Financial professionals

Successful business planning balances three needs

Man sitting at a desk looking at his phone

Every business owner faces the challenge of deciding how to best use available resources to grow their company. But positioning a business for growth takes more than just producing more of a good or service.

It’s also about finding the right balance when setting up plans to protect your business, to provide for your employees, and to take care of your own needs – because neglecting any one of those areas could jeopardize the ability of your business to succeed.

Protecting your business

Even thriving businesses may face adversity. Without the right safeguards in place, what should be temporary setbacks can quickly become serious threats to the health and sustainability of your business.

One of the most significant risks you can help protect your business against is the impact of losing a key employee due to death or disability. The impact on the business is heightened even more if the loss involves an owner. Many successful businesses put buy-sell policies in place to help ensure the business can continue operating when challenges come, helping protect the livelihood of the owners, employees, and their families.

Providing employee benefits and rewards

When structured properly, employee benefits become a powerful and cost-effective way to drive business results. Foundational benefits like a 401(k) plan are critical to attracting and retaining talent, while helping your employees prepare for the future. Targeted benefits for your top talent, like executive bonus plans and split-dollar life insurance, can improve retention and reward them for delivering exceptional business results.

Planning for your own needs

With so much time, energy and passion invested in your business, it can be easy to forget to take the time to plan for your own financial future. And while your business may be the best investment you ever make, it’s also true that not every business succeeds. An over-reliance on your business to provide for you and your family may be putting your future at too much risk. Other factors beyond your control, like a premature death, can also put your family and business at risk, even if your business is thriving.

Effective personal planning helps balance these risks so that you can focus on making your business successful, while knowing that the needs of you and your family will be taken care of. You can take important steps like having sufficient life insurance, helping protect your income with setting aside resources for your retirement, and planning ahead for the future sale or transfer of your business.

Balancing business and personal planning takes a bit of extra effort, but with a bit of guidance from a financial professional, it can help you maximize the value of your business for you, your family and your employees.

This material provides general information that is designed to be educational in nature and is not intended as specific tax or legal advice to any particular individual nor the law of any particular state. Please seek the advice of a qualified tax or legal professional for your specific situation.

Product, product features and rider availability vary by state. Products are issued by AuguStar Life Insurance Company and AuguStar Life Assurance Corporation. Issuer not licensed to conduct business in NY.

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