Financial Planning for Business Owners

By Kayla Hult, MBA – Vice President & Wealth Management Advisor

With my background as a Commercial Lender, I have had the privilege of witnessing firsthand the essential role that both small and large businesses play in driving economic growth. From supporting young startups in their initial stages to facilitating expansion strategies for established enterprises, I have developed a deep appreciation for the diverse challenges and opportunities that businesses contend with as they navigate and grow within their industries.

One of the most important aspects of owning a business is having a firm grasp on the overall financial picture. Whether the business is a new startup or has been operating for years, it is vital for the company and its owner(s) to maintain good financial health. A comprehensive financial plan ensures that the professional and personal goals of business owners and entrepreneurs are adequately aligned for long-term success.

We diligently assist business owners in several key financial planning areas, including:

1. Succession Planning and Exit Strategies: ‘Do you have a succession plan in place?’ Assist business owners in developing strong succession plans to smoothly transition leadership and ownership within the company or devise effective exit strategies to maximize value when selling or transferring the business.
2. Tax Optimization: ‘How can I exit my business in a tax-efficient manner?’ Implement tax-efficient strategies tailored to the unique circumstances of the business and its owners, maximizing tax advantages and minimizing liabilities across various scenarios, including succession, expansion, or sale.
3. Wealth Preservation: ‘How can we leave a legacy?’ Devise comprehensive wealth preservation strategies to safeguard assets and protect against potential downturns or unforeseen events, including asset protection, insurance coverage, and estate planning.
4. Retirement Planning: ‘Do we have enough money to retire?’ Develop customized retirement plans aligned with the business owner’s goals, considering factors such as desired lifestyle, retirement age, and legacy objectives, while optimizing tax-deferred savings and investment strategies.
5. Diversification and Asset Allocation: ‘How do I protect my asset against market volatility?’ Guide business owners in diversifying their investment portfolios across different asset classes and industries, balancing risk and return to achieve long-term financial objectives while mitigating concentration risk associated with the business.
6. Employee Benefits and Compensation: ‘How can we provide benefits to our employees?’ Advise on designing competitive employee benefit packages and executive compensation plans to attract and retain key talent, while also maximizing tax advantages for both the business and its employees.
7. Financial Education and Communication: ‘What services do you offer?’ Provide ongoing financial education and transparent communication to empower business owners with the knowledge and confidence to make informed decisions, fostering a concerted relationship built on trust and accountability.

Central Trust Company is dedicated to empowering business owners with the knowledge, resources, and personalized guidance they need to achieve their goals, both personally and professionally. Whether navigating complex succession planning, optimizing tax strategies, or preserving and growing wealth for future generations, we are here to support your success.