Financial Planning
for
Business Owners
By
Neeraj Chauhan, CFPcm
20-03-2014 www.thefinancialmall.com 1
20-03-2014 www.thefinancialmall.com 2
Best Company
20-03-2014 www.thefinancialmall.com 3
Some Pitfalls
No Written
Plan
Common
Money Pool
No
Investment
Planning
Insufficient
risk
management
No exit
strategy
20-03...
Planned v/s Reactive
20-03-2014 www.thefinancialmall.com 5
Me & My
20-03-2014 www.thefinancialmall.com 6
Investments Concentration
Business
Real
Estate
20-03-2014 www.thefinancialmall.com 7
20-03-2014 www.thefinancialmall.com 8
Passing Baton
20-03-2014 www.thefinancialmall.com 9
Ignorance can lead to fall
20-03-2014 www.thefinancialmall.com 10
20-03-2014 www.thefinancialmall.com 11
Make a Plan
20-03-2014 www.thefinancialmall.com 12
Peter Drucker said that Profit is the
benchmark of success in business. But it
is well recognized that planned revenues
wi...
Keep it Separate
Personal
Business
20-03-2014 www.thefinancialmall.com 14
It’s your Business-- & your Life
Pay yourself a salary
Redeployed money should either be treated as loan
or Equity
Take ou...
Leverage in Limits
Monthly
Debt
Payment
or EMI
Monthly
Income
Debt to
Income
Ratio
20-03-2014 www.thefinancialmall.com 16
Track Expenditures
20-03-2014 www.thefinancialmall.com 17
Diversify
Physical
Assets
• Real Estate
• Gold/Silver/Commodity
• Vehicles
Financial
Assets
• Equity
• Debt
• Foreign Curr...
Cover Yourself & Assets
20-03-2014 www.thefinancialmall.com 19
Retirement
It’s not uncommon for
business owners to
assume they will never
retire.
41% people have plan
for sustaining the...
Plan your Exit Strategy
Conceptualize
and Document a
Succession Plan
Groom the next
generation
Avoid
uncertainty and
confl...
Thank you
20-03-2014 www.thefinancialmall.com 22
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Financial planning for business owners

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

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Financial planning for business owners

  1. 1. Financial Planning for Business Owners By Neeraj Chauhan, CFPcm 20-03-2014 www.thefinancialmall.com 1
  2. 2. 20-03-2014 www.thefinancialmall.com 2
  3. 3. Best Company 20-03-2014 www.thefinancialmall.com 3
  4. 4. Some Pitfalls No Written Plan Common Money Pool No Investment Planning Insufficient risk management No exit strategy 20-03-2014 www.thefinancialmall.com 4
  5. 5. Planned v/s Reactive 20-03-2014 www.thefinancialmall.com 5
  6. 6. Me & My 20-03-2014 www.thefinancialmall.com 6
  7. 7. Investments Concentration Business Real Estate 20-03-2014 www.thefinancialmall.com 7
  8. 8. 20-03-2014 www.thefinancialmall.com 8
  9. 9. Passing Baton 20-03-2014 www.thefinancialmall.com 9
  10. 10. Ignorance can lead to fall 20-03-2014 www.thefinancialmall.com 10
  11. 11. 20-03-2014 www.thefinancialmall.com 11
  12. 12. Make a Plan 20-03-2014 www.thefinancialmall.com 12
  13. 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. 20-03-2014 www.thefinancialmall.com 13
  14. 14. Keep it Separate Personal Business 20-03-2014 www.thefinancialmall.com 14
  15. 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 20-03-2014 www.thefinancialmall.com 15
  16. 16. Leverage in Limits Monthly Debt Payment or EMI Monthly Income Debt to Income Ratio 20-03-2014 www.thefinancialmall.com 16
  17. 17. Track Expenditures 20-03-2014 www.thefinancialmall.com 17
  18. 18. Diversify Physical Assets • Real Estate • Gold/Silver/Commodity • Vehicles Financial Assets • Equity • Debt • Foreign Currency 20-03-2014 www.thefinancialmall.com 18
  19. 19. Cover Yourself & Assets 20-03-2014 www.thefinancialmall.com 19
  20. 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. 20-03-2014 www.thefinancialmall.com 20
  21. 21. Plan your Exit Strategy Conceptualize and Document a Succession Plan Groom the next generation Avoid uncertainty and conflict 20-03-2014 www.thefinancialmall.com 21
  22. 22. Thank you 20-03-2014 www.thefinancialmall.com 22

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