Business Owners have many challenges. Critical concerns such as taxes, regulation, health insurance, building the business and managing their personal wealth can create less than optimal conditions to actually spending time running their business.
Of course, that can hurt the bottom line. So how can business owners manage the juggle? Multitasking is the way many believe that the most amount of work can be accomplished, but while the term “multitasking” is relatively new, its roots are not.
Researchers have been studying the concept of humans doing more than one thing since the early 1900s, according to Gary Keller, author of the book The One Thing: The Surprisingly Simple Truth Behind Extraordinary Results.
But the fact is, juggling too much at any given time results in a dropping of some of the balls. When business owners are faced with multitasking everything from the company’s operations and sales to its business growth and their own profit, a few balls can eventually start to drop.
John Lohrenz with JKL Wealth Management says, “Often business owners have professionals that they’re working within the areas of investments, insurance, taxation, and law but they’re all working independently. So, sorting through all the recommendations made by these experts becomes a burden to the business owner rather than the helpful resource they’re meant to be.
Lohrenz also points out that a lack of a cohesive strategy can be very damaging to the company’s growth and future.
The first important step is a comprehensive financial analysis. Understanding which parts of the business are performing optimally and which are not is critical.
If you’re looking for a way to increase cash flow, examine your debt structure and the balance between short- and long-term debt. Give consideration to possibilities of spreading out short-term debt to increase monthly cash flow by utilizing long-term debt in lean financial times.
Work with a wealth management company that can specifically address your needs with a comprehensive financial analysis and plan.
“The solution is using a financial planning software application that allows business owners to get a complete picture of their wealth.” Lohrenz says his company has a partnership with eMoney and “through an online system called, Wealth Vision, business owners can manage their entire wealth picture from one single access point.”
“Business owners can see all of the things that are important to their total wealth package,” says Lohrenz.
The powerful system enables business owners to watch their net worth grow and manage all of their bank accounts from one place with transactions updated daily. A full reporting system helps the business owner clearly see income statements, net worth, balance sheet and asset allocations.
It’s also important to recognize and deal with financial problems as soon as they occur. Delaying will only make the situation worse. Having access to an online educational library like the one that is built into Wealth Vision, provides business owners the opportunity to quickly get helpful resources and information with just a few clicks.
“This system helps business owners reduce the time they spend searching for information because it houses valuable resources in one easy-to-use location and can be accessed from any computer with their login information,” says Lohrenz.
Running your own business can be both highly rewarding and challenging. Lohrenz says business owners need to remember to “invest in themselves”. Taking time away from the company and having the opportunity to enjoy life, family, friends, and hobbies is vital. “It’s one of the key tools for business owners that allows them to keep a clear perspective and to continue to persevere,” says Lohrenz.
The downtime is easier to take when you can rest easy that you have a cohesive financial plan in place and you can clearly see it working for you with just a few clicks of a button online.
Editor’s Note: Securities offered through LPL Financial, member FINRA/SIPC