Financial planning for business owners who want to have a planned approach towards their work and personal finance.

1. Financial Planning
for
Business Owners
By
Neeraj Chauhan, CFPcm
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3. Best Company
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4. Some Pitfalls
No Written
Plan
Common
Money Pool
No
Investment
Planning
Insufficient
risk
management
No exit
strategy
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5. Planned v/s Reactive
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6. Me & My
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7. Investments Concentration
Business
Real
Estate
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9. Passing Baton
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10. Ignorance can lead to fall
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12. Make a Plan
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13. Peter Drucker said that Profit is the
benchmark of success in business. But it
is well recognized that planned revenues
will be greater then unplanned revenues
and planned expenses will be less than
unplanned expenses and so planned
profit will be greater than unplanned
profit. So if Profit is the benchmark of
success than Peter Drucker is telling us to
engage in Planning.
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14. Keep it Separate
Personal
Business
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15. It’s your Business-- & your Life
Pay yourself a salary
Redeployed money should either be treated as loan
or Equity
Take out at least 20% of profits from firm to invest
Calculate ROI on capital ploughed back in business
Prepare a net worth statement for self and do
Business Evaluation
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16. Leverage in Limits
Monthly
Debt
Payment
or EMI
Monthly
Income
Debt to
Income
Ratio
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17. Track Expenditures
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18. Diversify
Physical
Assets
• Real Estate
• Gold/Silver/Commodity
• Vehicles
Financial
Assets
• Equity
• Debt
• Foreign Currency
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19. Cover Yourself & Assets
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20. Retirement
It’s not uncommon for
business owners to
assume they will never
retire.
41% people have plan
for sustaining the
lifestyle after
Retirement.
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21. Plan your Exit Strategy
Conceptualize
and Document a
Succession Plan
Groom the next
generation
Avoid
uncertainty and
conflict
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22. Thank you
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