The easiest way to be sure your business is being “worked on” is to hire professional help to do that planning work. The “do-it-yourself” drive that helped start the business will not serve an owner well when it comes to managing the many financial issues created by that business. This is where professional expertise often becomes necessary.
We believe that successful entrepreneurs need to think like owners of sports teams and have a head coach to coordinate these diverse issues. Someone needs to make certain that nothing falls through the cracks and that the team of professionals are aware of the game plan and the direction in which the team owner wants to travel.
Here are four reasons why you, as a business owner, should consider hiring a financial head coach:
- Experience – We all make mistakes. The best part is learning from our mistakes. Even better is learning from somebody else’s mistakes and putting stopgaps in place to avoid them. Business owners may not have a large margin for error; capital may be at a premium, risks abound with litigation, tax filings, insurances, labor laws, etc., and one slip up can bury a small business. Hire professionals who have the experience to help a business owner like you.
- Time – Think about the services you pay for like lawn care or house cleaning. You pay others to do this work, not because you can’t or don’t know how, but because it’s a more efficient use of your time to pay someone $10/hour if your time and expertise in the business is worth $100/hour. Business owners need to have someone to delegate to so you can focus on executing the business plan.
- Expertise – Reality is, that we don’t know what we don’t know – which is why we pay experts. A financial head coach should have deep understanding of all facets of your financial game plan, including:
- Tax planning – coordinating your investment portfolio, enhancing retirement benefits or timing purchases or capital spends
- Risk management – you may not be backed by a large corporation with lawyers on staff, or have key employees to fill in for you if you are too sick or injured to work
- Retirement planning – defining what type of plan is best for your business structure, for other employees, for your tax planning and employee benefits.
- Cash flow – determining what’s best for your own balance sheet and what’s best on the balance sheet of the business
- Estate plan – building a business succession plan for your heirs, employees, clients and customers
- Efficiency – Having a head coach consolidates the fractured advice you may receive from multiple sources and minimizes the possibility of something significant slipping through the cracks.
Exercise your privileges as “the boss” and delegate these issues to qualified tax and financial planning professionals. Assess who you’re working with and if they have the experience and expertise to be able to take on this leading role. You and your business will be well served to have you doing what you do best – running your business – rather than managing the financial complexities associated with it.
Securities offered through LPL Financial, Member FINRA and SIPC. Investment advice offered through U.S. Financial Advisors, a registered investment advisor. U.S. Financial Advisors and Haas Financial Group are separate entities from LPL Financial.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.
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