The reality is that becoming a successful business owner takes hard work. That means hours and hours dedicated to researching, planning, and building your vision. And whether it takes months or years, at some point, your vision becomes reality, and you truly find success. Of course, everyone measures success differently, but once your business takes off, new challenges emerge. That’s why planning is critical for ongoing business success.
Most business owners recognize the importance of planning but feel there just isn’t time. However, once you reach a certain level of success, you need to consider and plan for certain variables. These are the unforeseen factors that can come out of nowhere and derail the business you worked so hard to build. Things like changes with the economy, taxes, your health, or a vital employee can be outside of your control and could make maintaining and growing your business difficult. If you haven’t already addressed these often-overlooked planning areas, consider these potential challenges:
Most people don’t focus on the “what-ifs” that could disrupt business but planning for these can literally save your business. What’s your plan if you get divorced, become disabled, or lose a professional license? Or, if you have a business partner, what happens if he or she leaves, passes away, or gets divorced?
If you’re like many people, your business IS your retirement, so you re-invest your profits back into the business. There are unique challenges that business owners face with this retirement strategy. Planning now can help you identify the best way to address your particular situation.
Many businesses thrive because of one or more key employee(s) whose skills, business knowledge, and dedication are vital for ongoing success. Protecting your business before losing your most important employee can make a world of difference for long-term success.
Often, business owners think estate planning is only for the very wealthy. But, if the majority of your assets and net worth are tied to the business, then it’s critical to have a plan in place in case something happens to you, especially if you’re married or have children or one or more business partners.
Now that you know more about these potential business pitfalls, including them in your long-term planning can help with ongoing business success. After working so hard to build up your business, don’t leave the future to chance. Set aside time quarterly for ongoing planning that grows and protects your business vision. In addition, develop strategies to address those financial planning areas that may be out of your control.
* The information in this material is not intended as specific investment or planning advice. It may not be used for the purpose of avoiding any federal tax penalties. Registered Representative of, and Securities and Investment Advisory services are offered through Hornor, Townsend & Kent, Inc., (HTK), Registered Investment Advisor, Member FINRA/SIPC, 130 Springside Drive, Suite 100, Akron, Ohio 44333. 330.668.9065 Bridger Financial Group and other listed entities are independent of HTK. HTK does not provide legal and tax advice. Always consult a qualified tax advisor regarding your personal tax situation and a qualified legal professional for your personal estate planning situation.