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Building Value Outside your Business

Building Value Outside your Business

June 13, 2023

Business owners, do you realize that the key to your financial security could well lie beyond your business operations? Amidst fluctuating market trends, creating an external wealth portfolio becomes not just a smart move, but a necessary one, especially for small and mid-sized businesses. Here are three tried-and-true steps to help you forge an independent financial path outside your business.

1. Unravel the True Worth of Your Business

Before venturing out, let's start at home. Understanding the real value of your business is the first step towards strategizing your financial growth. Often, business owners tend to estimate their business worth based on market hearsay, competitor comparisons, or even sheer optimism, which may lead to overestimations.

Avoid this pitfall! An inaccurate value could derail your plans for external financial growth. Collaborate with a financial professional or us at StatonWalsh to conduct a precise Calculation of Value. This vital information will empower you to create a focused and realistic financial blueprint, aiding in wealth accumulation both inside and outside the business. After all, the clearer the starting line, the smoother the journey to the finish line.

2. Diversify, Diversify, Diversify

The old adage, "Don't put all your eggs in one basket," rings true in wealth-building too. Diversification is universally recommended by seasoned investors as a stable growth strategy. With the rise of self-service investment tools, diversification has become more accessible than ever.

However, always approach with caution. Despite the ease of access, ensure your diverse portfolio aligns with your long-term goals. The financial market can be enticing with its highs and lows, but history has shown us that disciplined investing, particularly with guidance from a professional, can ensure long-term success and peace of mind.

3. Be Tax-Smart

Wealth-building is not just about accumulation but also retention. And one significant pitfall that could erode your wealth is taxes. For instance, if your company operates as a C corporation, you're likely subject to double taxation, reducing your financial resources to cultivate wealth externally.

Moreover, the labyrinthine US Tax Code could inadvertently lead to overpaying. Engage a professional to minimize your tax liabilities legally, thereby freeing up capital for outside investments and accelerating your journey to financial freedom.

Your Financial Future Starts Now

Our mission is to empower business owners like you to envision and prioritize their financial objectives, taking into account their businesses, employees, and families. If you're ready to discuss your future goals and explore practical strategies to realize them, we're just a conversation away. Feel free to reach out to us at your earliest convenience. Your journey to financial security and success starts here.

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The information contained in this article is general in nature and is not legal, tax or financial advice. For information regarding your particular situation, contact an attorney or a tax or financial professional. The information in this newsletter is provided with the understanding that it does not render legal, accounting, tax or financial advice. In specific cases, clients should consult their legal, accounting, tax or financial professional. This article is not intended to give advice or to represent our firm as being qualified to give advice in all areas of professional services. Exit Planning is a discipline that typically requires the collaboration of multiple professional advisors. To the extent that our firm does not have the expertise required on a particular matter, we will always work closely with you to help you gain access to the resources and professional advice that you need.

Any examples provided are hypothetical and for illustrative purposes only. Examples include fictitious names and do not represent any particular person or entity.