Running your own business? You’re in good company. There are one million small businesses coast-to-coast operating with fewer than 100 employees.
Here are six tips for financial success.
1. Target top talent
You want great employees that will help support your business success. These days, steady work and reasonable wages aren’t enough to attract and retain the best talent. Employee benefits can help give you a competitive edge in the marketplace.
2. Find great rates
You want your money to work for you as much as possible. Look for banking solutions that help reduce borrowing costs and that earn the highest possible returns on all your short and long term investments.
3. Find tax efficiencies
Most business transactions–from employee compensation to business succession planning and asset protection–have tax consequences. Understanding and addressing tax implications can make a difference to the success of your business and the growth of your personal wealth.
4. Insure your human capital
Most small businesses have at least one person who is critical to the company’s operations—this could be anyone who helps run the business and is hard to replace. A loss or injury to key personnel could have far-reaching effects on the business’s survival; consider protecting yourself and others with Key Person Insurance.
5. Think future – yours and your business’
Many business owners rely on the sale of their business to fund their retirement and some are concerned with their business continuing after they leave. Combining succession planning with retirement planning can help you enjoy a financially secure retirement–whether you plan to sell or pass the business on.
6. Protect yourself and loved ones
In the case of critical illness, disability, or premature death, the impact on your family’s savings and lifestyle could be significant. Life and Living Benefits insurance products can help mitigate these risks.
Read more on this topic:
Manulife – Being a business owner: Your financial preparedness checklist