Many clients come to Modera needing help with their personal financial lives. But a great number of our clients are also independent entrepreneurs, small business owners, or medical professionals who own a private practice. And although they typically have CPAs, bookkeepers, and business attorneys to help them compute their taxes, cut the checks, and deal with legal issues, they may not be addressing the bigger picture and the common financial challenges involved with business ownership.

Over the next year I’ll be addressing specific financial challenges pertaining to business owners.

Let’s talk about a few of them now. In this article we begin with some of the top ones.

Delegating Responsibility

If you’ve built your business on your own sweat equity you may find it hard to delegate key tasks to others. Will they take care of those tasks as well as you do? Do they know all the ins and outs that you know?

Even if your answer is “no, not yet” the fact is, if you want to sell your business or transfer it to a family member one day, it’s never too early to bring trusted staff members up to speed on all the nuances, freeing you up now to focus on your unique talents and associated core responsibilities. Then, when the time comes for you to sell or retire, you’ll have the peace of mind of knowing that your business is maintaining the value you worked so hard to achieve. A Modera adviser can help you understand the financial benefits of delegating.

Planning for Expansion

If you’re aiming to expand your business, knowing just when to take on debt and how much can be tricky. Too much debt can logjam your cash flow. Too little can shortchange the resources you need to invest in needed equipment, technology, and human resources for it to grow at a healthy pace. Your Modera team can evaluate both the critical timing issues as well as the amount of debt that makes sense based on your resources and your business goals. We’ll also help you understand the bank’s requirements for cash flow on debt vs. equity, so you can get the funding you need when you need it.

Understanding Tax Implications

Tax laws change constantly – and that can affect how much your business is paying. If your tax professional is only looking at your tax situation once or twice a year, you may be missing out on tax-advantaged strategies that can benefit your business now and over the long haul. A tax-savvy Modera financial adviser will look into your tax situation holistically, offering suggestions that can help you save more instead of paying more to the IRS.   We can also consult with your CPA and/or tax attorney to ensure that all our recommendations are coordinated and aligned with your best interests in mind.

As I mentioned, these issues are just a few of the many business owners face. Coming over time will be additional articles covering business-focused topics I hope they will be useful to you. As always, your Modera team is here to support your entire financial life, both personal and professional. If you have any questions or want to run any ideas past us, please don’t hesitate to get in touch.

Modera Wealth Management., LLC is an SEC registered investment adviser with places of business in Massachusetts, New Jersey, Georgia, North Carolina and Florida. SEC registration does not imply any level of skill or training. Modera may only transact business in those states in which it is registered or qualifies for an exemption or exclusion from registration requirements.

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This article is limited to the dissemination of general information about Modera’s investment advisory and financial planning services that is not suitable for everyone. Nothing herein should be interpreted or construed as investment advice nor as legal, tax or accounting advice nor as personalized financial planning, tax planning or wealth management advice. For legal, tax and accounting-related matters, we recommend you seek the advice of a qualified attorney or accountant. This article is not a substitute for personalized investment or financial planning from Modera. There is no guarantee that the views and opinions expressed herein will come to pass, and the information herein should not be considered a solicitation to engage in a particular investment or financial planning strategy. The statements and opinions expressed in this article are subject to change without notice based on changes in the law and other conditions.

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