Do you know the #1 reason small businesses eventually fail? Up to 82% of failures directly result from owner-related cash flow problems. When you drill down into this group, a common trend emerges. It reads like this:
- Owner invests in growth, despite risk.
- Risk turns out to be riskier than thought.
- The owner’s personal finances shorten the runway for takeoff.
- The business folds.
It highlights something we want every one of our entrepreneurial clients to know: an integrated financial plan is indispensable. When making significant business decisions, you need to know how it affects your personal financial situation and vice versa.
If you picture a plane, you would never operate each wing blindly from the other. Both wings need to be coordinated to keep the aircraft stable. This is what an integrated financial plan does.
We talk through situations with clients like:
How many trucks can I afford to add to my fleet?
How much cash should I have on hand to open another location?
How does the addition of new co-owners change my succession and estate plans?
If you’ve felt like your business and household finances have been competing, it’s time to marry the two sides. This is a vital part of our approach to planning–especially to inform our clients when business decisions would drastically change things for their household. The decision is always yours, but we want you to see the full picture.
