By Guest Contributor, Ricky D. Garner | MBA, MetLife Premier Client Group of the Carolinas
Every small-business owner has a unique story to tell about why he or she decided to launch a new company. For some, it’s the opportunity to be their own boss. For others, it’s to satisfy a product niche that no other local business is offering. Still others are thinking big picture and looking to offer something truly innovative that might take off on a national scale. And for some, it’s a combination of all these reasons.
Regardless, once a business has gone through the lean and mean early years and started to establish a reputation for itself – not to mention, a comfort level that it might be around for the long haul – it’s time for owners to give some thought to their long-term personal objectives.
In other words, what would you like to achieve now that the business is up and running? What is the measure of success 20 or 30 
years down the road?
Once the day-to-day questions about business viability have been resolved, it’s important to set personal goals. This will help small-business owners define exactly what they would like to achieve – for themselves, their families and the employees who have helped make the business what it is.
In setting these objectives, it’s important to ask:
Am I working to strengthen my personal finances and build wealth?
Many business owners become so engrossed in running their companies that they inadvertently end up putting their personal finances on the back burner. Although it’s easy to tie up most of your liquid assets in a business, to achieve financial independence and build personal wealth, it’s important to make personal savings a priority. By conducting regular financial reviews, and taking follow-up action as needed, you can help develop and strengthen your personal financial position.
Am I preparing for retirement?
Many tax-deferred, qualified retirement savings vehicles, such as 401(k) plans, are available to business owners and their employees. The retirement plan that is best in a given situation is often determined by the size of a company, as well as the ages and salaries of its employees. In addition, nonqualified plans allow business owners to provide selective benefits for themselves, as well as their key employees.
Have I developed an exit strategy?
Although it’s sometimes difficult to think past any given quarter, it’s important for small-business owners to give some thought to whether the business will be marketable if and when the decision is made to sell it. Developing an “exit” strategy can help provide cash commensurate with the value of the business in the event you choose – or are forced (due to death or disability) – to divest.
Do you want to retain the company within your family?
Your company, like many others, may be a closely held business operated by more than one family member. If you wish to keep your company in your family, it’s important to learn about transfer tax issues and develop a business succession plan that will help keep your long-term goals and objectives on the right track.
Stay Focused
Unfortunately, these questions are not ones that should be asked once and then forgotten. Personal goals and priorities change and develop over time. To make sure the priorities that you established in your 30s are still the priorities you have as you grow older, it’s important to conduct a periodic review of your personal and business priorities. Annual reviews can help ensure your business activities are still consistent with your long-term personal goals and objectives.
[Photo via NASA archives]
