SHIFTING YOUR FINANCIAL MINDSET

Becoming an entrepreneur isn’t easy and the ups and downs are not for everyone. As an Investment Advisor, I have spent almost ten years in the financial industry in various roles helping individuals manage their wealth. I have worked at larger corporate firms, but now co-own an independent financial advisory practice called Papillon Financial. My goal as an investment advisor is to make sure my clients are well equipped to understand how this change will affect their retirement, budget, and most importantly their overall lifestyle. Here are my tips for shifting your financial mindset as a entrepreneur. 

Staying Money Smart

Frequently asked. How do you plan to manage your incoming funds? Should you separate your business from your personal checking and savings accounts? Should you use your retirement money to fund your business? If so, how much? Do you reach out to VC firms or a bank, etc.?

When I work with my small business clients our conversation begins with their initial startup costs, current income, and what they will need to maintain their well-being. We create a plan that reflects all of their income and expenses, investments, and what they feel they need over the next one to three years. Depending on the client we initially focus on the one to three year plan because it is manageable and not too overwhelming.

My last resort is encouraging individuals to pull money from their retirement to fund their business. However, if you must, there are strategic ways to do so, which we discuss and set up for our clients. By taking the time to make clear financial projections you will also be able to tell if you need to consider a part-time job to stay afloat.

The separation of your personal and business accounts is important as you become more entrenched in your business. It is very easy to blur funds, which often result in money becoming unaccounted for. When you are determining where and how to seek funding for projects, a good start can be with your local non-profits and/or other programs that might offer free opportunities to source funding, such as the Ben Applebaum Foundation in NYC.  If you can, have your trial pitch round with your friends and family, and approach them in the same way you would an investor to source funding. If your initial start needs the larger funding of a venture capital firm, bank, or other borrowing channel, it is imperative you do your homework. After that funding is received, make sure you have a strategic budgeting plan for how every dollar will be allocated.

How Do I Keep Up With My Savings and “Retirement?”

We often forget as business owners that we let go of all the company support, especially when it comes to retirement and benefits plans.

When we are discussing retirement options with our clients it is important that we encompass an overall investment strategy that makes sense for where they are today. Most people end up leaving their employee sponsored plan at their employer not realizing that it is no longer being properly managed and/or funded.

It is often in your best interest to move those funds into the most appropriate retirement account to continue to build your wealth.  Many of our solo entrepreneur clients, find Individual K’s (Solo 401K’s) beneficial to continue their growth. As they allow for unique borrowing opportunities, and higher contribution allotments.

After the funds are moved into an appropriate account we determine the level of risk they want to take in their investments and build a strategy with them to encompass where their life is going.

Continue to be Courageous, but Smart

As entrepreneurs we dream big, and often throw caution to the wind. However, we need to do a better job at managing our money so that we can continue to build upon that dream and leave the wealth that we want for our families and ourselves.

In my advisory practice we focus on education and have created a wealth education tool called PEAK (Proactively Educating & Acquiring Knowledge) that combines wealth strategy planning with a temperament tool called Personality Dimensions®. This tool will assist you in understanding whom you are with your money, so that you can master steps towards furthering your wealth.

 

Securities Offered Through TFS Securities, Inc., Member FINRA / SIPC, a full servicebroker dealer, located at 437 Newman Springs Road, Lincroft, NJ 07738 732-758-9300Investment Advisory Services offered throughTFS Advisory Services, a division of TFS Securities, Inc.

 

Dana L. Wilson –Managing Partner at Papillon Financial, has a BBA with a concentration in Marketing from North Carolina Central University and her Series 7, 63, 66.  Dana has held various advisory roles, hybrid sales/management positions. After working at Merrill Lynch, she then moved to a boutique wealth management firm located on Wall St. There, she met her now business partner, Shurnette Henry, and with their common vision and passion, founded Papillon Financial. Her diverse background gives her the ability to assist clients in understanding a seemingly complex industry, which helps them to make better decisions about their financial lives.