Best Financial Tips for Business Owners

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Managing a business can be overwhelming. Without sound financial priorities, even fast-growing businesses can fail. Fortunately, a financial planner in Scottsdale, such as ARQ Wealth, can help.

Take steps to safeguard your business by establishing a secure foundation that supports the unique financial and retirement goals that you have set with yourself and your family.

The ARQ Wealth team shares the following financial and income planning tips that can make the difference between success and failure. We know that you are busy running your business and the complexities that go along with that position, so we are here to share a few quick tips that can be easily reviewed and evaluated versus your current situation.

Tip #1: Have Cash When You Need It

Growing businesses can hit a wall when seasonal changes, recessions, supply shortages, and natural disasters interfere with a revenue stream. 

Don’t put yourself in a position of liquidating investments or assets to keep your business afloat. If you borrow money, be sure it is part of a forward-looking plan to increase revenue rather than a reaction to a shortfall. A reliable way to keep your business resilient and flexible is to have enough liquidity to keep your business running for a few months in a worst-case scenario. 

Tip #2: Keep Your Eye on the Fundamentals of Your Business

Your business will not succeed financially if it does not achieve the basic objective of meeting customer needs. Evaluate the return on investment for your financial decisions, such as investments, marketing expenditures, cost-cutting measures, and purchasing decisions. Consider the long-term impact of your choice and ask yourself if they make sense in terms of your business model. 

Tip #3: Budget for Taxes

When considering your revenue and expenses, it is surprisingly easy to overlook the chunk you owe to state, federal, and city taxes. Budget monthly or quarterly for your tax obligations. If you use financial strategies to reduce your tax obligations, be sure that you run those by highly-qualified tax and financial planning experts so that you will not be in legal trouble and incur penalties down the road.

Remember to file on time and make necessary estimated tax payments. If you are unsure about the process or investment management tax planning, you can reach out to a comprehensive financial planning expert at ARQ Wealth today.

Tip #4: Invest in Growing Your Business

If your business is doing well, you could keep it as it is and enjoy the windfall. A better long-term strategy is to use some of the business profits to expand or upgrade your business. Reinvesting profits can be a game-changer for your business, particularly if you make changes that impact cash flow. With how competitive the landscape currently is, if you aren’t constantly adapting and improving, it’s easy to get swept away by the competition.

Tip #5: Keep Your Personal House in Order

Don’t devote all your financial resources to your business at the expense of your financial health. Businesses can fail through no fault of their owners. If you need to start again, be sure you have resources to devote to rebuilding. Have a realistic understanding of how much you plan on paying yourself and any other owners within the business to make sure that you are clearing enough funds to support your lifestyle (mortgage, car payments, credit card bills, etc.).

Tip #6: Plan for the Future

The assumptions you made when you started your business might not hold forever. Your financial plan should be able to anticipate contingencies and adjust to them. A financial advisor can help you identify warning signs and financial opportunities in advance. This leads us to our final point in the below section.

Tip #7: Leverage Professionals

While you are busy running your business, keeping up with your staff, dealing with clients, it can become extremely easy to lose track of what’s happening in other key areas of your business. It’s not easy to balance every single task of running your business and stay on top of the best financial and retirement strategies.

That’s where we come in – at ARQ Wealth, we have been helping business owners plan for their unique financial and retirement goals for over 20 years and we are currently offering a no-cost no-obligation financial planning session to look over your current situation and make recommendations to set you up for success.

Unlike some of the larger competitors, we don’t just offer cookie-cutter solutions, but instead, provide comprehensive financial and retirement planning services that encompass, but are not limited to investment management, tax planning, retirement planning, estate planning, and specific advice geared towards business owners.

Choose ARQ Wealth, Fee-Only Financial Advisors in Scottsdale, AZ

It is never too early to plan for the financial future of your household and business. Contact ARQ Wealth at (480) 214-9572 for a free review. You can also click here to learn more about our no-cost no-obligation financial review. Get back to doing what you do best while running your business and let us help you get your financial and retirement planning on track.

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The opinions expressed in this blog post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual. It is only intended to provide education about the financial industry. As always, please remember that investing involves risk of loss of principal and capital. ARQ Wealth Advisors, LLC is a registered investment adviser with the U.S. Securities and Exchange Commission. Advisory services are only offered to clients or prospective clients where ARQ Wealth Advisors, LLC and its representatives are properly licensed or exempt from licensure. No advice may be rendered by ARQ Wealth Advisors, LLC unless a client service agreement is in place. Likes and dislikes are not considered an endorsement for our firm.