Smart Financial Planning Tips for Small Businesses

it’s really important for small business owners to understand their personal financial situation and then also develop a financial plan to help them reach all their different financial goals that they have for themselves some tips I like to offer my clients are know your current financial situation

what I mean by this is just know your income your expenses know how many assets you have no your liabilities know all your different insurance coverage just know everything going on today in your personal financial situation you won’t really just want to take inventory

up at all then you want to determine your different financial goals so you want to break this up into short term goals medium-term goals and long-term goals that will help you kind of stay more motivated along the way and also plan more strategically with your money for each one of those goals then you want to save for those goals so it’s really important as a business owner that you continue to save for all your different financial goals outside of the business some common examples would be let’s say

you want to travel in a year you want to travel the world you know you want to be able to save for that you want to buy a home or a second home you want to send your kids through college you want to retire at a certain age so there’s lots of different financial goals that you want to plan for and then be able to save on a regular basis and the last one would be just live within your means this will help you save for your financial goals but as business owners our lives are really complex and you know again we just want to know what our personal financial situation is we want to know our cash inflow and outflow and make sure we can save and live within our means in order to provide a better financial future for ourselves and our businesses even though it can be time-consuming understanding your personal financial plan and goals can actually really help your business strategically it will help carry your business forward grow it to the level that it needs to grow to in order to support your personal financial situation you