If you’ve overlooked some of the financial planning issues described below, don’t beat yourself up: you’re in good company.
Many of your fellow entrepreneurs are in the same boat. We won’t judge you. However, we will say it’s time to address these shortcomings. Your Future is Now. Let’s Get to Work!
Here are five financial planning issues that huge numbers of entrepreneurs have in common.
1. You Don’t Have a Personal Financial Plan
Planning and taking action are critical to achieving all successful outcomes. “Hope” is not a planning strategy. Nevertheless, many business owners don’t have a personal financial plan that incorporates their business plan.
As a result, entrepreneurs are failing to plan for their families’ future.
Because they’re risk-takers, entrepreneurs may feel comfortable without a plan for their family’s future. However, if things don’t work out, they could be leaving their family in a precarious situation.
2. You Feel Overwhelmed by All the Options, so You Never Get Started
Entrepreneurs don’t create a personal financial plan because it’s difficult, time-consuming, and requires knowledge they don’t possess.
Furthermore, they don’t know who to trust with their financial matters and don’t want to give up control of their financial future by delegating this function to a service provider.
3. You Feel Embarrassed or Ashamed of Your Financial Situation (And Don’t Want Anyone to Know)
Entrepreneurs often experience emotional blockages regarding their personal finances, leading them to de-emphasize or procrastinate on their personal financial and life planning responsibilities.
For example, if you have few investments or are disorganized, you may feel anxious, insecure or embarrassed about your lack of attention to these areas.
4. Your Wealth Is Concentrated in Your Business (You Haven’t Invested Much, Creating Risk)
According to the Exit Planning Institute’s (EPI) 2023 National State of Owner Readiness Report, an entrepreneur’s business often represents over 80% of their net worth, and their financial goals are often significantly underfunded by outside financial investments.
Lacking outside financial investments, most entrepreneurs don’t feel they need a financial advisor.
Even without substantial outside financial investments, a personal financial plan is necessary to address tax integration, risk management, and estate planning.
The EPI reports that only 20%-30% of attempted business sale transactions reach completion. Therefore, relying on the sale of your business for significant financial gain is risky.
5. You Haven’t Even Considered What You Might Do if You Actually Sold Your Business
Entrepreneurs must also consider the non-financial aspects of no longer working.
The same 2023 EPI study found that 70% of owners “profoundly regret’ selling one year after selling their business.
Not because they didn’t receive enough sale proceeds, but because their life no longer feels fulfilling. They need a new purpose for their life, and they didn’t plan for this before they sold.
Sandene Strategies’ Solutions
We understand all the financial, non-financial, and emotional reasons that entrepreneurs neglect their personal finances. We’re non-judgmental about people’s situations. Our objective is simply to make a positive contribution by guiding you through our proprietary financial planning process.
We listen attentively as you articulate your desires, then we assemble a team of experienced professionals to create Your 360º FutureTM Blueprint.
This comprehensive financial plan incorporates the plans you have for your life and empowers your future of growth, purpose and fulfillment.
Your Blueprint can be used as a decision-making filter, guiding your business and personal decisions and actions.
Your Future Is Now. Let’s Get To Work!