Owning a business comes with endless challenges, and for most of our clients, it’s a learning experience. However, if you don’t know about the pitfalls to avoid, you could potentially make devastating errors.
In this short video, you’ll discover four common financial mistakes business owners make.
If you have any questions, the CGN Advisors team is here to help. Reach out today for a free consultation.
Transcript
Being a business owner means juggling a lot of responsibilities, and while you’re focused on building something meaningful, it’s easy for personal financial planning to take a back seat.
I’m Chad Chase with CGN Advisors. Over the years, we’ve worked with many business owners and have seen some common financial mistakes that can create real problems down the road. In this video, I’ll walk through four of the most frequent ones we see and why they matter.
Mistake #1: Delaying Retirement Planning
The first financial mistake we see business owners make is pushing retirement planning off until later. Instead, they just focus on growing their company and assume they’ll get all they need for retirement from its eventual sale.
Now, there’s a chance that the sale of your company can fund your retirement, but there’s also a chance it won’t. Markets change, buyers back out, and businesses don’t always sell for what they expect. Even if your business is thriving today, it’s still important to plan for retirement like you won’t rely solely on the sale.
Mistake #2: Lack of Asset Diversification
The second financial mistake we see business owners make is not diversifying their assets.
Many business owners pour endless energy into their companies, so they end up pouring all their financial resources into them. Even if you’re confident in the future success of your company, this is an enormous gamble. Successful businesses can unexpectedly go under, and if yours does, you’ll be left with nothing. Diversifying outside of your business helps build financial stability no matter what happens.
Mistake #3: No Succession Planning
The next mistake we often see is business owners have no succession plan. Whether you want to sell your company or pass it down to the next generation, you need a succession plan. Without one, you risk unexpected leadership gaps, operational issues, and unnecessary stress for you, your team, and your family.
Succession planning isn’t always simple, but it doesn’t have to be overwhelming. It just starts with a conversation, and we can help.
Mistake #4: Managing Finances Without Support
The last mistake we see is trying to manage everything alone. If you’ve built your business from the ground up, you’re used to figuring things out yourself. But financial planning is one area where outside perspective makes a big difference.
The right financial advisor can help you with tax planning, cash-flow analysis, risk management, retirement and succession planning, and estate and legacy strategies.
When you work with CGN Advisors, we coordinate with your CPA, attorney, and other advisors so your planning isn’t done in isolation.
Final Thoughts: Start Planning Before Challenges Arise
Owning a business comes with more than enough to think about, so it’s easy to overlook some of these areas until they become a problem.
Taking time to plan now can help you feel more prepared later, whether you’re thinking about retirement, succession, or simply how to make your finances work smarter for you.
If any of these points have hit home, we’d be glad to have a conversation. To schedule a meeting, please call our office at 785-340-3434.
Thanks for watching.