Hartford Business Journal

www.HartfordBusiness.com • May 7, 2018 • Hartford Business Journal 21 EXPERTS CORNER Financial wellness goals for small business owners By Allison Standish-Plimpton W hether you're a small business owner entering your 20th year in business or kicking off a grand opening, a sound financial plan is essential to any businesses' success and profitability. Here are some tips to help you achieve your financial goals this year and beyond: Manage your debt The start of a new year is an op- portune time to review your debt. Refinancing or applying the "snowball" strat- egy — making larger payments toward the debt with the highest rate — are solu- tions to consider. Track your credit Fostering a good credit score as an individual and a business is imperative for your company's growth. Lenders will look at your personal score when it comes time for possible business ventures, and building business credit can lower insurance premiums or help you get approved for low-rate loans. Assess your payments, loans and accounts to identify where you can make changes that will bump your score to the next level. Know your options Looking to ap- ply for a new loan or invest in growth financing? Small Business Administra- tion (SBA) programs are specifically designed for the small business owner, offering longer terms, lower pay- ments, interest rate caps and flexible repayment plans. Keep personal and business finances separate Maintaining separate financial plans for your individual and business expenses is crucial when it comes to tax- planning pur- poses. The easiest ways to keep these entities separate include opening personal and business check- ing accounts, getting a business credit card, or establishing your company as an LLC. You'll be grateful you took these steps when it comes time to file. Have a rainy-day fund All business owners, no matter the size of their company, should plan for the unexpected with a rainy-day fund. Small business owners (especially those within their first few years of operation) should try to lower their expenses, save more often during high-earning periods and assess their investment options beyond the stock market. Create a budget for greater return on investment Keep an eye on your expenses to en- sure a greater ROI for your business. By continuously tracking and evaluat- ing expenses, a small business owner will be able to identify where they can make a change. If you're able to keep your expenses low, you'll find higher margins and greater returns. Treat yourself as an employee While retirement may seem far away, small business owners should take great care to plan for their fu- ture. Small businesses have a range of retirement plans to choose from, whether they're a partnership, LLC or corporation. Once it's time to pack up shop, you'll be ready to enjoy a well- planned and well-earned rest. Allison Standish-Plimpton is KeyBank's senior vice president and business banking team leader in the Connecticut and western Massachusetts markets. HARTFORDBUSINESS.COM POLL LAST WEEK'S POLL RESULT: Is having gigabit-speed internet important to you or your business? NEXT WEEK'S POLL: Should out-of-state companies be able to buy Connecticut water utilities? To vote, go online to hartfordbusiness.com BIZ BOOKS Tips from successful women By Jim Pawlak "disrupters — Suc- cess Strategies from Women Who Broke the Mold" by Patti Fletcher (Entrepre- neur Press, $21.99). Fletcher's research found that, while suc- cessful women have many things in common, one thing stands out: Not one of them thinks they are "victims" because they're not members of "the boys' club." They're disrupters who realize that "business" needs to be played like a game where they make up their rules — which consider conscious and un- conscious bias. When they're making their rules, they look inward to define what success looks like based upon their self-defined purpose. They also don't "man up" by trying to mimic male counterparts. Nor do they "do what they're supposed to do" or use "I'll show them" as motivation. Disrupt- ers make themselves shine by demon- strating that gender has nothing to do with talent, skill and creativity. Example: My friend Erin Lindsey has a Ph.D. in biochemistry. She began her career teaching at a university. She quickly decided that she wanted to "do what she was teaching." She took a biochemist job in the corpo- rate world; her self-determined path led into de- veloping cardiac surgery devices. Her 130-plus patents showed that she outperformed her colleagues; she became the chief technology officer of a medical-device subsidiary of 3M. Semi-retired now, Lindsey consults with medtech firms and university research teams. The chapters tell the stories of many can-do women like my friend. Disrupters seek work-life flexibility not work-life balance. Fletcher makes personal and professional choices based upon her day-to-day priorities. She states, "I live my life, pursue my goals, and find a way to weave what I need and want to do around each other." Disrupters are make-it-happen women. They don't question their competence when presented with an opportunity. They "take the job and figure it out as they go." They play to their strengths and use those of oth- ers to develop collaborative teams. 16.7% No 83.3% Yes READER COMMENTS: "As more and more business is done electronically and the size of the data being transmitted grows, it will be critical to have the fastest internet connection to succeed." "Fast, reliable internet is essential for business, entrepreneurs and CT's business infrastructure." "As long as it is at a reasonable cost." Allison Standish- Plimpton Jim Pawlak Book Review Maintaining separate financial plans for your individual and business expenses is crucial when it comes to tax planning purposes.

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