You already know how important it is to have a business plan. Without it, how would you know your goals and the specific steps to reach them? However, did you know that you can be even more successful by tying your business plan to a personal financial plan? Since success comes from planning, executing and achieving, tying the two together can create greater results for your personal and business lives.
What is a Personal Financial Plan?
A personal financial plan is another way of describing a personal business plan, and works similarly to your company business plan. It includes your personal goals as they relate to your business career, family and finances.
You create a personal financial plan in many of the same ways that you developed your business plan. In simple terms, begin by writing down your personal mission, core values and ultimate goals. Then break the plan down into the steps you need to take to reach those goals.
Related: This 5-Step Personal Development Plan Made Me a Better Entrepreneur
How to Tie your Business Plan to Your Personal Financial Plan
When tying your business plan to your personal financial plan, lay the two plans side by side and look at areas where the two plans intersect. Are the goals similar? Can they work together?
Look also at the gaps. Where are the two plans not in sync? What feasible strategies can you put into place to close what we call your twin value gaps?
Related post: How Much is Not Knowing Your Twin Value Gap Costing You as a CEO?
Many business owners believe the sale of their business will fund their family’s financial future. However, this is not a solid exit strategy. Coordination of your twin plans, along with discipline and the capital needed at every growth stage offers a more solid blueprint for growth, satisfaction and ultimately, an exit plan.
The average company runs at 73% of its potential. To be more successful, close the gaps while tying your business plan to a personal financial plan. Here are some strategies we’ve defined:
For your business gaps:
- Assess your business’s value now and into the future, if run efficiently.
- Identify high-ROI strategies for consistent growth
- Execute those strategies with discipline and accountability
- Prepare for your exit
For your personal gaps:
- Inventory assets and liabilities
- Specify goals, with specific achievement dates and steps
- Create five buckets of wealth: retirement, children, family legacy, charity and entrepreneurial ventures
- Develop multiple scenarios for success, and consider alternative priorities
- Identify risks and fill gaps
Get Expert Help for Business and Personal Financial Plans from the Association for Enterprise Growth
A successful business and a successful life require careful planning and advice from experts who can help you define your goals, develop strategies, and guide you along your path.
At AEG, our mission is to help create personal and business growth by developing trusted relationships. Our services provide assistance on how to close your twin value gaps, grow your company, exit on your own terms, and build personal wealth, with elite business and financial advisors to mid-market CEOS, and peer-to-peer networking to help you navigate from startup to transition to exit.
Contact us to learn more ways in which we can help.
