Drive Your Dream to Your Legacy: A Business Owners Guide to Building Generational Wealth 🚀

This guide shows how a small business owner can build a successful company and create lasting wealth for their family.  What to do first?  What to do next?  That’s where your trusted team, your Board of Advisors, comes into play.

Stage 1: Ignition - Accessing the Right Capital 💡

Every big business starts with a great idea and the money to make it happen. Accessing the right Capital and being prepared is a critical first step. 

• Bootstrapping: Using your own savings to start the business is common. Bust open the cookie jar! You have total control, but you're also taking all the risk.

• Friends and Family: Asking people you know for a loan or investment. Don’t forget that you still have to professionally convince these folks with a clear plan of action to convey the confidence for success.  “Uncle Jack” may love and trust you but he has to be convinced to part with hard earned capital and invest in your “stock”.

• Small Business Loans: Your chances of getting a loan to seed your business launch improves based on your dollars at risk, your experience to do what you want to do AND the level of preparation invested.  This is where your Board of Advisors comes into play.  The SBA could be a way to access the capital needed, therefore be sure to partner with a loan advisor experienced in navigating the complex SBA programs.

• Venture Capital: For potentially high-growth businesses, you can pitch your idea to investors who are willing to give you a lot of money in exchange for a piece of your company. Think "Shark Tank"!

Stage 2: Hustle - Strengthening Your Business 💪

Once you have the capital, it's time for the hard work needed to build a solid business that will stand the rest of time. Here's how:

• Build a Great Team: You can't do it all yourself. Hire people who are smart, hardworking, and share your vision.   Don’t overlook that the future has Ai as part of your team so be prepared and informed. Even when you don't require employees, establish your Trusted circle of advisors who have your best interest in mind who help navigate the speed bumps.

• Create a Killer Product or Service: Make something that people love and can't get anywhere else.  How are you valuable to your customers on their journey? Are you unique? Different?

• Innovative Marketing: Get the word out about your business! Stay on top of trends, use social media effectively and word-of-mouth to attract customers. 

• Watch Your Money: Keep a close eye on your income and expenses. Don't spend more than you make seem like easy advice but keep an eye on margins and your cost of goods.

• Ongoing Learning: How do you stay on top of your industry trends to remain one step ahead of the competition? You can be nimble when you have deep awareness of what's ahead. Keep your employees on track as well.

Stage 3: Legacy - Building Generational Wealth 🏛️

Now that your business is on track for sustainable success, you can use it to build wealth that will last for generations. Here's how:

• Reinvest in Your Business: Use your profits to grow your company even bigger (and better). Doing this creates a higher value for your enterprise.  Reinvest in revenue producing areas AND into efficiencies perhaps your competitors are not.  Think about buying the real estate where your business operates. Buying the real estate housing your business is a great path to Generational Wealth.

• Diversify Your Investments: Don't put all your eggs in one basket. Use surplus from your business to invest in other things, like stocks, real estate, or other businesses.  Additionally, be careful not to carry too much debt or the wrong debt structure.

• Plan for the Future: Personal financial advisors can be a part of your Board of Advisors.  Work with a financial advisor to create a plan for how you'll pass your wealth on to your family. This can include things like trusts, wills, and life insurance.

• Teach Your Kids About Money: One of the best things you can do to help ensure your family's financial future is to teach your kids about money (and your business) from a young age. This will help them make smart decisions with the wealth you've created.

This is a map and like any good tool, one must use it effectively.  Most business owners have a successful end-game in mind, be it a successful sale or an alternate succession plan. The path from a great idea to a powerful legacy is filled with challenges, but it's a journey worth taking. With the right strategy and the right team of partners by your side, your legacy can be realized. 

VISIT US and learn more 

All the best,

The Team at Kohl Capital Associates

Jason Kohl, CCIM

(917) 405-4808