What should my business financial plan work on?

When you own a business, you want to preserve your business value and plan for your company to grow.

For the Preservation part of your plan, you must think about the following:

• How to invest excess cash. You can put excess cash into your business or invest it outside your business.
• How you’ll handle risk management and insurance planning. You must identify any potential risks to your company, how those risks could impact it, and how insurance can provide your business with financial protection.
• Succession and exit planning. You need to have a solid plan for transferring leadership or ownership of your company to others. 

With the Growth part of your plan, you need to focus on the following:

• Appropriately handling your day-to-day cash flow and putting together a strategy to pay off any debt you have.
• Robust tax planning focuses on finding tax efficiencies and ensuring you use all tax credits and deductions you’re entitled to.
• Putting together a strategy that helps you retain and attract key talent can include options such as an extensive benefits package or yearly bonuses.

What should my personal financial plan focus on?

When it comes to personal financial planning, you need to think about how you will accumulate wealth and how you will protect your wealth.

For accumulation, you need a solid handle on cash management (savings and debt), efficient tax planning, and an investment plan.

To protect your wealth, you need the right insurance (such as life insurance, disability insurance, and health insurance) and a solid estate plan that includes a will and power of attorney.