Small Business Owners

1. Why do I need a financial plan if I already have a CPA?
A CPA focuses on your past and present taxes. A financial planner looks forward—seeking to help you set long-term goals, manage cash flow, plan for retirement, postion your business, and prepare for transitions. The two work best as a team.

2. How can I separate my business and personal finances?
Start by creating separate accounts, paying yourself a structured salary, and keeping distinct budgets. A planner can help develop systems that aim to reduce risk and improve financial clarity.

3. What types of retirement plans are available to small business owners?
Options include SEP IRA, Solo 401(k), SIMPLE IRA, and traditional 401(k) plans. The best one depends on your income, employee count, and long-term goals.

4. How can I reduce taxes through financial planning?
Strategic planning around retirement contributions, expense tracking, entity structure, and compensation can all impact your tax liability. This is where tax planning and financial planning intersect.

5. How much should I be saving outside of the business?
Don’t keep all your eggs in one basket. A general rule is to pay yourself regularly and invest at least 15–20% of your income into personal savings or retirement accounts.

6. What is succession planning, and when should I start?
Succession planning is preparing your business for a smooth transition—whether to family, employees, or a buyer. Ideally, start 3–5 years before your intended exit, but earlier is always better.

7. What happens to my business if something happens to me unexpectedly?
Without a plan in place (buy-sell agreement, key person insurance, documented procedures), your business and loved ones could face chaos. Part of succession planning is building that contingency.

8. Should I sell my business or pass it to family?
That depends on your goals, your family’s interest and ability, and the business’s financial health. A planner helps weigh the emotional and financial factors involved.

9. What’s the difference between a buy-sell agreement and a succession plan?
A buy-sell agreement is a legal contract dictating what happens if an owner leaves, becomes disabled, or dies. A succession plan is broader and includes leadership training, valuation, and timing of the transition.

10. How is my business valued for succession or sale?
A business valuation can be done via income, market, or asset-based methods. A planner works alongside valuation professionals to help position your business for the highest possible value.

11. How do I fund a buyout if my successor can’t afford to buy me out right away?
Installment sales, seller financing, or life insurance-funded buy-sell agreements are common tools. Your planner can model different scenarios based on your needs.

12. What’s the tax impact of selling my business?
There are capital gains taxes, possible depreciation recapture, and more. The structure of the sale (asset vs. stock) affects how you’re taxed. Planning ahead helps you minimize what you owe.

Retirement Planning – SEP IRAs, Solo 401(k)s, defined benefit plans
Cash Flow & Budgeting – Profit-first systems, expense audits
Tax Planning– Entity structuring, estimated taxes, deductions
Succession & Exit Planning – Sell vs. transition, valuation prep
Insurance & Risk – Key person insurance, liability coverage
Business/Personal Integration – How to blend business planning with personal wealth building