Integrating business and personal goals

For most business owners the success of their business drives their personal financial success. Therefore, it is sensible to make sure you have synergized the goals for both so they are maximized.

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Published: July 26, 2010
Updated: February 26, 2016

For most business owners, the success of their business drives their personal financial success. Therefore, it is sensible to make sure you have synergized the goals for both so that they are maximized. The following tasks will help you identify areas that might need more attention:

Managing income and assets

  • Know your current total net worth.

  • Set up a budget and track current personal income and expenses.

  • Set aside liquid assets in case of an emergency.

  • Estimate future net worth, income, and expenses.

  • Manage business assets and cash flow.

  • Have your business valued.

"Manage your income with a view toward reducing state and federal income tax obligations."

Protecting you and your business

  • Review long-term care, disability, liability, and life insurance options and needs.

  • Create contingency and business recovery plans. Read more.

  • Review or establish your buy/sell agreement.

  • What are your personal financial goals? Are they aligned with the direction of the business?

Investment and tax planning

  • Review your portfolio including asset allocation.

  • Set aside money for education funding, if needed.

  • Manage both short- and long-term debt.

  • Consider providing/expanding employee benefits programs.

  • Manage your income with a view toward reducing state and federal income tax obligations.

  • Estimate federal and state taxes on non-earned income.

  • Take steps to proactively manage your future personal and business taxes.

  • Review your business structure to assure it meets your needs.

Estate planning

  • Make a will that includes your personal and business assets.

  • Set up a plan that reduces estate settlement costs and inheritance taxation.

  • Retain or transfer ownership of personal or business assets.

  • Establish business transition plan.

  • Consider the effect of a living will and other documents should you become incapacitated.

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