Tailored Advice to Amplify Your Business Journey

 

As a business owner, your primary focus is often on the growth and success of your enterprise. However, it’s crucial to remember that the goal of your business endeavors is to enhance your personal and family wealth. Balancing the demands of your business with your personal financial goals can be challenging, but with the right strategies, it’s possible to achieve both.

Business owners in Canada face unique challenges when it comes to wealth management and our focus is to overcome these challenges together with our guidance. Below are some common challenges that we see regularly that we work together to overcome:

 

Business Structure, Liability and Balancing Act

 

• Choosing the Right Entity: Corporation, Partnership, Sole Proprietorship, or LLC.
• Liability Concerns: Personal liability implications of each business structure.
• Debt Management: Balancing business and personal debt for financial health.
• Cash Flow Management: Ensuring consistent cash flow for stability.

 

 

Preparedness & Protection

 

• Emergency Funds: Importance of having a financial safety net.
• Asset Protection: Strategies to shield personal and business assets from liabilities.
• Key Person Protection: Safeguarding business against loss of key individuals.
• Long-Term Goals: Setting and achieving business and personal financial goals.

 

 

Investments, Growth and Planning for the Future

 

• Investing in Your Business: Creating a growth strategy and investing in employees.
• Revenue Diversification: Reducing reliance on a single product or service.
• Key Person Protection: Safeguarding business against loss of key individuals.
• Long-Term Goals: Setting and achieving business and personal financial goals.
• Family Involvement: Deciding on family roles in the business and its impact on wealth management.

 

 

Personal Wealth Strategies

 

• Compensation Planning: Determining how to pay yourself effectively.
• Investment Diversification: Using surplus cash to diversify investments.
• Retirement Planning: Creating diverse sources of retirement income, for example, RRSPs, TFSAs, Individual Pension Plans (IPPs), Retirement Compensation Arrangements (RCAs), or the sale of your business or real estate, is essential for a secure future.

 

 

Tax Structure and Succession Planning

 

• Timing is Crucial: Starting to plan early is important and implementing exist strategies at the time is important.
• Succession Planning: Developing a clear exit strategy for business continuity.
• Tax Strategy and Estate Plan: An overarching tax strategy that encompasses the structure of your business, income treatments, and succession planning can optimize your financial outcomes. Efficiency in wealth transfer to the next generation is important and there could be different strategies, such as Estate Freeze, Insurance, Trusts, etc., depending on whether the business will be taken forward by family or by outside buyers.

 

 

For a personalized approach to your wealth management needs, don’t hesitate to contact us. Pharus Wealth Advisory Group is committed to understanding and addressing your unique challenges.