Building wealth outside the business.
WHY IT MATTERS
Business owners frequently have everything in one place, which is the largest risk they carry.
WHAT CONCENTRATION MEANS
Income, savings and wealth all depending on the same business.
WHAT HAPPENS IF IT FAILS
Everything goes at once.
WHAT TO DO ABOUT IT
Build assets outside the business, deliberately.
WHAT ORDER TO WORK IN
Emergency fund first Expensive debt cleared Then long-term saving
WHY THAT ORDER
Returns on clearing expensive debt are certain; investment returns are not.
WHAT TO ESTABLISH BEFORE INVESTING ANYTHING
What it is for When you will need it Whether you can afford to lose it
WHAT TO BE CAUTIOUS OF
Anything promising guaranteed high returns Anything requiring you to recruit others Anything you cannot explain Pressure to decide quickly
WHY
Those describe most schemes that take people's money.
WHAT TO CHECK ABOUT ANY INVESTMENT PRODUCT
Whether the provider is licensed and regulated.
HOW
The relevant regulator's register.
WHAT TO UNDERSTAND
That higher returns mean higher risk, always.
WHAT TO AVOID
Investing money the business may need Investing everything in one thing
WHAT TO CONSIDER
Pension arrangements, which business owners frequently neglect.
WHY
There is no employer providing one.
WHAT TO ARRANGE
Advice from a qualified, licensed adviser.
WHAT TO TREAT THIS AS
General information, not financial advice.
