Lifestyle Financial Planning for Business Owners
You may be someone who believes that someday you will own a business, successful beyond your wildest dreams or you may already own one.
Turning that dream into reality is an evolutionary process.It’s not easy, it involves not only having a solid and potentially ommercial idea but also knowing the “business of running a business.” It is our belief that would-be entrepreneurs need to develop a life plan before they ever write a business plan.
Business Owners without a personal life plan run the risk of starting a business that might not be good for them.
Before you develop a business plan, you must first have a life goal. Everyone should take the time to evaluate how they live. Then, develop a plan to achieve how they really want to live.
A business is simply a vehicle that helps to achieve this.
To get a good picture of your life plan, answer the following questions:
- What kind of lifestyle do you want?
- How big do you want your business to get in terms of profits and staff?
- What will your team look like and what skill sets will you need?
- How many hours a week will you be prepared to work?
- Are you willing to work seven days a week? If so, how long can you keep that up?
- Will you need a business partner and could you handle working with one?
- How will you fund your business whilst maintaining your lifestyle?
- What will your exit strategy be?
- What’s the best way to structure your business?
You may have a great business idea, but you must decide if it’s a good business for you and your family. With a life plan you will have a goal, a time frame and then you can develop a plan that will lead to personal and business success.
How does lifestyle financial planning work?
Unsurprisingly, lifestyle financial planning is a process. It starts with an exploration of your current financial life, concerns and issues. The development of the vision of where you want to be, how you want to lead your life, is at the centre of the process. The plan itself begins to emerge as the “ifs” and “buts” are addressed and strategies for both life and money are formulated.
Current and future lifestyle expenditure are central to the planning process, as is the development of a clear and realistic investment policy. For those who embrace the process the results are often life changing.
Traditional financial advisers focus on the products, budgeting, investments or insurance – without exploring the bigger and more important picture. This is not our style!