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Small Business


Small business owners face risks that others don't.

Their future and regular weekly income depend on the success of their business. Their investment also depends on the success of their business.

But their business is likely to be

  • In a single geographic area,
  • In a single industry, and
  • Almost entirely dependent on its owner.

There is little protection available against downturns in the economy. Quite simply, all their eggs are in a single basket.

If all that wasn't enough, small business owners face a number of other issues.

  • There's never enough cash to put any extra aside for a rainy day.
  • "The business is my retirement plan."
  • There's never enough time in the day to plan for next week, let alone 15 year's time.
  • "I'll re-mortgage the house to cover the…… [shortfall/expansion plans]." You can enter your own favourite here.
  • "I never get sick, why would I get extra insurance?"
  • "We building our business as a legacy that we intend to leave behind for our mokopuna."

If you recognise yourself in any of the above, you may not have financial control. You don't have a guaranteed weekly wage, but you do have a particular lifestyle, for better or for worse. To that end, you have a responsibility to yourself and your family to take the extra steps required to ensure you plan and control your finances.

Unfortunately, unexpected events are bound to occur. Whether it's a health or an economic issue, it is possible to safe-guard against potential losses. At the very least, it's important to take time with your adviser to understand your potential risks.

The best people to discuss your options with include your accountant, bank manager, business mentor, or other business financial adviser.