SELF-HELP

You often hear about wealth management for the rich or high net-worth individuals. However wealth management is not only for individuals but is also applicable for small and medium businesses in managing their assets to achieve their financial goals. Wealth management is about managing your wealth or surplus funds to achieve a financial goal, example, to ensure capital invested is kept intact or the investment risks are well managed at all times. Wealth is defined as your net assets, after deducting your debts or liabilities. Wealth management is about managing your wealth or surplus funds to achieve youra financial goals. Before deciding how your money should be managed, you need to determine the financial situation and financial goals for both you and your business.

To do this you need to understand your business and personal financial goals and constraints. Analyse your business and personal financial position using net worth and cash flow analysis. Assess your business risks and personal risks profile. You need to take into account your personal financial situation because as a business owner, your financial situation is closely tied to the state of your business. Once you have determined your net worth and set your goals, you will need to have an action plan to achieve your goals. Currently, many businesses practise some forms of wealth management through insurance and investment.

A comprehensive wealth management plan should generally include ways to maintain, grown and distribute assets which would involve the following

- Debt and cashflow planning to enable efficient and optimum use of credit for the business.
- Investment planning and management to maintian wealth and ensure adequate returns.
- Insurance planning for business protection ( fire, theft, marine of key-man insurance) and personal protection( death, disabiltiy, critical illnesses and household)
Tax planning to minimise unnecessary cash outflows and ensure efficient cashflow management.
- Retirement and welfare planning for employees to ensure retention of key staff for business continuity. - Retirement and succession planning to ensure that the business can continue to operate smoothly when the business owner leaves the business.
- Estate planning to ensure efficient wealth transfer to successors and beneficiaries.