It’s not unusual for business owners to have competing priorities. They can be focused on sales and business growth, client and staff relationships, stock control or production cycles… the list is endless.
It’s also not unusual for them to put their own financial plans to the side while they are engrossed in the business… but this can be detrimental to their long-term financial future.
Seeking the services of a professional financial adviser can prompt a business owner to bring their own personal financial security back to the forefront of their mind, and also to align their personal goals with their business plans.
If you are a business owner, here we look at some of the key ways a financial adviser can support you as you build your wealth.
Identifying financial goals
First of all, it’s important for you to be able to articulate your financial goals – not just where you want the business to be in five or ten years, but what you want personally.
Do you want to pay off your mortgage? Are you keen on boosting your retirement savings, or have you dreamed of taking a round the world trip for your 25th wedding anniversary?
By developing a clear financial plan based on those goals, you can be confident that you have true financial control. A financial adviser can help you understand the steps required to achieve success and can guide you as you couple your personal wealth goals with running the business.
This way it won’t be all work and no play… you will have the freedom to enjoy some of the other priorities in your life as well.
Building your superannuation
Another area where a financial adviser can support business owners is managing superannuation.
When you work for yourself, it means that nobody is contributing to your retirement funds except you. It’s essential that you allocate enough funds to your superannuation so that you can enjoy the retirement you deserve.
Regular superannuation contributions not only build your future financial security, they can also be an effective tax strategy as they attract a lower tax rate than your regular income. However, it’s important to be aware of contribution caps, so make sure you discuss this with your financial adviser before making large lump sum contributions.
Protect your business
Your business – no matter how big or how small – is valuable and it needs to be protected. Again, this is where a financial adviser can help.
In the same way that insurance is important in protecting aspects of your personal life, it is also crucial for your business. An adviser can help you determine whether you need income protection insurance, key person insurance or even buy/sell insurance.
Plus, an adviser can discuss the business structure and how assets would be distributed should something unforeseen occur. Taking the time to undertake estate planning can provide you with true peace of mind.
Speak to us today
Here at First Financial, we have a team of financial advisers ready to assist you. We are highly experienced in working with business owners across a wide variety of industry sectors and can support you as you build your wealth. We can help you secure your financial wellbeing with a long-term financial plan.