5 financial planning tips for small business owners, self-employed and entrepreneurs
If you are a business owner, entrepreneur or are self-employed then your finances are likely to be more complex. Business owners spend the majority of their time and effort focusing on the day-to-day running of their business and do not have much time to address their finances properly.
Effective financial planning for business owners can provide clarity, reduce risk, and support long-term growth. Below are some practical financial planning tips that small business owners may find helpful.
Write a business plan
A business plan is a key financial planning tool that outlines:
Your business model
Financial goals and objectives
Target market and pricing strategy
Funding requirements and future plans
A well-structured business plan helps you monitor performance, manage stock levels, and make informed pricing decisions. It is also essential if you need to apply for business funding or a loan, as lenders will expect to see detailed financial projections.
If you need to apply for additional funding or a loan then having a business plan is essential.
2. Check you have the correct insurance policies in place
Many business owners do not have adequate insurance cover in place to mitigate business risks.
Many business owners that we work with do not have adequate cover in place for business risks. Protecting against risks will help make sure your company runs smoothly.
At Borealis Financial Planning, we can help you to set up income protection insurance. This is designed to replace a portion of your salary should you be unable to work due to illness or injury. This payment can continue until retirement. The premiums are often affordable, yet very few individuals consider taking out an income protection policy.
When a business partner dies, the value of their share in the business is included in their estate and distributed according to their will. The beneficiaries might not be interested in running the business and the business might not have funds to buy the deceased partner’s share from their family. Business protection is an effective way to help keep continuity in the business. It is a life insurance policy that provides funds to the business which can be used to purchase the remaining shares from the estate. The cover is combined with an agreement between the partners on how the remaining shares should be bought and distributed amongst the remaining partners.
At Borealis Financial Planning, your financial adviser will work with you to determine the highest risks to your business and will let you know which policies will help you to protect yourself and your business.
3. Take Financial Advice
Many small business owners are preoccupied with the day-to-day running of the business and making sure their clients are happy with products and services. This means small business owners have very little time to focus on business finances and a financial plan.
Financial planning is the key to business success. At Borealis Financial Planning, our business financial planning service could add value to your small business. It will save you time and give you peace of mind knowing that your business finances are in order.
The financial plan should be reviewed regularly against the business performance to check the business is on track. Reviewing current performance will allow you to identify strategies for growth.
Find out more about our small business financial planning service
4. Have an exit strategy
Selling or transferring ownership can be a complex and time-consuming process. You need to make sure you have planned the sale in advance and allowed time to collate all financial records that a potential buyer will require. Having the business finances in order will help show how profitable the business is and can increase the valuation.
As above, an insurance policy can facilitate an exit in the event of death.
Prior to and during a business sale, a financial adviser can help you to develop and execute an effective exit strategy.
5. Managing your retirement
After selling your small business, you may have significant financial assets but little experience in managing your own assets. Your financial adviser can create a bespoke investment management plan for you and advise you on the most suitable retirement plan for your circumstances.
Your investments can be tailored to create a monthly income for you, if necessary, to replace the income you used to receive from your business.
Contact us today to book a no-obligation financial review meeting
The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.
Please note that advice with regard to exit strategy planning may involve the referral to a service that is separate and distinct to those offered by St. James's Place.
SJP approved 11/03/2026