Cash and cash flow, the lifeblood to any small business or family. We all have experienced the feeling of being stuck and frustrated for not having access to cash when we really need it.
Traditional financial planning tends to give away control of our cash flow, whether it’s funding your retirement account, paying off your mortgage as soon as possible, or being in a race to pay off your consumer debt. All of these actions leave us in less and less control of our cash flow each and every single month. But the need for liquid cash to achieve our financial goals has never been greater. With inflation at an all time high and the market fluctuating every single day.
Not to mention that if you own a small business, the uncertainty and the possible turmoil that’s coming down the road, we need to prepare to make sure that we’re able to weather that storm so that we can get through it and be in a better position than we were going in.
But the question is, how do you achieve that goal, especially with interest rates rising each and every single month?
So keep in mind, because interest rates are rising, it’s not necessarily a bad thing. It’s a bad thing if you’re borrowing, and that’s your method of accessing capital in the markets. However, if you’re a saver and interest rates rise, doesn’t that mean that you’ll be earning more interest on your savings?
This is the reason why we help our clients focus on building capital, building liquid cash so that they have access to that money. They don’t have to beg, borrow and steal in order to move forward and to grow their business. They can do it by accessing their own money on their own terms. No questions asked, whenever they want.
There are several reasons why a small business owner would want and need access to capital.
Number one, to run their operation so that they can turn a profit.
Number two, to stay competitive, maybe reinvest in equipment or a plant.
Number three, to hire a new or a key employee to grow their business.
And number four, in general, just to create a higher rate of return on their capital.
In general, having access to capital allows businesses to invest in their business and run it as efficiently as possible. Keep in mind that businesses that have access to their own capital have a much higher success rate than those who don’t have access to their own capital and have to therefore pay for access to somebody else’s capital.
We use specially designed whole life insurance policies designed for cash accumulation to help our clients meet their financial goals, like growing their business without taking on more risk. We do this in creative ways that allow us to integrate key person insurance as well as business succession planning.
If you’d like to get started with the business succession plan, key person insurance or building cash for your business to help it grow and expand, especially in economic turmoil. Visit our website at Tier1Capital.com and feel free to schedule your free strategy session.
Also, if you want to see exactly how we put this process to work for our clients, check out our webinar, The Four Steps to Financial Freedom.
And remember, it’s not how much money you make. It’s how much money you keep that really matters.