Lincoln Financial Group has shared three financial planning tips for small business owners to help them gain a competitive edge in the marketplace.
“In some ways, the needs of small businesses are no different than any other. But when it comes to financial planning, small business owners need to take a more holistic approach to address the unique needs of their business and their employees now and in the future,” said Daniel Prisciotta, founder and president of Equity Strategies Group and a registered representative of Lincoln Financial Advisors. “That means thinking through the right strategies and solutions available to small business owners including retirement, benefits and life insurance to help them be successful in any stage of their business.”
ATTRACT AND RETAIN TOP TALENT
Exceptional employees help support a small business owner’s success. But today, steady work and a good wage are not enough to attract and retain the best talent. Over half of employees agree that the benefits their employer offers influence their decision to join the company. And, 87 percent say they are more likely to enroll in benefits that they are familiar with and educated about — citing health care, dental, vision and retirement savings plans as those of most interest. Offering competitive employee benefits and providing comprehensive education around those benefits gives an edge as an employer of choice in today’s competitive marketplace. Executive benefit strategies using life insurance can help attract and retain leaders within the business.
THINK ABOUT RETIREMENT – FOR YOU, YOUR BUSINESS AND YOUR EMPLOYEES
As a small business owner, you may be so focused on the day-to-day that you forget to plan for what’s ahead. Financial security is top of mind for many Americans with 86 percent of employees focused on saving and planning for their future.1 It is important for small business owners to understand the retirement needs of their employees and executives because doing so can boost employee satisfaction.
Retirement plans are especially valuable to Millennials and Gen-Xers, who believe an employer-sponsored retirement plan will be their top source of income in retirement.2 By providing a retirement savings plan to employees, small business owners can distinguish themselves as competitive employers who care, with the goal of helping employees save for retirement so they can achieve their retirement income goals.
But retirement planning isn’t just for employees. Small business owners should think about planning for their own secure retirement, as well as that of their key executives. Incorporating supplemental retirement strategies using life insurance and solutions, like annuities that can help provide a stream of income that can’t be outlived, can help owners and their executives achieve the retirement income goals they envision.
PROTECT YOUR BUSINESS, YOUR EMPLOYEES AND YOUR LOVED ONES
Small business ownership comes with a great amount of responsibility – for the business, for your employees, but also for yourself and your family. And many aren’t prepared with the right plan in place should something happen. In the case of critical illness, disability or premature death, the impact on a small business owner’s family savings and lifestyle could be significant. Business owners also face the financial risk associated with the loss of an essential employee, such as an owner, a partner, a top executive or a member of the organization with unique talents, experience or skills that are crucial to the prosperity of the business. Life insurance and disability insurance products can help mitigate these risks and protect your personal and professional interests. Life insurance can also help small business owners in their succession plans. With today’s longer lifespans, annuities can also be a useful solution when planning for a retirement income that needs to last for up to thirty years, or more.
“Small business owners need to be able to see the forest through the trees. A financial advisor can help by incorporating these tips into a comprehensive business plan to improve the probability of business owners achieving their vision and goals for a successful future,” added Prisciotta.
Information for this article was provided by Lincoln Financial Group, which provides advice and solutions that help empower people to take charge of their financial lives with confidence and optimism. Learn more at LincolnFinancial.com.
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