The hustle and bustle of everyday business responsibilities often causes entrepreneurs to lose focus of why they got into business in the first place. As time passes and the business grows, certain objectives that once fulfilled their needs may no longer be desirable.
Do you ever stop to rethink and adjust your personal goals and priorities? Let's examine some main concerns of many small business owners.
Strengthening personal finances and building wealth is a first goal. Many business owners become so focused on their day-to-day activities that they inadvertently end up putting their personal finances on the back burner. This mayoccur if most of their liquid assets are invested in the business. But in order to achieve financial independence and build personal wealth, it is necessary to make personal savings a priority. By having annual financial reviews, and taking follow-up action as needed, you can help develop and reinforce your personal financial position.
A second issue for most entrepreneurs is planning for retirement. Business owners and their employees are eligible for many tax-qualified retirement plans, like simplified employee pensions (SEPs) or 401 (k) plans. The size of the organization and the age and salaries of the staff, must be taken into consideration to analyze which retirement plan is best to choose. Additionally, nonqualified plans offer selective benefits for owners and their highest regarded workers.
A third consideration is developing an exit strategy. Will your company be marketable if and when you decide to exit? It is important to develop an "exit"plan that can help realize the value of your operation in the event you choose-or are compelled (due to death or disability)-to pass on the business.
You must also decide if you want to keep your business within the family. The business, like many others, may be a tight-knit business that is run by several family members. If your exit strategy involves keeping the business in the family, it is essential to know how the plan affects your long-term goals.
As you develop and grow your business, it is critical for you to stay keep sight of your individual priorities, especially as they change with time. By conducting periodic reviews, you will help assure that your business accomplishments agree with your individual objectives.
Do you ever stop to rethink and adjust your personal goals and priorities? Let's examine some main concerns of many small business owners.
Strengthening personal finances and building wealth is a first goal. Many business owners become so focused on their day-to-day activities that they inadvertently end up putting their personal finances on the back burner. This mayoccur if most of their liquid assets are invested in the business. But in order to achieve financial independence and build personal wealth, it is necessary to make personal savings a priority. By having annual financial reviews, and taking follow-up action as needed, you can help develop and reinforce your personal financial position.
A second issue for most entrepreneurs is planning for retirement. Business owners and their employees are eligible for many tax-qualified retirement plans, like simplified employee pensions (SEPs) or 401 (k) plans. The size of the organization and the age and salaries of the staff, must be taken into consideration to analyze which retirement plan is best to choose. Additionally, nonqualified plans offer selective benefits for owners and their highest regarded workers.
A third consideration is developing an exit strategy. Will your company be marketable if and when you decide to exit? It is important to develop an "exit"plan that can help realize the value of your operation in the event you choose-or are compelled (due to death or disability)-to pass on the business.
You must also decide if you want to keep your business within the family. The business, like many others, may be a tight-knit business that is run by several family members. If your exit strategy involves keeping the business in the family, it is essential to know how the plan affects your long-term goals.
As you develop and grow your business, it is critical for you to stay keep sight of your individual priorities, especially as they change with time. By conducting periodic reviews, you will help assure that your business accomplishments agree with your individual objectives.
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