In uncertain times—think pandemics, economic volatility, and disruptive technologies like artificial intelligence (AI)—one thing is certain: if you don’t have control over your business and personal finances, you’re setting yourself up for failure.
For business owners, especially those who have built successful companies over decades, it’s easy to fall into the trap of treating their business like a personal piggy bank. After years of sacrifice, once the profits roll in, spending escalates and the rewards feel well-earned—luxuries, family travel, club memberships, second homes. But what if your business is decimated by something beyond your control and the profits disappear?
We’ve seen it time and time again.
You can’t control the economy. You can’t control a pandemic. You can’t control whether AI will transform your industry. What you can control is how prepared you are for uncertainty—and that starts with diligent planning, careful spending, and diversification of your assets.
Running lean, especially in good times, isn’t about being cheap. It’s about staying agile and keeping your options open. A strong balance sheet, healthy cash reserves, and strategic personal investment outside the business are lifelines during a downturn.
Consider the story of a family-owned company that had thrived for 25+ years. The owner, nearing retirement, was ready to sell. But the business was the cash cow—not only for him personally, but for multiple family members and households.
Unfortunately, the business had been run to fund a lifestyle, not to build transferable value. The financials were a mess, personal and business assets were entangled, and no succession plan was in place. The owner balked at paying taxes on business earnings, refused to relinquish control, and underestimated the complexity of an external sale.
In the end, a multi-million dollar buyer walked away, and the business was left in limbo—with no clear path forward.
Many business owners minimize reported profits to reduce taxes. It feels like savvy financial management in the short term. But in reality, it reduces the company’s valuation. For every unreported dollar of profit, owners may lose three to seven dollars in sale value.
Worse, as the business becomes the sole source of income—and covers everything from household expenses to health insurance and vehicles—it traps the owner. The business must keep performing indefinitely, or the entire family suffers.
This approach may feel sustainable in the moment. But when it’s time to exit, either voluntarily or due to unforeseen circumstances, it becomes painfully clear how exposed the business and the owner really are.
Whether you’re one, five or fifteen years from selling your business, now is the time to begin shifting your mindset from lifestyle sustenance to strategic investment.
Here’s how:
If your business is your largest asset—and your main source of income—it is not just a job. It is your retirement, your legacy, and your family’s financial future.
Treat it accordingly. Make the time to plan. Reduce unnecessary spending. Diversify your assets. And work with people who will tell you the truth and help you create the future you want.
Because the greatest risk… is doing nothing.
Want to learn more? Check out our guide: Executing the Exit – A Step-by-Step Digital Guide to Exiting Your Business