5 Reasons Why Your Family Business Needs Financial Planning Too (Farm)
Most people think of financial planning as a service that individuals and married couples use to become wealthy or save for retirement. While individuals and married couples do often use a financial planner to reach their goals, family businesses should also be using financial planning services. Businesses can benefit greatly and most family business owners don’t even realise how much the services are needed until it’s too late and a financial loss has occurred or there’s been a death. To help you see the benefits, here are 5 reasons why your family business needs financial planning too:
- A financial planner can help you with key person coverage. Key person coverage allows the business to keep operating in the event that one of the key people can no longer be involved in the business. This type of coverage can replace lost revenue and pay expenses.
- Your business needs a plan in case ownership changes, it goes out of business, or you retire. A financial planner can help things transition easily.
- A financial planner can help you with risk management strategies and protections. When there’s a business involved, there’s always risk involved in some way, shape or form. A financial planner can help you find the right insurance cover for your business, the key people involved with the business and disability insurance. Sometimes unexpected events happen in life and when running a family business, it’s important to make sure both the business and the people involved are financially protected.
- Your business more than likely has assets that also need protected. A financial planner can help you with asset protection, including finding the right coverage for your business.
- Finally, retirement planning should be part of every family business. As key people retire and pass on the business down to younger generations, those who retire should be considering a strategy to ensure they can retire when they want to and how they want to.
As you can see, having a good financial planner is just as important for a family business as it is for an individual or a married couple. Plus, if you’ve been doing all of the financial planning for the business yourself, having a planner will free up time and allow you to focus on running your business.