small business Archives

Does a Small Business Owner Need a Financial Advisor?

Written by Jeff Diamond, AIF® on May 25, 2022.

The Right Advisor Can Help You Boost Your Small Business Profit While Preparing for Retirement

As a small business owner, have you wondered whether you need a financial advisor? Most often, the answer is yes.

While there are certain parts of running a business that you can teach yourself as you go along, managing your business finances with little or no background may not be one of them. In fact, poor money management is one of the most common reasons businesses fail. If you’d like help with things like building a budget, developing a smart tax strategy, and fine-tuning your cash flow, it may be time to hire a financial advisor. Read on to learn about the benefits and how to choose the best advisor for you.

The Self-Employed Cash Balance Plan

Written by admin on February 9, 2022.

Small Business Owners Can Benefit from These Plans in More Ways Than One

Within many companies, employees enjoy a plethora of benefits that come along with their salary. Typically, there’s paid time off, health insurance, and for some, access to retirement savings accounts through the employer. One way a company may offer to help their employees save for retirement is through a cash balance plan, which works almost like a traditional pension plan but with some differences that make it attractive to small business owners. In essence, a cash balance plan provides self-employed individuals the opportunity to make sizable contributions to a retirement savings account while also enjoying tax benefits for their businesses.

This is an important option to consider because, oftentimes, self-employed individuals end up robbing themselves of the benefits that others get because they’re focused on putting all their money and resources into their business. However, cash balance plans come with tax benefits that significantly help any self-employed individual in the present, while offering a valuable way to save for retirement, too.

Ask These Five Questions When Selecting a Retirement Plan Consultant

Written by Zachary Morris, CFP® on January 12, 2022.

Ensure You’re Getting the Right Professional Assistance in this Complex Area of Your Business

As a business owner, you have enough on your plate without tackling all that’s required of you as a retirement plan sponsor. It’s complex, to say the least, and the growing number of court cases around mismanagement of retirement plans means the stakes are high to get it right. That’s why so many businesses rely on a trusted retirement plan consultant to help them navigate plan governance, design, oversight, fiduciary responsibilities, and more.

If you have determined that you need a skilled assist in this area, it’s critical to select the retirement plan consultant that’s best for you. While every company’s needs are unique, there are a few baseline questions you should ask any consultant you’re considering, and we recommend starting with the five questions below.

Choosing the Best Retirement Plan for Your Employees

Written by Zachary Morris, CFP® on December 6, 2021.

Review the Options to Determine the Best Employer-Sponsored Plan for Your Company

As a small business owner, you understand all the complexities that come with being responsible for not only yourself, your company, and your family – but for your employees, as well. While it’s easy to get bogged down in the day-to-day details of running your business, periodically taking stock of your company’s overall financial health is a great way to ensure that your business is in a position to thrive now – and for years to come. Consider the options, pros, and cons when trying to choose the best retirement plan for your employees.

Each day, you make decisions that affect your business. How can you be sure that you’re keeping the big picture in mind and that each decision you make is a sound choice for your bottom line and long-term business goals? Below we’ll share a simple but effective financial health checklist for your small business.

Small Business Financial Health Checklist

Written by Jeff Diamond, AIF® on November 15, 2021.

How to ensure your business remains strong now and into the future

Five Financial Tips for Small Business Owners

Written by Zachary Morris, CFP® on October 28, 2021.

Having a Firm Hold on Your Finances is Crucial to Your Company’s Success

Small businesses are vital to the U.S. economy, employing half of the private-sector workers in our country. They also create 1.6 million net new jobs annually, according to federal data. As of 2020, there are 31.7 million small businesses in America, which accounts for 99.9% of U.S. businesses.

Despite an integral part they play in the economy, small businesses often struggle to find success. In fact, the U.S. Bureau of Labor Statistics has reported that 20% of small businesses fail within the first year of opening and only one-third of businesses are able to survive the 10-year mark. The leading cause small businesses cite as the reason they were forced to shut their doors is – you guessed it – cash flow problems.

When it comes to the success of your small business, having a strong wealth management strategy in place and practicing smart money habits can play a significant role in your long-term success. Follow these five tips to help keep your business on track.

Small Business Employee Compensation Packages: Choosing What’s Right for You

Written by Zachary Morris, CFP® on September 13, 2021.

A Written Compensation Plan is Vital to Your Company’s Success

If you’re a successful small business owner, you likely have a solid business plan in place. However, if you’re like many entrepreneurs, you aren’t as adept when it comes to devising employee compensation packages. It can feel a bit like an afterthought when you’re focused on launching or growing your business, but determining the right compensation package may be critical to your long-term success. After all, the right compensation can assist you in recruiting top talent and in retaining your top performers.

As you consider your options, do so with your company’s overall strategy and values in mind. You want to be able to compete for the best talent, but without overextending your resources. Below we’ll discuss a few ways you can get started.

Navigating Inter-Generational Wealth Transitions When You Run a Family Business

Written by Jeff Diamond, AIF® on February 24, 2021.

Guidance for Overcoming Common Challenges

Having something to pass down to future generations of your family is a dream shared by many people, especially those with family businesses. If you’re lucky enough to achieve it, however, you may face some of the common challenges of an inter-generational wealth transition. So challenging is such a transfer, in fact, that 90% of affluent families have greatly diminished wealth by the third generation. Below, we will discuss three common wealth transfer issues and provide guidance to help you navigate these potential challenges and ensure your assets move smoothly to the next generation.

Why Bankruptcy Can Sometimes Be the Right Option for Your Business

Written by Zachary Morris, CFP® on January 27, 2021.

If you can get past the stigma, bankruptcy can be a vital lifeline.

Running a business is always a challenge, and it’s been made more so in recent months as stimulus aid for COVID-19 begins to run out for many struggling small business owners. If you find yourself in this boat and you are unsure of your options for survival, know that there is a way forward. If you’re unsure how to stay afloat and avoid closing your doors for good, bankruptcy may be the right option for you.

Bankruptcy may seem like a frightening concept, but it can offer a struggling small business the opportunity to reorganize, oftentimes without the need to lay off employees or even close temporarily. In this way, it can preserve your relationships with vendors and customers, too. Of course, there’s a certain stigma around bankruptcy, which makes many business owners reticent to choose this option, but it could be key to your business’ survival during this pandemic.

Tag: small business