Business Owners face a great number of challenges. Not only do they have spend time running and maintaining their business, but they also have other crucial concerns such as expanding the business, health insurance, regulation, taxes, as well as taking the time to manage their own wealth. Oftentimes, business owners are forced to choose between the success of their business and the success of their personal wealth portfolio and affairs.
The consequence? Your bottom line can take a blow, so how can business owners best spread their time equally between business and personal financial affairs? Well, you can simply add balls to your juggling act: business owners (of all people) aren’t new to the concept of multitasking. But according to Gary Keller, the author of a very interesting book on multitasking in business, called The One Thing: The Surprisingly Simple Truth Behind Extraordinary Results, this could be doing more damage than good!
Multitasking Business and Personal Wealth
Business owners who are juggling too many responsibilities, from overseeing the company’s operations to managing business growth, marketing and sales, as well as their own personal wealth, can begin to drop one, two or more balls. The consequences for their business and/or their own personal wealth could be potentially disastrous.
John Lohrenz, an LPL financial advisor at JKL Wealth Management in Del Mar, San Diego CA, says: “In an attempt to maintain control of their professional and private financial affairs, many business owners hire the services of people such as accountants to manage tax, an investment advisor to manage their investments and a lawyer to manage their legal issues, etc. Each of these professionals performs an essential service for any business owner, but they all operate and advise independently of each other. This can create confusion and a lack of cohesive advice, which can prove frustrating for the business owner trying to craft the best possible financial plan.”
Frustration is one thing, but John Lohrenz also points out that when clashing advice results in a wealth management strategy that isn’t cohesive, the growth of your company and your personal wealth can suffer.
What is the Solution?
If this scenario sounds all too familiar to you, then your first step should be to get a thorough and comprehensive financial analysis of your business. You’ve got to identify where your business is falling short of its goals: which of its components or systems aren’t working optimally and which are.
For example, if your business is lacking in cash flow, you should scrutinize your debt structure and whether there would be any value to increasing your short-term debt in order to increase cash flow, therefore relieving long term debt, which, in turn can be used if your business goes through lean times.
Don’t do it all on your own either and instead of consulting with many professionals, speak to a wealth management company that will consider all aspects and facets of your business in order to tailor a financial plan that caters precisely to your needs. This will begin with a comprehensive financial analysis and, based upon this analysis, a plan.
Stay Tuned for Part 2 Coming Next Week!
If you have any questions at all or would like individualized investment advice, please contact JKL Wealth Management at:
Phone: (858) 535-1705
Fax: (858) 535-1701
Alternatively, fill out the Contact Form and we’ll get back to you shortly.
731 S. Hwy 101, Suite 2K, Solana Beach CA 92075
Securities and Advisory services offered through LPL Financial, a registered investment Advisor. Member FINRA/SIPC.