Small Business Owners

Many of our clients are small business owners, and we find that small business owners require a more in-depth initial consultation due to the volume of financial information analyzed and the complexity of their business issues. Self-employed individuals are almost entirely dependent on the success and profitability of their business in order to achieve their financial goals, which make the analysis and expertise that DFM can provide to their business invaluable.

DFM can help make sure the business is operating as profitably as possible and bridge the critical gap between business and personal financial goals for the small business owner. Examples of areas we typically review to make the business more successful and profitable, in turn allowing the individual to more easily meet their financial and personal goals include the following:

Debt structure and cash flow - We often find that small businesses blindly follow the advice of their bankers when structuring their debt.  By analyzing cash flow and a client’s current debt structure, we can advise changes which free up cash flow, thereby exchanging dollars currently being allocated to note payments to fund other, more productive objectives. Many clients come to us feeling like they are drowning in debt only to find out the same dollars can provide retirement savings if appropriately restructured.

Analyzing revenues, overhead and business profitability - We have extensive experience analyzing profit and loss statements of small businesses, including fees charged, variable and fixed expenses and the resulting cash flow. Ourrecommendations often times result in a significant difference in cash flow available to meet business and personal objectives.

Customized retirement plans - A myriad of different retirement plans are available to small business owners. These plans can be designed and established with the primary goal of maximizing owner savings and minimizing income taxes. Qualified retirement plans allow owners to save between $16,500 and $195,000 annually in a tax deductible, asset-protected environment.

Tax planning and minimization strategies – Our advisors are registered CPAs in the state of Kansas and integrate the knowledge of tax law and minimization strategies into our financial plans. Many financial planners do not hold the CPA designation or have the tax background of DFM.  This tax knowledge helps us to identify missed opportunities for small business owners. Since most small business owners' tax liabilities are generated almost entirely through business profitability, accurate predictions of business income allow our clients to prepare, plan for, and actively manage their income tax liabilities throughout the year rather than simply being provided an amount due on April 14th.

Asset protection and risk management - Various aspects of asset protection are reviewed for the business and the client personally. We make recommendations on how to structure the business properly in order to provide the best asset protection possible at a reasonable cost.  Other risk management strategies are analyzed and recommended including the appropriate use of insurance to protect the business and accumulated personal wealth.