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Book a FREE consultation
and receive your complimentary eBook

Get started with a free strategy consultation and receive a copy of the Good Fortune Guide – written by James McFall, Managing Director Yield™ FP and 2020 National Finalist Certified Financial Planner of the Year to help educate you on your Financial Plan.

5 Things Business Owners Should Consider

Business Planning With all intricacies of business planning and protection, like bucket company structures and business insurance – having a financial plan for your business could benefit you in the long run.

Constructing and operating a business of your own is no easy feat. Business owners can often get swept up amongst the excitement of the process, but if it is success that you are after, being able to maintain a healthy balance when tending to the financial health of your company is integral.   

It is estimated that approximately 20% of businesses fail within their first year of operating, whilst a staggering 60% will go bust within the first three years. How do you ensure that you and your business aren’t headed in the direction of soon becoming another statistic? Having clarity regarding your direction and intentions is essential in order to reap the full benefits of owning a business. To reach this point it may be of interest to you to consider the factors that have been outlined below for your benefit.   

Have a Budget in Place and Stick to it 

Having a suitable budget goes hand in hand with constructing a business plan, both play key roles in business success. Whilst constructing a budget can be considered the easy step, it’s the implementation of these steps that can prove to be difficult to uphold.  

By mapping out your predicted cash flow it is a measurable strategy that builds a great foundation for your business, enabling maximised levels of productivity and therefore success.  

This reduces the stress of managing business expenses, as you will be aware of how much money is being spent and where exactly it is going. 

Expect The Unexpected  

It is fundamental to ensure that you have a secure emergency fund, as this will prove to be integral in the event of circumstances you have not planned for.

Challenges will naturally be faced in and outside of your business and so it must remain a priority of yours as a business owner to protect your business in the event of emergency occurrence.

Related to this, we recommend that you prioritise an insurance meeting with your financial advisor to ensure you have the protection you need.

Pre-emptive Tax Management  

Although taxes remain an inconvenience to most, the legal responsibility in which a business must adhere to in this regard makes them a factor that is impossible to avoid.  

An adequate comprehension of the tax system is necessary, as without a firm grip on the obligations, some businesses end up inadvertently paying more than they should, due to limited knowledge of the system.

A tax saving avenue, which often goes undetected and under-utilised is the use of tax saving strategies and structures, one of which is a bucket company. Using your business structures as part of your personal wealth plan, can combine to be a powerful part of your retirement strategy.

Have a Thought-Out Succession Plan 

The element of long-term planning will work to assist you when you decide to leave your business, as it will contribute to a successful and effective transfer of your business to a successor. 

This point is extremely relevant now, due to the current economic climate. When faced with economic uncertainty and the ever-changing nature of business, the implementation of a succession plan can help you manage the rapid change that accompanies the transition out of a business, and to do so effectively.

A financial planner can help you develop your succession plan and underpin it with appropriate insurance, in case of an unexpected event, such as death of a partner. 

Structure Your Business to Achieve What You Want Personally

A recognisable point of difference between a successful business and that of the contrast, is the ability of the business owner to separate their business need from their personal. Co-ordinating your business plan to work in harmony with your personal financial plan will help avoid periods of high stress, which can ultimately lead to poor or pressured decision making.  

Once you have a business that is regularly achieving its revenue targets, these 5 strategies will help you harvest the maximum profit, which can then be put to work as part of your personal financial plan. Making your business plan work in harmony with your personal financial plan is the critical success factor for most business owners we see, who’s business is working for them, rather than just them working for the business.  

Yield Financial Planning is Here to Help 

Implementing the appropriate financial management strategies is essential for any business, it can often prove to be the difference between success or failure. By taking the time to tend your company, you are likely to reap the benefits. If you feel as though you aren’t harnessing the full potential of your finances, don’t hesitate to contact our team of industry professionals here at Yield Financial Planning.

business owners

Important Note
Any information provided here is general advice only and does not consider your objectives, financial situation or needs. This information should not be taken as comprehensive and does not constitute legal or financial advice. You should seek legal, financial or other professional advice before relying on any content. Yield Financial Planning is not responsible to you or anyone else for any loss suffered in connection with the use of this information. Information is only current at the date initially published.

About Yield™ - Financial Planner Melbourne

Who we serve – We help time poor professionals and business owners who intuitively know they should be doing more to improve their financial position and are seeking an expert to guide them on financial planning strategies. Our clients want personalised financial planning advice and to feel empowered and confident that they can achieve a secure transition to retirement.

What we do – We gain a deep understanding of your current financial position and preferences, what you value and want to achieve. We then help you develop a highly personalised financial plan, to show you how to make your money work harder for you. Ongoing we regularly monitor and measure progress against your plan projections, to show you how you’re tracking and help you manage change to your advantage.

How we do it – We apply our proven expertise in investment markets (Shares & Property), Tax and Debt structuring, Retirement Planning, Risk management and Estate planning, to help you reorganise the way you use your money to achieve your desired outcomes.

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