Here is a Method That Is Helping Business Owners to Create Wealth
Building a Business Versus Building Wealth

Building a Business Versus Building Wealth

Building wealth through business ownership

I’ve found that many women love the idea of running their own business and embrace becoming self-employed. Whether by starting in party plan sales, working from the home computer, taking on a franchise or helping others in small business; most love the idea of flexibility and family time opportunities that small business represents. There’s also the thought that maybe sale of the business down the track can help pay off debt or even assist with retirement funding.

That said, the market for small businesses has been hardly ideal in the past few years and some are struggling more than ever. Many are still just closing the doors and walking away, amidst much debt and heartbreak.

The reasons for the lacklustre market may be due to external forces:

* Weak economic conditions mean some businesses are earning less so not enough money is coming in

* Tighter lending standards reduces the pool of eligible buyers so it's much harder to find a buyer for the business; and

* Qualified buyers may be waiting for a stronger economy before assuming more risk so there's a better chance they'll make money by buying the business.

In other words, efforts to build a successful business may not always translate to an increase in your own personal wealth.

Click to enter free online comeptitions with She Inspries

One way that may help insulate your personal financial situation from the fluctuating small-business market is by investing outside your company.

Many pour all their profits back into their own company, but external investing can have some important benefits. For example, if you were forced to sell unexpectedly, (perhaps due to illness or relationship changes) your post-business lifestyle wouldn’t the depend 100% on the final price of sale. You might also be better able to withstand low offers if you are in a position to wait for the right buyer.

Eggs and Baskets

Think of it as diversification. We’ve all heard ‘don’t put all your eggs in one basket’ and allocating too much personal wealth to one company, even if it is your ‘baby’ can be a risky proposition. Diversification, or spreading the risk, does not eliminate the possibility of investment loss; however it is a great way to help manage risk.

It’s natural to want to believe that all the love, effort and dedication you pour into your business will help increase the selling price, but there’s always the risk that it won’t. So try and take your ‘owner’s’ hat off and look from the outside in, to see all possibilities and spread the risk and make money from other sources.

Share

Share

Find out about Amanda Cassar

Find out about Amanda Cassar

Guest Writer Amanda Cassar of Wealth Planners Partners

Amanda Cassar of Wealth Planning Partners has a passion for creating financial freedom and believes it's possible for all of us.

Amanda has been involved in the finance and insurance industry since 1991. Her particular passion is making sure all families have adequake risk strategies in place to protext what they're already worked so hard for, and then look to wealth creation for the future.

Amanda has recently completed her Masters in Financial Planning (MFP) and is a Telstra Business Women's Award Network member. She is a mum of two teens, enjoys good food, great wine and travel - and loves living on the beautiful Gold Coast. 

You can find more financial knowledge and wisdom through the Wealth Planning Blog and Wealth Planning Partners Facebook online resources.

Read more...

Read more...

Online Resources for Starting A BusinessOnline Resources for Starting A BusinessHere you can find a collection of online resources about starting and growing your own business.

Come explore these useful sites and share your own ideas with us too.

What You Ought to Know About Financial AdviceWhat You Ought to Know About Financial AdviceWhile women are great at seeking advice and directions we sometimes feel a little daunted about getting financial advice, knowing what to ask and what to look for in a financial advisor.

So we went to our financial guru Amanda Cassar for her top tips on what to ask about, qualifications to expect and building a relationship with a financial advisor. And again, we've got great practical and accessible info for you. Read on....

Facebook Tips for Small BusinessFacebook Tips for Small BusinessMaking the most of the opportunities offered by social media is a challenging prospect for small business. So we thought learning from others who are making it happen sense of the social media world would help all of us!

Here we have a growing collection of interviews with savvy small business owners creating successful businesses on Facebook and useful social media how to articles.

Social Media Tips for Small BusinessSocial Media Tips for Small BusinessWith the continuing growing influence and power of social media we thought it would be a great resource to bring together a series of top tips, stories and interviews about social media so you can grow your small business!

Here we have a growing collection of interviews with savvy small business owners creating successful businesses and useful social media how to articles.

Thinking Very Carefully About Joint Bank AccountsThinking Very Carefully About Joint Bank AccountsJoint accounts, are they the best or worst thing ever invented or somewhere in between?

We caught up with women's finance expert Amanda Cassar to get best tips and advice on whether to have a joint account and if so, how to do it the smart way.

The Secrets to Understanding MoneyThe Secrets to Understanding MoneyLooking for some handy hand online resources to help get your money sorted?

Let Amanda Cassar of Wealth Planning Partners share some great tips and tricks online to make the most of your money.

10 Ways to Get Your Money Working For You10 Ways to Get Your Money Working For YouIt is so funny that while many of us are highly competent in our professional lives, it is so easy for us to neglect personal money management which should be top of mind for us – afterall if you don’t take responsibility for securing your financial future who will? We go through some of the essentials to help you take control of your finances.
My Financial FreedomMy Financial FreedomIt's all well and good talking about financial freedom but to get there you have to know what it means to you - what is financial freedom for one is financial security for another and vise-versa.

This practical how-to article helps you understand and define your own experience of financial freedom.

Use Leverage to Make More Money While Doing Less WorkUse Leverage to Make More Money While Doing Less WorkFind out how you could be using leverage to make your life easier.

These top blogs with business leverage ideas and all the latest leverage tips will help your business become a success. Learn easy tips that will help you improve traffic, earn more money and use your social media effectively. Change your business to benefit you by using leverage to your advantage!

12 Top Tips For Saving Your Business With A Strong Cash Flow12 Top Tips For Saving Your Business With A Strong Cash FlowWinning in the cash flow business and keeping your cash flow up and your business from going up in flames can be difficult. With these 12 top tips staying on top of your business's finances will seem like a breeze.

Make sure your business is prepared for the current economy and become cash flow obsessed!

Search by Keyword

Search by Keyword

Follow SheInspires.com.au on facebook
Follow SheInspires.com.au on Twitter
Delicious
Copyright © She Inspires Life Bondi Junction, NSW
2009 - 2017