Pushing forward with business growth, with no time to think about big picture issues like protecting your wealth, planning for change, or someday exiting the business?
While this is the reality for many time-squeezed entrepreneurs, it can ring especially true for women business owners, who often also juggle caregiver roles, or face life events that can impact their company, financial and personal health.
That’s why financial experts at a recent Scotiabank Women Initiative C-Suite Series event urged women to take actions, today, to establish personal and business financial plans. That way, they can manage their growing wealth strategically, prepare for future life transitions, and protect what they’re building.
Fortunately, the Scotia Wealth Management panelists agreed that women are well-positioned to do so. They just need to start now, and seek out the right supports.
Pause to consider your financial and non-financial needs
“Although most entrepreneurs are focused on growing their assets, it’s important that you take the time to align every aspect of your financial life, to support your personal and professional goals,” explains Jennifer Quattrociocchi, Scotia Wealth Management’s Vice President, Partnerships & Priority Segments. “A holistic approach to wealth planning should take into account the business milestones, life transitions, and unique challenges you might face.”
“As women, we’re not just business owners but we’re also often caregivers and we can face different life transitions, with complex nuances,” adds Luzita Kennedy, Vice President, Advanced Planning and Services. “We help clients look at all these variables and connect them to form a cohesive but flexible plan.”
She and co-panelist Holly LeValliant, Estate and Trust Consultant at Scotiatrust, as Scotiabank professionals with a passion for helping women build financial security, have assisted countless women in navigating the financial planning, tax, and estate and trust challenges on everything from business sales to health emergencies, to relationship crises and end-of-life planning.
“There are many ‘life moments’ that have financial impacts we should prepare for,” explains Holly. “And, it’s important to recognize these events have many emotional aspects, requiring us to balance the financial and non-financial elements as we plan for a woman’s various life transitions.”
Take advantage of the ‘gift of time’
Holly notes that a business sale or transition is among the predictable events that many entrepreneurs postpone making essential plans: “Have you identified successors, and have you had open conversations with those persons, and others impacted, so that your expectations are known and everyone can take the right steps to prepare?”
Luzita agrees, noting that, once a business owner has identified their preferred business transition options, they can ensure the company is in a state of readiness, from a people, structure, and tax perspective. “This isn’t about pulling the trigger today, but rather looking at the ‘art of what is possible’ and then putting things in place to make it happen later, even if life throws you a curve ball.”
Whatever life event could be in a woman’s future, Luzita encourages clients to, “Take advantage of the ‘gift of time.’ If you start planning today, when there is no emergency, you can try different things. If you keep deferring these decisions, life events may occur suddenly – like a company purchase offer or a personal health emergency – and you may have to act quickly and miss out on the benefits of planning ahead.”
Taking care of the important basics today – including business succession and business contingency plans, updated personal estate plans, including will and powers of attorney – will help an individual navigate future events and make thoughtful legacy decisions.
“Our clients typically appreciate this chance to pause and reflect on what is meaningful for them, what legacy they want to leave behind, and how can they plan to achieve that,” observes Luzita.
Start with small, actionable steps
Jennifer, Holly and Luzita recognize that it may feel overwhelming for an entrepreneur to address all the risks and variables, including the unimaginable challenge of becoming ‘suddenly single’, when the financial and emotional complexities of divorce can make it difficult to continue operating a business.
“The key is to be realistic and start small when making your wealth plan. Tackle the most urgent issues, and keep moving forward to build on your plan. Then, update it each year, like an annual tune-up for your car,” advises Luzita.
“You can start by simply meeting with your wealth advisor and going through your key documents, to double check how you own things and identify any gaps,” notes Holly.
Find support and delegate what you can
The panelists also emphasized the importance of women seeking the right supports to plan for – or manage during – times of change.
“As women, it’s often assumed that we can take care of everyone and everything, and we expect ourselves to do it all perfectly. However, it’s okay to acknowledge that you need some help,” says Luzita. She often suggests that clients arrange services to assess and plan specialized care for aging parents, or engage a financial planner to help prepare for personal life transitions.
“Surround yourself with people who have your back,” points out Holly. “If you reach out to your Scotiabank Commercial Banking relationship manager, they can connect you with people and resources geared to your needs. Whatever your circumstances, ‘there’s a specialist for that’, and we can help start those conversations.”
“That’s why The Scotiabank Women Initiative C-Suite series is so relevant,” adds Jennifer. “By bringing together industry experts to share insights on key topics for women leaders, we can help them increase economic opportunity, and success, now and in the future.”
While acknowledging that some women entrepreneurs may have fallen behind in making their wealth plans, Luzita reflects that she’s confident they can put the right holistic plan in place: “Generally, as women we are very good at multi-tasking, we prepare for the risks we face, and we communicate well to ensure everything is clear. With clients, I see that once a woman puts her mind to it, you can’t stop her. And, once they put those plans in place, they feel such peace of mind, and can get back to growing their business.”
Although crafting a holistic wealth plan may sound like a big task for a busy, time-pressed entrepreneur, such a comprehensive strategy to handle life’s ‘what ifs’ is well within reach, when they make some time, take small steps, and build a support team that appreciates their unique financial and non-financial needs.
