Give Your Business the Gift of Financial Planning

May 14, 2023

As an entrepreneur, you probably have a lot on your plate. Juggling the demands of running a business and planning for your future can be tricky, but it's extremely important to make time for both. A solid financial plan can help you achieve your long-term goals while staying on track with your day-to-day operations.

It’s not the same thing as your existing business plan—and a professional wealth manager is generally a preferable choice for preparing one—but it can potentially streamline your personal and business finances, your retirement, and much more.

These topics and more are discussed:

  • Financial planning is vital to running a successful business
  • The benefits include reducing risk & improving cash flow
  • Make better decisions about your business's future
  • There are many different types of financial planners

Financial Planning Is Vital to Running a Successful Business

Building a sound financial plan is critical for any business that wishes to achieve lasting success. In other words, you work too hard to miss out on the thousands of dollars you could save by using one.

Financial planning is the process of creating long-term objectives and short-term goals, defining asset allocations, and assessing risk factors. Rather than replacing your initial business plan, it supplements it, factoring it in along the way as your personal and business saving, investing, tax deductions, and more are streamlined for efficiency.

From setting attainable goals and preparing for unexpected expenses to recovering money owed from customers (and allocating resources more efficiently), it can provide concrete strategies tailored to the unique needs of your company. Ideally, you want one prepared in conjunction with a CERTIFIED FINANCIAL PLANNER™ (CFP).

A fiduciary CFP® will take the time to understand each part of your business and develop holistic financial advice encompassing your investments, taxes, budgeting, cash flow management, insurance, lending, and retirement planning. By definition, the fiduciary duty means putting the interests of the client first at all times.

With their experience and expertise regarding money matters, you can potentially stabilize your finances in the short term and have greater confidence about your long-term goals.

Don’t Wait Until Spring To Start Planning Your Income Taxes! Start Now for Better Savings.

The Benefits Include Reducing Risk & Improving Cash Flow

Every individual, family, or business should take a critical look at their financial situation and develop appropriate strategies for wealth management. This type of planning can help reduce your risk of making decisions based on emotion rather than sound principles by clarifying their financial objectives.

Put another way, financial planning is essential in managing wealth properly; it allows a business to compare your actual performance to plans and strategies developed ahead of time. Furthermore, you can make better decisions through detailed budgeting and regular progress checks against those goals.

Especially during today’s inflation and market volatility, it can prevent disastrous personal missteps, as well. For example, if an asset in your retirement portfolio is down—but it’s temporary; due to supply chain issues—and you’re tempted to sell off, you could regret doing so if that stock is making gains again next year.

In addition to providing experienced insights for your saving and investing, a wealth manager can be a sounding board for times like this: You’ll never be told “No” (because you remain in charge), but you might be asked to sit down and look at research with them before committing to a hasty, possibly panic-led decision.

This can come in addition to reviewing your cash flow, assets, bills, income sources, and insurance coverage needs. With smart financial planning techniques in place, it is possible to build your wealth over time, even now, by focusing on more predictable outcomes through uncertain markets.

Make Better Decisions About Your Business’s Future

One of the most important things you can do for your business is map out your vision of its future. That’s what can make working with an advisor such an advantage for entrepreneurs: Financial planning can help you understand how your taxes, profits, and expenses will be impacted by your long-term and short-term decisions.

We don’t have any more of a crystal ball than you do. However, at Ironclad Wealth management, our extensive experience and knowledge can be harnessed for making well-educated guesses about where, for example, you should consider expanding. Using a financial plan for your company that factors in your basic business plan is potentially far more beneficial than relying on a business plan, alone.

There Are Many Different Types of Financial Planners

When it comes to financial planning, one size definitely doesn’t fit all. Different types of advisors offer a variety of services that can help to meet the needs and goals of individuals and business owners. For instance, retirement planning advisors have specialized knowledge about Social Security benefits, pension plans, and IRAs; estate planning advisors provide assistance in structuring an estate plan that meets any tax implications; and so on.

Entrepreneurs with a single business (alongside multiple-business owners) looking to diversify their investments, build business wealth, and protect their financial future should leverage a CFP®. It couldn’t hurt to make sure that they specialize in tax planning, either: The IRS is rolling out new brackets for 2023.

Tax returns, not to mention small business taxes, should never be left until the last minute. An advisor who follows the fiduciary standard can guide you through potential tax credits, helping you reduce your overall tax liabilities (meaning how much the IRS says you owe).

Planning Your Future Doesn’t Have To Be Expensive

Unfortunately, people sometimes mistakenly think that they can’t afford a financial plan. Large-scale services may be pricey, but there are many other affordable resources out there to consider, as well. Professional wealth management does not have to be expensive; all it takes is some dedication and creativity.

For example, Ironclad Wealth Management will get started working on a plan with you for only $299 per month. That’s a flat retainer fee. If you opt to continue working together through your plan’s implementation phase and long-term (which is where we potentially lower your tax bills), it has a management fee of 1.0% annually (billed .25% per quarter).

Since we began as a small business, ourselves, you might say that we know what it’s like. We specialize in tax planning for small business owners, but we also provide wealth management in Atlanta for individuals and families. Contact us to learn more.

If Patrick Can't Save Your Business $5,000 in Taxes, You Get Your Money Back

MGO One Seven LLC ("MGO One Seven") is a registered investment adviser with the U.S. Securities and Exchange Commission (SEC). Registration with the SEC does not imply a certain level of skill or training. All titles listed for individuals associated with Ironclad Wealth Management represent the individual's role with Ironclad Wealth Management, and not their role with MGO One Seven. Services are provided under the name Ironclad Wealth Management, a DBA of MGO One Seven. Investment products are not FDIC insured, offer no bank guarantee, and may lose value. Please visit our website for important disclosures.

Please note, the information provided in this presentation is for informational purposes only and investors should determine for themselves whether a particular service or product is suitable for their investment needs. Please refer to the disclosure and offering documents for further information concerning specific products or services.

Nothing provided in this presentation constitutes tax advice. Individuals should seek the advice of their own tax advisor for specific information regarding tax consequences of investments. Investments in securities entail risk and are not suitable for all investors. This site is not a recommendation nor an offer to sell (or solicitation of an offer to buy) securities in the United States or in any other jurisdiction.

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