Financial planning can be challenging, especially when you’re self-employed. Juggling complex tax implications, unpredictable income streams and the limited time available in your busy day can make it even more daunting.
Adapting to Fluctuating Income Streams
Canadian Certified Financial Planner Jason Hare is the founder of Cornerstone Wealth Planning, a prominent wealth management company headquartered in Kingston, Ontario. With over two decades of experience, Hare has a command of a wide range of financial specialties, including equities, wealth creation, fundamentals-based investing and business valuations. He is a trusted guide for clients pursuing their financial journeys, from personal financial planning to entrepreneurship.
One of the most challenging adjustments for individuals transitioning from a steady paycheck is an uncertain cash flow. “When cash flow becomes less predictable and more irregular, we can assist in managing it effectively,” says Hare. “By offering insights into personal cash flow management, we empower business owners to make more and achieve more. A robust financial plan is a crucial ingredient for entrepreneurial success.”
Overcoming the Fear of the Unknown
For millions of professionals, self-employment is a means of pursuing personal and professional fulfillment by doing what they love. This freedom and flexibility also comes with a degree of apprehension, especially in the early months and years. When you are your own boss, there’s no safety net. You sink or swim based on your own efforts, the market appeal of your ideas, and a certain amount of good fortune.
“Stepping into an unfamiliar environment with no playbook can be intimidating,” says Hare. “This is where a Certified Financial Planner plays a pivotal role, by providing the necessary guidance and a comprehensive financial roadmap. We ensure proper record-keeping, provide step-by-step guidance with compensation planning, and advise on profit retention. We take a holistic approach to entrepreneurship.”
Seeking Out Mentorship
Charting your own entrepreneurial path doesn’t mean that you have to go it alone. “There truly is no better resource than people who have had your personal experience and worked through the challenges that came with it,” says Hare. “It’s not just okay to ask for help – it’s actually smart.”
By finding mentors and building a community that supports you, you have the opportunity to gain access to a wealth of knowledge that can prove invaluable to your business success.
Providing Context to Your Investments
“You can find a lot of opinions online on the best ways to invest, but working with an advisor who truly understands your values and wants to help you achieve your goals is very different from relying on Internet keyboard warriors for guidance,” Hare explains.
As many financial advisors tend to say, the way you approach investing can be just as important as the investments you choose. By contextualizing investments with the help of a professional, investors open themselves up to more financial options and make better-informed decisions.
“Many young investors in their 20s and 30s often focus very heavily on their investment choices, instead of focusing on their greatest asset: time,” says Jason Hare. “My advice is to benefit from the compounding power that time gives you, rather than searching for the ‘perfect’ investment.”
Financial planners play an essential role in helping prospective entrepreneurs navigate the complexities of finance and achieve their business goals. These professionals possess the experience and knowledge to assist entrepreneurs in making sound financial decisions, planning for the future, and maximizing their chances for success.
The author, Dr. David K Simson is a trained radiation oncologist specializing in advanced radiation techniques such as intensity-modulated radiotherapy (IMRT), image-guided radiotherapy (IGRT), volumetric modulated arc therapy (VMAT) / Rapid Arc, stereotactic body radiotherapy (SBRT), stereotactic radiotherapy (SRT), stereotactic radiosurgery (SRS). He is also experienced in interstitial, intracavitary, and intraluminal brachytherapy.