Broker Check

Employee to Owner

So you're considering taking the plunge to being a business owner. Very exciting! Of course with great opportunity comes great responsibility as you know. How can you know you are well prepared financially for this gearshift? Our 3 step transition process makes sure you have assessed your personal finances and are well prepared.

1. Goals Alignment

Why are you considering becoming an owner? It could be a very personal and deeply rooted dream. It might be employer driven. It could be a unique opportunity you were invited into. Understanding the reasons why allows you to be more strategic with money related decisions.  

What are your reasons?

  • Opportunity with current employer? 
  • Side hustle you believe can turn into full time business?
  • Job Dissatisfaction?
  • Recently received large payout/lump sum?
  • Seeking better work/life balance
  • Seeking better alignment with gifts & values
  • Future business equity and wealth

Who is with you in this critical decision and unique season? Naming your trusted and wise inner circle is critical in making these types of transitions and receiving encouragement in the inevitable ups and downs you will experience. We believe no owner or entrepreneur should be without a coach to help provide perspective on this journey.

2. Resource Assessment 

Take a hard look at your finances to assess the impact of becoming an owner--both short and long term. We run a cash flow analysis and long-term forecast, answering:    

  • How healthy are my emergency reserves?
  • Am I prepared for lesser cash flow if required?
  • What's the impact on my retirement and other long term savings goals?
  • What is my personal investment/liability?
  • Is it wise to use the equity in my house or retirement funds?
  • What are the "what-if's" that can derail my plan?
  • What could be the costs (both financial & non-financial) if I don't do this?
  • What is my biggest financial concern or fear?
  • If being an owner isn't a net positive, how will I know and what will I do?

3. Benefits Analysis

It's also important to consider other benefits that don't show up on your balance sheet:  

  • What's the impact of losing my current employer benefits?
  • Do I have certain benefits with my current employer that I can/should keep?
  • What's my health insurance plan moving forward?
  • Does being an owner change my overall insurance needs/coverage?
  • Should I purchase group or individual coverage for these needs?
  • How do I handle debt payoff during this time?
  • Are there other "what if" variables to consider in this transition?