Many small business owners place all their faith – and life savings –in their business. There’s another way. As we recover from the impact of COVID-19 on our economy and our lives, there’s never been a better time to take a fresh look at your money, reset your goals and renew your plans for the future.
For business owners, it’s a great time to start thinking beyond your business – to how your personal finances are tracking and what you might need to do to get or keep things on track. It’s easy to focus on your business finances – but all too often entrepreneurs neglect their own savings and wealth creation as they pour everything they have into their enterprise. This can be problematic as fewer than 5% of small business owners get owners close to or matching what they initially thought their business was worth1.
It’s hard to build wealth when your salary is small
More than 2 out of 5 small business owners have a taxable income under $35,000 a year4. In addition to this there’s no doubt that Australia’s entrepreneurs are massively underinvesting in their own super – which is a big risk if your business sale doesn’t go as planned.
Below we have pulled together some top tips on how you can build your wealth.
If you would like to discuss your businesses financial future call us today Phone (08) 6225 5150
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1 https://www.afr.com/wealth/superannuation/the-mistakes-smes-make-when-it-comes-to-super-20160202-gmjo8u
2 http://www.superannuation.asn.au/ArticleDocuments/359/1803-Superannuation_balances_of_the_self-employed.pdf.aspx?Embed=Y
3 https://insidesmallbusiness.com.au/finance/one-in-four-small-business-owners-not-making-any-superannuation-contributions
4 https://insidesmallbusiness.com.au/finance/one-in-four-small-business-owners-not-making-any-superannuation-contributions
5 https://www.asx.com.au/documents/resources/2017-asx-investor-study.pdf?_ga=2.190522607.53036989.1499842294-253307695.1499842294
6 https://www.smallbusiness.wa.gov.au/blog/super-what-super
7 https://www.mlc.com.au/personal/retirement/am-I-on-track
Source: MLC
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