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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.

Small Business Financial Planning: The Key to Business Success

Financial planning advice for small business owners
business and finance
Small Business Financial Planning Small business financial planning ensures informed decisions that align with your vision.

To run a successful small business in Australia, it is essential to be dynamic. But with so many decisions required each and every day, it can quickly become disorganised. Small business financial planning provides a framework for strategic decision making. So you achieve your goals, and navigate inevitable change and economic uncertainties. 

In this blog we show you what makes a small business financial plan sing! Including:

  1. Risk Management
  2. Debt Handling
  3. Tax Optimisation
  4. Other Tailored Strategies

At Yield Financial Planning, we are a growing small business ourselves. We love helping small business owners succeed and will help you bind your personal financial plan with your business plan. This way you can truly leverage the great things you are already doing in your business.

Mastering Small Business Financial Planning and Unlocking Success

Small business financial planning is the compass for calculated decision-making and strategic growth. It involves setting clear financial goals; strategic use of resources; and carefully planning steps to reach your goals.

Once you get your financial plan clear, decision making for your business will be easier. What's more, it will help you align your growth objectives with risk management strategies so your business is more robust throughout the economic cycle.  

small business property

Why Business Planning is so Important 

  • Navigate Uncertainty: The economic landscape is ever changing and unpredictable. What is great about a small business financial plan is it supports you to manage strong, and inevitably weaker periods in your business. For example, managing liquidity and cashflow will give you flexibility to invest when opportunities present. But when things are not so great, having adequate insurance will help you get through it. 
  • Debt Optimisation: Loans can support growth, but left unchecked can become a problem. With interest rates rising rapidly in 2022 and 2023, it shows how quickly things can change. What your business plan will  do is help you maintain a close watch over your debt position and keep a balance between debt and equity. 
  • Unlocking Tax Efficiency: You want a financial plan to minimise your tax payable where you can and a small business financial plan considers a raft of tax strategies. Tax is the largest expense most Australians have in life, and even more so for small business owners usually. So mastering tax strategies that keep more tax in your pocket, is a cornerstone of your financial plan. 

Small Business Financial Planning Steps

Step 1: Budget and Forecast: Without a business budget and considered financial projections you are making your life harder. Properly planned budgets and forecasts make understanding your cash flow and spending decisions easier. Cashflow management is foundational for your business success and will dictate what you have to play with, to invest back into your business and the profit you have to take out.

Step 2: Risk Management: Identifying and mitigating risks is what creates resilience. It really is the cornerstone of your small business financial plan. Make a list out your business risks. These include economic fluctuations; supply chain disruptions; competitors; regulatory change and others. You need to understand what might go wrong and have a contingency plan for managing it. Asset structuring is vitally important, including how you structure your personal assets, to protect from business risks. 

Step 3: Succession planning and Retirement: A business owner without a retirement plan, may be working for their business, rather than having their business work for them. Succession and retirement planning help ensure you are willing and able to make the transfer of leadership and that the business will be secure upon stepping back. A financial planner is perfectly positioned to help you relate your business succession to your retirement objectives and goals.  

Step 4: Grow with Strategic Investments: Too many business owners have money sitting in cash that is underutilised. Surplus funds hold the potential to create diversified revenue streams. Financial planning guides you towards prudent investment avenues that align with your risk appetite and your business goals. Finding the balance between liquidity and what you want to achieve personally. 

Yield Financial Planning are Experts For Business Owners

Yield Financial Planning specialise in supporting the needs of business owners. In fact more than 30% of our clients are business owners. Our expertise lies in helping small business owners to link their business success with their personal financial plan and we love it. 

Contact us today for a no obligation discussion to see how we can help you grow wealth and retire securely on your terms.  

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.

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Free Consultation

Free Consultation

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.