Most business owners have the bulk of their net worth tied up in their business. As they become more and more profitable, they pour these profits into improving the business. That makes sense, since that is what they are familiar with, what they have control over, and a place that gives them a high rate of return.
As the business matures, there comes a time where the owner starts to diversify their assets. Either they invest themselves, or they go to an advisor who manages the money for them. It is this area where I see the additional risk being taken.
Risk Profile
By definition, a business owner is a risk taker. Otherwise, they would have never started a business in the first place. When I look at a business owners investment portfolio, the investments tend to be on the aggressive side. But does that make sense? You are already are taking risk in your business, should you be matching that risk with your other investments?
Myopic
Business owners are very myopic. They spend so much time in their business, they rarely work on their business. The are usually unaware of their financial blind spots within their business. The following are some of the areas of risks business owners have:
- Corporate Structure - Impacts both taxes and creditor protection.
- Risk Management - Risk from loss of property or life.
- Taxes - Both Estate and income tax.
- Benefits - Impacts your ability to attract and retain talent.
- Exit Strategy - Can you get the true value of what you built?
We at Macro Advisors feel that each of these areas are important to address, if fact, we call them Pillars of Financial Success!
Building Your Team of Advisors
After identifying opportunities to minimize risk, reduce taxes and increase growth in our Snapshot Report, we begin to work with your team of advisors.
We are not looking to replace your advisors, rather work with your them to identify missing areas of expertise to provide your business with the most powerful tools.
