aura wealth advisor
06 Oct

The Challenges of Small Business Wealth Management

On: 6th October, 2015   //   By: admin

Understanding the Four Phases of Small Business Wealth Management for Strategic Planning

The management of a small business requires a high commitment level, and you are often juggling multiple roles on a constant learning curve. If you’re in the early days of your business, it may be all you can do to manage your critical tasks for today. However, making time for small business wealth management is extremely important for you and your future.

Today, take some time to intentionally consider your strategies for long-term growth and, eventually, financial independence. Small business wealth management takes into account the immediate situation of your business to organize it for ongoing success and as an investment for your future security.

It’s ideal to familiarize yourself with the four stages of small business wealth management so that you can begin organizing your goals with these periods of growth in mind. Here is a quick summary of each step of the process:

Accumulation: One of the four challenges for small businesses is putting the systems and processes in place that result in a saleable business. You must also have the pieces in place to ensure financial security for the business and quality employees to carry out your goals for the business.

Transition: In the transition phase, you locate a buyer and determine a fair value for the business. You and the buyer will negotiate on the terms of the business sale and then transition your customers and your employees through the change in ownership.

Independence: An exciting but unfamiliar phase is introduced in independence. You will take some steps to protect your wealth from the sale of the business and you will want to review you entire investment portfolio. It is a time of adjusting to life without the business and enjoying your independence.

Legacy: When you have reached this phase, you are determining your legacy through such decisions as making gifts to charity or passing wealth on to your family and friends. You might make plans that minimize the likelihood of family division or make decisions about who will lead and who will follow in the management of your wealth.

Like most small business owners, you have poured time and effort into the creation and growth of your company. Even if you are in a stage where selling your business seems too far in the future to consider, now is the time to think about it. Creating the processes and goals that make a saleable business are best accomplished from the beginning.

At Aura Wealth Advisors, we work with businesses like yours to create plans for small business wealth management. You have worked hard to build your business, so now it’s time to take steps to ensure that you reach your goal of financial independence and a legacy that is meaningful to you. Call us today to begin the conversation.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>