Why do you do what you do?
Ask 5-10 people and compare answers. You’ll be surprised at how many people don’t connect them to their future lifestyle!
You will hear things like:
It’s what I went to school for
I love to (fill in the blank)
I'm passionate about (another fill in the blank)
I’ve always wanted to own my own company
I would submit that those answers reflect only today’s motivators and a short-term perspective.
Maybe a better question is What's your end-game? Then answers should sound something like “I want to have enough to live as I want to live in retirement.”
Connecting today to your future requires a longer-term perspective. While we all dream about life in retirement, most of us aren't great at actively preparing for it. Consider this: 64% of Americans either don’t think their savings are on track or aren’t sure, according to the Federal Reserve’s “Report on the Economic Well-Being of U.S. Households in 2020.”
The average 55-64 head of household had a net worth of $212,500. A $1 million nest egg provides approximately $40,000 to live on for 20 years. It's easy to conclude that the person with $212,500 will probably not live as they want to.
Even business owners are notorious for not planning far enough ahead. Ownership changes are driven more by unplanned events than the owner's decision, as brokers or bankers will confirm.
So what should owners be doing now?
Prepare a long-term forecast that combines your business and personal wealth to understand the difference between where you are and what you want your endgame to be.
Acknowledge your team may not have all the answers and engage outside experts to optimize systems, financial performance, and legal/tax planning.
Empower your team with the information and authority to improve performance and reward their success.
Data2Profit provides the business analysis and financial management expertise to drive productivity, sales, and profits. We also partner with Kanketa, a provider of specialty solutions, to help you run your business “in balance", operate safely, and pay the lowest possible taxes.
To learn more, click on the button below to schedule a time to chat.
Magically yours,
Lynn
