Financial Planning for Business Owners

Financial planning is key to setting up small business owners for for success.


Financial planning is a fundamental aspect of small business management that provides a roadmap for success, helping owners make informed decisions, manage resources efficiently, and navigate the challenges of entrepreneurship.

As a small business owner, you are used to juggling many responsibilities so it is not a surprise that planning for your retirement is one of them. It can be a difficult task to undertake and it can result in peace of mind to have a financial advisor to help.

Many business owners say they want to set up a 401(K) plan because it is what they are most familiar with. However, after looking at their situation and the options available, a plan such as a SEP IRA, a SIMPLE IRA, or an individual 401(k) plan becomes a viable option.

Really, there are four types of retirement plans that small-business owners might consider:

  1. Simplified Employee Pension Plan (SEP IRA)
  2. Savings Incentive Match Plan for Employees (SIMPLE IRA)
  3. Self-Employed 401(k) plan
  4. 401(k) plan (better for larger companies given setup costs, administration, fiduciary responsibilities, etc.)

Each of these plans have different characteristics including the ability to cover employees, contribution limits, and administrative responsibility so understanding how your business is structured is important.  While there are many benefits of setting up a retirement account for yourself and your business, your employees and family members will also benefit by having the opportunity to save for the future. A Capstone advisor is the person to help you determine what type of plan is best for you and your business.

Also, being a business owner means great earning potential, but you are usually the last one to be paid.  At Capstone, we look at cash flow and budgeting to help smooth out the ups and downs of income flow.  Not only do we understand from our experience of helping business owners, but from our own personal experience in business ownership.

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