People who earn income by working as an employee have a pretty straightforward financial situation. Though it does take careful planning to be able to finance your retirement years while crafting a robust legacy, you don’t have to ask yourself what is going to happen to your job after you retire or pass away. That is something that your employer has to think about.
If you are the owner of a business things are quite a bit different. You will often hear financial planning attorneys say that it is a good idea to map out a plan for the future early on in your life. This is absolutely true for everyone regardless of what you do for a living.
However, when you are a business owner the decisions that you make today are going to be impacted by your long-term intentions. So it is extremely important for small business owners to set financial goals from the outset because how you intend to exit from the business is going to impact your ongoing decision-making processes.
For example, if you intend to sell the business at some point in time to finance your retirement years you may proceed differently than you would if you are going to leave it to your children. If you want the business to stay in the family over multiple generations you may invest more in the infrastructure than you would if you simply intended to sell the business.
Long-term planning is key when you are a business owner. If you would like some professional guidance as you look toward the future, simply took a moment to arrange for a consultation with a good estate planning lawyer.
Ryan, Hicks, Cumpton & Cumpton LLP is a member of the American Academy of Estate Planning Attorneys.