by Matt Kuhn, CFA, AIF®

Investing time and energy to develop detailed plans for growth is a task that dedicated business owners perform – but that’s not their only priority. A solid strategy for both their business and personal finances, especially since the two are usually intertwined, holds the key to a business owner’s overall long-term financial success.

What does strategic business planning look like?

Setting strategy is a crucial part of putting businesses on the path to stable and profitable growth. What does that look like? Start by reviewing this checklist of “best practices” for business owners, and determine what aspects of your current business plan may need strengthening to keep you on track.

Set strategic quarterly, monthly and/or annual business goals. More than simply setting revenue hurdles:

  • Regularly assesses and address your long-term objectives.
  • Examine how your business offers both an outstanding customer/client experience and career development for your staff.
  • Manage and determine capital spending and investment needs.
  • Keep your business environment, proprietary information and technology safe and secure.

Focus on the bigger picture. Arrange for some time away from the office routine, where you can fine-tune the details of your strategy. Use that time to:

  • Review the practices, policies and investments have contributed to your business’ success and growth – and understand what hasn’t worked so well.
  • Pinpoint areas where you can grow your business, as well as trends that could affect your industry.
  • Use your knowledge about current success, future growth areas and upcoming trends to develop practices and policies to keep your business healthy and strong.

What does personal financial planning for business owners look like?

We recommend business owners focus on their personal financial plans using a similarly methodical approach. Are you sacrificing your own financial health for your business? Review this checklist of “best practices” and examine aspects of your current personal financial plan that may need revision while you run your business. Do you:

  • Pay yourself adequately, so that you can sustain liquidity and build up personal savings and retirement funds?
  • Work with an expert to build an investment portfolio to complement the risk/reward profile of your business?
  • Track your personal income, expenses, assets and liabilities?
  • Plan for potential personal emergencies with adequate cash reserves?
  • Ensure your financial, tax and estate planning advisors are working for you as a coordinated team for the benefit of you and your family?

Owning and running a business is no small accomplishment. Our advisors understand that business owners consider a multitude of factors to ensure financial success for their companies, and we encourage them to do the same with their personal finances.

If you are a client, we are already taking these considerations into account. If not, contact Harris Financial Advisors to explore how we can help you and your business thrive.