Current Issue Previous Issues Subscribe for FREE
Executive Q&A
What is the cornerstone of business financial planning?

by John Torrence, Michael LaMaina and Stan Molotsky
Financial planning is all about being prepared for the future, but the uncertainty of it all can be a tad overwhelming if not guided by a professional. But business owners need to not only be cognizant of their own personal finances, but also have solidified plans in place for their business or trouble could quickly arise.

John Torrence, managing partner, Masso Torrence Wealth Management
“‘Businesses that don’t plan thoroughly are more likely to struggle’ is an axiom that is particularly true when it comes to financial planning. Perhaps the single most critical planning skill those running a business must master is cash flow projection. The more detailed and accurate a business can be in its cash flow forecasting, the better the decision making can be in all areas of the business operation. In today’s changing economy, the ability to promptly compare assumptions to actual cash flow allows a business to get back on track with their overall business and financial plan.”
Michael LaMaina CFP®, ChFC®, president, Cornerstone Financial Advisors Inc.
“What comes to mind first is most often the development of a diverse yet robust retirement benefits plan. Its value touches every level of an organization, from the receptionist on the front line to go-to office managers and executives key to business success and longevity. In addition to helping business owners prepare for their own retirement, these plans offer a number of additional benefits beginning with those impacting a company’s most valuable asset—its employees. So making every effort to attain and retain top talent is at the cornerstone of business financial planning.”
Stan Molotsky, president and CEO, SHM Financial
“With business financial planning, it’s critical to have an exit strategy in case things do not go as planned. You have to make sure you have adequate reserves to protect yourself during downturns and income protection in case of disability to the main people in the business. Use LIVE as a guide—L stands for longevity and protecting your business and family for living longer than your parents and grandparents. I stands for inflation, as things continue to cost more (taxes, new tariffs, and cost of materials), and V stands for volatility, not only in the marketplace, but in living and protecting your business against uncertainties. E stands for events we can’t even imagine (severe weather, political uncertainty and sickness).”

To read the digital edition of South Jersey Bizclick here.

Published (and copyrighted) in South Jersey Biz, Volume 9, Issue 8 (August 2019).

For more info on South Jersey Biz, click 
To subscribe to South Jersey Biz, click 
To advertise in South Jersey Biz, click