b'EXPERTS CORNERFinancial Strategies for Small Business OwnersJohn D. Williams, CFPDetermine an investment strategy andbusiness against financial losses resulting execute it with discipline. from the death of a key employee or owner. Retirement PlanningHow much money will it take to fundCash Flow Managementmy retirement? What expenses cant beMake sure you keep enough cash on reinvested in my business at retirement?hand to grow the business and to help What is a reasonable outcome for me toweather a downturn.It is also important Small business owners are in rare companypursue? All of these are good questionsto separate your personal assets and when it comes to the demands upon theirto ask yourself when it comes to yourexpenses from the business assets and time.The owner oftentimes plays numerousretirement.expenses. Setting aside three to six roles within the company and becomesmonths of expenses in a liquid, low-swamped with an endless list of tasks, withMany business owners consider sellingrisk account is recommended.If your limited time to accomplish them all. Whattheir business to fund their ownbusiness is cyclical and cash flow is small business owners sometimes forget isretirement. However, this can be risky, asuncertain, it may be prudent to plan for a that they need to adapt their own personalthe business might fail due to unforeseenyear or more. financial strategies for the new realities andcircumstances. Business ownership risks of being a business owner. affords multiple tax-advantagedGift & Estate Planningstrategies to save for retirement andRegardless of age, business owners Business owners should make an effort tothe ability to set aside larger amountsshould ensure that their goals and establish their personal goals in the samethan what is permissible for non- wishes are addressed in life and at way they develop their business plans. Abusiness owners. Additionally, providingdeath, including plans for business solid business plan is critical to the long- a customized retirement plan for yourassets. As your business grows, basic term success of a business, and similaremployees will help attract and retainwills or family trusts may no longer attention should be given to your long-termtalent. suffice for the transfer of the business. financial strategy. More sophisticated techniques may be Risk Management necessary to ensure business continuity Tax Planning Adequate attention should be given to aafter death, to mitigate estate taxes, and Recent tax legislation changed the taxrisk management program that considersto potentially provide liquidity for heirs to treatment of various legal structuresthe following areas: life insurance,pay those taxes.businesses use significantly.It is importantdisability insurance, personal property that business owners work with theirThe do-it-yourself drive that helped you and casualty insurance, personal liabilitystart your business may not be enough tax advisor to coordinate the taxation ofinsurance, and healthcare insurance.business and personal income in a way thatwhen it comes to business planning. helps provide efficiency to the business andConsulting with a tax and financial Life insurance can play an integral roleadvisor can help. When selecting a tax the owner. in business planning. One of the most and financial advisor, its important to Investment Planning important and sometimes overlookedseek out a qualified and experienced For most business owners, their businessissues for a business is planning for itsprofessional who places your needs first is their largest asset. And, if they havecontinuation after the owners death,and who shares your values when it extra capital, they may still prefer to investdisability, or retirement. A buy-sellcomes to pursuing your personal, family, it back in the business.Nevertheless,agreement can provide for an orderlyand business goals. prudent planning should be focusedtransition of the business and avoid the on diversification. Asset classes andneed for a fire sale or prevent a transferArticle provided by John D. Williams, CFP, investments must be carefully selected forof the business to family members whoFinancial Advisor, with Stifel, Nicolaus & the owners personal portfolio to offsetmay not be capable of or interested inCompany, Incorporated, member SIPC and New running the company. Key-person lifeYork Stock Exchange, who can be contacted in the concentrated risk of the business. the Valdosta, Georgia office at (229) 293-1125 or insurance can also be used to protect [email protected] 60 SG MAGAZINE| FALL 2019 BUSINESS + CULTURE61'