Why Business Owners Have A Hard Time Building Wealth

You’re going about your life working as hard as you can to build your business and provide for your family.  While doing so, you’re trying to save money for the future; money you expect to grow and work for you. The problem is when you look back after 5 or 10 years or even a lifetime of work, oftentimes you find your savings, and investments have not been working very hard.  Rather they’re lollygagging, being eroded by fees and producing the results of a disgruntled employee.

Don’t worry it’s not your fault, you’ve been careful, you’ve done what the media and Wall Street suggest, you’ve followed the advice of your CPA and financial planner. That’s what you’re supposed to do, right?  

So why then is it that most business owners get to that stage having scrimped and saved putting off the good life and still never get to the finish line?  In this article, you’ll discover the three major mistakes business owners make along their financial journey.

Failure to recognize the power of controlling cash flow

The problem is you’ve failed to manage your cash flow properly, only because you’re using a system that doesn’t work.  A system like GAAP that is designed to help accountants and the IRS determine how much you owe in taxes. A system that doesn’t show you where the leaks are.  A system that doesn’t show you how to maximize your opportunities. Often times you’re being attracted by the delusions of account balances and gross sales.

It doesn’t have to be that way, through the application of a simple step by step process, usually only utilized by the rich like Walt Disney and The Rockefellers, you too will be able to manage your finances and build wealth.

Invest in yourself; put your money in a wealth-building strategy that has a proven history of providing growth, safety, tax benefits, liquidity, and a death benefit.  A strategy that creates your own banking system, a system that allows your money to grow and allows you to use it at the same time.

Michale a recent client of mine lives in a small town with his wife and two sons.  After five years of starting and building his business, he was now experiencing revenue consistently coming in the door.  He came to me troubled about his financial future and looking for help.

He and I met and after looking over his finances, it became clear what he needed right now was a plan to manage his cash flow.  I suggested we create a cash flow optimization strategy and he agreed.

I determined if he continued doing what he was doing, he would always be wondering where to pull the money from that he needed to run his business.  After helping him create a plan and using no more cash than what was currently being used, he has a clear picture of his cash flow and where the money is located that is needed to help build his business.

I could see the anxiety leave his face!  He said, “this is great, I no longer have to wonder if we’re robbing Peter to pay Paul”.    

Creating a strategy that is easy to follow is simple with a little planning.  Getting a good handle on your cash flow, plugging the leaks and identifying the opportunities at the same time, is one of the most basic and ignored strategies of our time.  If you can choose to control your money in order to know where your cash flow stands at all times………that’s an easy choice.

Failure to recognize predatory hype vs rock-solid principles

The next problem you face is knowing where to invest your money and build wealth.  You haven’t applied a wealth-building strategy and your personal balance sheet shows it.  In fact, most of your wealth is tied up in your business. There are many products you can invest in but too often you give up control and take on too much risk.  When the market corrects or falls so does your revenue, investment portfolio, and sanity.

Let others ride this roller coaster!  You create a solid plan and build wealth systematically.  I call it the Wealth Building Machine. The base is the foundation of your entire plan; it is where your money is safe, grows and offers the least amount of risk with the greatest amount of control.  Each subsequent layer is built a piece at a time with correct allocations.

Cory became a client of mine last year.  He owns a successful construction company, had lost money in the past from bad investments, was currently saving money and was worried about repeating his last investing mistakes.

We looked at his savings account.  I talked with him about changing his mindset from traditional planning to a strategy that works. I showed him the Wealth Building Machine, a simple step by step plan I show all of my clients, to help them understand how to build a foundation and invest in cash-flowing assets layer by layer.

The light bulbs went off, he was elated because the pressure of buying risky investments was gone. Immediately he implemented the plan and was applying a solid strategy building wealth one piece at a time.  He now has more confidence and less stress and is well on his way to creating a lot of wealth outside of his business. His family will be very rich in a few short years.

Once Cory saw the value of a solid strategy built on proven principles, he began to see what he had been taught about money was wrong.  He now has a place for his money to safely grow and has the ability to use that money for other investments.

Failure to have fun shutting the doors

You now have grey hair and wisdom, turning your assets into an income stream that does not run out and transferring assets to future generations is the next step.  Building wealth takes a lot of hard work; make sure your wealth takes care of you when you’re ready to slow down.

Avoid subjecting yourself to the stress of being part of the small group of owners who are able to sale their business profitably. Or relying on Stock Market performance that is scary and uncertain.  This requires creating the correct strategy, a strategy you get right the first time, a strategy that actually allows you to build wealth outside of your business and enjoy slowing down rather than stressing over it.

Gary and Barbara, clients from the mid-west were getting ready to slow down in 3 to 4 years.  They had taken big losses in the market in the dot-com crash of 2000, were scared during the crash of 2008 and were really worried about how they would exit their business successfully.

Between their equipment, savings accounts, a couple of buildings, and a small business, their assets were all tied up in their business.

We talked about their current strategy, they simply didn’t have one but they wanted to avoid running out of money. Currently, they were saving money but no solid strategy.

The plan I built and recommended, they choose.  It gave them peace of mind and a truly comfortable and certain exit from their business.  Now over 80% of their income is guaranteed which covers all their needs, the rest is “fun money” and they’re leaving a legacy of $1.7 million.

The stress they were feeling about “closing shop” disappeared. They now have more income each month than they anticipated, the comfort of knowing they will never run out of money and their kids and grandkids are happy too!

Creating a guaranteed exit strategy allows you to truly enjoy your golden years.  Building a strategy that builds wealth outside your business and turns assets into tax-efficient guaranteed income ensuring you don’t outlive your money and you’re able to leave a financial legacy to your kids is easy.  By doing so, you can now play rather than stress financially when its time to slowing down.

You can avoid the pitfalls that plague business owners in their later years simply by doing things differently.  Now that you know there is a better way, you owe it to yourself and your family to take action.

Build your wealth and leave a legacy by following proven strategies!

Almost everything you hear in the media and you’re being told to do financially is wrong.  The wealthiest families in America have done things differently; they have utilized time-proven strategies dating back over a century.  Strategies used to safeguard and transfer their wealth from one generation to another continually.

The strategies are not secret but again, it’s not your fault you don’t know about them.  Wall Street and the media fail to share what doesn’t serve their interests. Now that you know there is a better way, it’s up to you to change you and your family’s future.

I’m The Wealth Trainer and have spent over a decade of my life studying financial strategies.  With the things I’ll show you, you’ll change your future by getting control of your cash flow faster, create a personalized banking system, build wealth outside of your business, and leave a legacy for generations to come.

If you’d like to watch my FREE training to learn how to build wealth outside of your business…..Click Here.