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The Top 5 Financial Planning Challenges Of Business Owners

The Top 5 Financial Planning Challenges Of Business Owners

| December 19, 2020

At Whittenburg Wealth Partners, we know that it can be tough creating a financial plan for your business. However, as difficult as it may be, it is vital for any business to implement a financial plan that will not only protect small businesses but will also create strategies for growth. 

Below, we have compiled a list of the top five financial planning challenges that we have encountered when developing financial plans for our clients who own businesses. And we have also included some methods that business owners can employ to meet those challenges head-on so that their businesses can thrive regardless of the situation. 

1. Setting Up Favorable Tax Strategies For Your Business

It is no surprise that this may be the last thing that a business owner may do. Business owners are busy developing and running a business. However, it could be the most important factor in developing your financial plan. Paying more in taxes than the amount that you are responsible for will cost you money year after year. Examine different tax strategies that are beneficial for your business, which will free up cash and allow the business to achieve its growth potential. 

2. Plan For The Expected

One day, you will transition out of the business and retire. But how will you achieve this goal? Take a moment and get a general idea of what your retirement will look like for you. Are you selling the business or passing it down to the next generation? When would you like to retire? What type of financial plan do you need to make this a reality? A financial advisor can help you answer these questions and determine which type of retirement plan meets your needs and your retirement goals.

3. Plan For The Unexpected

Let’s face it, 2020 has been hard on all of us. Not only are we worried about the spread of COVID-19, but our whole daily routines have shifted. Our local economies have felt this too. While some businesses in 2020 have survived because they were able to adapt to a new economic state, other businesses have been forced to close. Let 2020 serve as a reminder to us that anything can happen. It is a solid business strategy to prepare for the unexpected and develop a contingency plan that will allow your business to adapt in new circumstances. Perhaps you have an employee that you absolutely could not run the business without? What would happen to your business if you became ill and were suddenly unable to run it? Would your family still receive an income? Luckily, there are insurance policies designed for such circumstances. A professional can help you discover strategies that could help your business stay afloat if the unexpected occurs. 

4. Protect Your Assets

This seems like a no-brainer, but you would be surprised at how many business owners have not adequately protected themselves or their businesses from a devastating lawsuit. Thankfully, there are insurance plans that business owners can purchase to mitigate the financial harm that could come from a lawsuit, such as general liability insurance or professional liability insurance. Investigate what type of insurance will best meet your business needs.  

5. Debt Management And Proper Funding 

When a business is just starting out, it is critical that it have access to capital. But many new businesses do not qualify for traditional, low-interest loans, even if the business has great potential. To receive capital, some new business owners turn to loans with higher interest rates. If sales are slow at the beginning, which very well may be the case, then the business could struggle with repaying their debt while the business is in its infancy. It is a good idea to explore all your options—and even speak to a professional—when you are thinking about raising capital to take your business to the next level. 

We’re Here To Help

We hope that this list helps you navigate some of the financial planning challenges you may come across when creating a financial plan for your business. Don’t hesitate to reach out with any questions or concerns—or let us know what has worked for you and your business.   

If you think Whittenburg Wealth Partners would be a good fit for your financial needs, easily schedule a no-fee, no-obligation virtual appointment or contact us at 801-839-7050 or We look forward to hearing from you!

About Austyn

Austyn Whittenburg is a wealth planner and partner at Whittenburg Wealth Partners, a family-owned and family-operated financial and wealth management firm located in Salt Lake City, Utah. Austyn has 7 years of experience as a wealth planner and spends his days helping business owners, emerging successful families, and their ensuing generations simplify their financial lives and discover meaningful solutions. Austyn received a Bachelor of Science in Finance from Brigham Young University and holds the Certified Financial Planner™ (CFP®) and Certified Business Exit Consultant (CBEC®) credentials, his FINRA Series 7 through LPL Financial and 66 registrations through LPL Financial and Stratos Wealth Partners, and his life, health, disability, and annuity insurance licenses. Austyn is active in his community of Herriman, Utah, where he resides with his wife, Ciera, and two young sons, Grayson and Graham.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

Securities offered through LPL Financial, member FINRA/SIPC.  Investment advice offered through Stratos Wealth Partners, Ltd., a registered investment advisor. Stratos Wealth Partners, Ltd. and Whittenburg Wealth Partners are separate entities from LPL Financial.