What advantages can financial planning offer for business owners in the Tampa, FL, area?
Starting a small business often requires a “leap of faith.” You will work harder than you ever have to achieve your dreams. When it comes to running a small business, the most important aspect is having a solid understanding of your company’s financial standing and long-term goals. Financial planning for business owners is vital to the company’s success.
Here are five advantages that financial planning offers you as a business owner:
Evaluating your goals
Most likely, you started your business because you had dreams you wanted to reach. Understanding your business goals will help you along the way to planning for the future from a financial perspective. Make sure that you separate your personal goals from your business goals. For example, hiring a new employee is a business goal, but an objective aimed at your family’s priorities is a personal goal.
The objective: to have more assets than liabilities. As a business owner, part of financial planning is evaluating your assets and ensuring that you have enough liquidity. This will help you in securing funding or business lines of credit, allowing you to also have a buffer to meet short-term financial obligations.
Analyzing cash flow
Cash flow is important. You have to pay your employees and purchase materials. Ideally, you will meet your obligations and grow your reserve for investments. Analyzing your cash flow will give you a solid idea as to how much money is flowing in and out. You should perform a cash flow analysis on a regular basis, which will allow you to understand your cash flow pattern throughout the year.
Perhaps you did your personal taxes. Business-related taxes are a whole other beast. Consider hiring a certified public accountant who can help guide you. Proper financial planning in regard to your tax obligation can go a long way in reducing the risk your business takes on.
Sure, it is nearly impossible to plan for every risk-related scenario. A big part of financial planning for business includes a solid understanding of the risks and ways to mitigate them. Not sure where to start? Make sure your business is equipped with a crisis communication plan and cybersecurity insurance.
Talk to a ProVise CFP® professional about financial planning for your business
At ProVise Management Group, our CERTIFIED FINANCIAL PLANNER™ professionals can get to know you and your current financial circumstances, goals, risk tolerance and personal values to help you develop a plan that works for you. We can also create a written plan for you at a fiduciary standard of care. All our written plans come with an unconditional money-back guarantee. If you are unhappy with your written plan, you can return it to us, and we will refund 100% of the fee paid.
Are you ready to talk to a professional about financial planning for your business? Contact ProVise today to schedule a complimentary consultation.