Do you Make Financial Decisions in a Vacuum as a Business Owner?

There is nothing more unsettling for a small business owner than trying to make decisions in a vacuum. To realize something needs to be done and to not have the experience, data, research, and information to make wise choices is frustrating to say the least and usually detrimental. To avoid this anxiety with your finances, it is wise to develop an investment strategy by:

Exploring and identifying your unique “money vision.”

A “money vision” is like a map. It assists you in understanding where you are, where you are going, and the ideal routes to take to get there. It has several characteristics. It is unique, because no two people start in the same place or end at the same destination. It’s made up of your values, dreams, goals, and priorities. It has structure because it needs to support and guide you. It creates security. It puts a financial floor under your feet. It assures you that you are headed in the right direction. It has flexibility because life is flexible. Goals change, priorities get reassigned, and dreams get replaced. Exploring and identifying your unique “money vision” creates a matrix from which satisfying financial decisions can be made today and in the future.

Identifying and assigning your current cash flow.

Now that you have your “money vision” firmly in place, it’s time to identify the resources available to make it work. Cash flow is the money you have access to for funding your unique “money vision.” Getting your cash in a position to support your financial priorities involves two steps. The first is to determine the amount of cash flow you have available to use. You can do this by evaluating current income streams, reviewing current spending patterns, analyzing the impact of debt, and measuring cash reserves and liquidity. Leaning into your finances in this way is hard work but doing so creates a clear picture of your financial resources. The second step is to assign available cash flow to support goals in your unique “money vision.” Priorities surfaced and settled on in the process will now give direction to choices like when to invest, where to invest, what to invest and how to invest. Being intentional with your cash flow creates a feeling of ownership and control over the money you make and spend. It helps reduce uncertainty and worry, and results in the potential to improve your financial decisions and the outlook that you have on life.

Creating and executing your investment strategy.

With your “money vision” firmly in hand and your cash flow clearly identified you are now ready to tackle the last stage which is to create and execute an investment strategy. This stage involves determining your risk tolerance, choosing an investment philosophy, and selecting the ideal positions. The key to success in this step is to align your investments with your “money vision.” For some, this may mean simply adjusting your current allocations. For

others, this may require making wholesale changes. No matter which is needed, the choices will be based on and guided by the “money vision” that has been set in place.

At R&R Financial Advisors, we are helping small business owners avoid vacuum-based investing by creating their unique “money vision” that aligns their values, priorities, and goals with their financial choices.

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Investment advisory services offered through Brookstone Wealth Advisors, LLC (BWA), a registered investment advisor.  BWA and Brookstone Capital Management, LLC are affiliated companies. BWA and R&R Financial Advisors, LLC are independent of each other.   Insurance products and services are not offered through BWA but are offered and sold through individually licensed and appointed agents.