Whether your business is small or large, paying the bills or smashing it don’t be fooled into thinking that your personal finances are in order because your business is.
It’s a common error and totally understandable, as a business owner you probably employ a series of professionals to keep you on track. You’ll likely have an accountant, maybe a bookkeeper and a lawyer, a business coach and whatever other professionals you need to keep your business on track.
But have you ever asked your professional team what they are doing for your personal situation? Unless you have specifically asked they will not be taking you as an individual, family or couple into consideration when giving advice. They may pass on a tidbit here and there but they are not providing, advice, strategy, administration or project management for you personally.
In fact sometimes sound business advice is in conflict with what you need to do personally 🙉.
So you employ professionals for your business and you keep your business finances in order it might be time to start treating your personal finance like a business too.
- Do the books
- Seek advice
If all your wealth is tied up in your business how will you fare if something goes wrong, a downturn in sales or a disruptive new business?
Whilst building a business asset is a great way to build wealth personally it is always good to take some of the risk off the table along the way – don’t plow all your profits back into the business, pay some to yourself and invest in other areas; property, shares, pay down debt or cash – the right method is different for everyone.
Other areas you may not have looked at in detail is your superannuation or personal insurances.
In fact using superannuation could actually tie hand in hand with your business – but may not have been considered because your personal finances are not the focus of your advice team.
As a business owner you are best placed to start treating your personal finances like a business – don’t miss the opportunity!
“The advice provided on this document is General Advice Only. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this advice you should consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs. If any products are detailed on this document, you should obtain a Product Disclosure Statement relating to the products and consider its contents before making any decisions.”