October is Financial Planning Month 

By Michelle Loredo

October is Financial Planning Month. This holiday is observed to be used as a checkpoint to check your finances and update your financial strategy. We have put together all you need to know and keep in mind while working with your financial plans.

Financial Goals  

You must set both personal and business-orientated financial goals to be financially sound. Your goals should include short-term, long-term and strategically placed benchmarks so you can know how much money and capital you will need in the future. It can consist of taking investing into consideration, expanding your existing small business, reducing debt, paying bills on time, reducing personal and business expenses, saving for retirement and future college tuition expenses.  

Financial Plan 

As a small business owner, you will most likely already have one or are creating one. The plan needs to start where you are financially and where you would like to be. Your financial plan encompasses your goals and an outline that shows how to achieve set goals. It must be clear, concise, actionable and measurable.

Your plan should cover how to manage each goal you have set. For example, retirement plan, college tuition, business expansion, health care coverage for self and employees, assets and liabilities.  

For example, it needs to include risk management, or you may face financial problems. It should also include tax management; so you don’t run into trouble with the Internal Revenue Service

Professional Help 

Creating a financial plan can be intimidating, but the SBDC Network is here to help! We have 14 locations across Southeast Texas to help small business owners. Our business specialists and advisors can help you set business financial goals and show you how to create a viable plan.