Retiring Your Business pt 3 – Create A Personal Financial Plan
It might seem odd to you to create an exit plan for retiring your business before creating a personal financial plan. However, if you do it the other way around you might not see exiting as a possibility. With a plan in place you can create action steps in your finances the same way you do in your business.
Here are some of the most common steps:
- Write down your goals. These should be in line with how you plan to exit. If they don’t match find the disconnect. There has to be alignment.
- Create a net worth statement. Don’t worry if what you have is not enough yet. You wouldn’t be the first entrepreneur to start with nothing or less than nothing. But it’s not going to happen on accident. We don’t believe in unicorns here.
- Review your cash flow. One of the greatest ways to “make” money is to save it. Where can you cut back on expenses?
- Create an accurate budget. Your budget is how and where you should be spending money.
- Manage and erase any debt. Don’t turn a blind eye. It won’t go away on its own. Be kind to yourself and then be disciplined.
- Save for your retirement. Tomorrow is today. Yesterday was once 10 years in your future.
- Review your insurance coverage regularly. You may need less or more but insurance protects your finances.
- Plan for taxes. Remember death and taxes are the only two things you can count on in life.
Don’t worry. You don’t have to go through this all by yourself. There are numerous professionals to help you! Profit First is a trusted and recommended resource. You can start by reading the book, find a Profit First professional who specializes in serving a business just like yours, and you might even decide to become a Profit First professional!
Through it all, you’re not alone. Join the Association of Virtual Assistants and create a successful VA where retiring your business will be the dream you hoped it would be!
The Association of Virtual Assistants is here for you today, tomorrow, and at every stage of your career. Join the AVA now to get your support.