Going through any major change can be stressful. Financial transitions are no different. When a business is preparing for an exit, careful planning is needed — and when you have a lot on your plate, it can be difficult to do so with a clear head. That’s where a financial advisor comes in.
Julie Martinez has worked in finance and entrepreneurship for a long time. She draws on her skills as a financial planner to help female founders manage financial transitions, including exit strategies. Julie is the Managing Principal at BSW Wealth Partners, a company dedicated to helping families and individuals preserve and grow their wealth.
Female Founders’ Struggles with Finance
Women tend to undersell their skills and knowledge in investment and finance. Even if they’re highly qualified, they don’t market themselves as confidently and aggressively as men do.
But Julie thinks the main challenge female founders face is their tendency to have less energy focused inward. There’s so much demand for their time, whether at work or home, and it’s essential to find time to relax and recharge. Self-care might look different for everyone, but Julie emphasizes the importance of financial focus on yourself.
“Financial planning is just another facet of self-care. And if making space for self care is a challenge, then planning can be a challenge,” Julie states.
Hiring a financial advisor is the best way to practice financial self-care.
Planning For Your Exit Strategy
Most people want to grow with their careers rather than envision a hard stop at a certain date. Since it creates more nuance, you must discuss the following with your advisor when you are planning an exit strategy:
How long do you want to continue at the current pace?
Are there areas you can pull back on and still keep business productivity?
Is team development needed to keep the income going for employees?
Are there portions of the business you want to be engaged in longer than others?
Does a business sale make sense?
Who would the buyer be?
What do you need to prepare your business for that?
With this, your advisor can effectively plan your finances and exit strategy.
Knowing Your Numbers
The first thing you need to do so you can exit easier is a recast profit and loss. By getting your cash flow and finances in order, Julie claims:
“It’s kind of like getting your house in order so that a potential buyer could look at that and really, truly see the opportunity there.”
The most important numbers you’ll need to look at are:
Profit and loss
Balance sheet
You also need consistent key team members for a bridge transition time. In that way, the whole business won’t evaporate when you remove the founder.
Find Advocates and Supporters
Women entrepreneurs should surround themselves with advocates and supporters. You’re more capable than you probably give yourself credit for, and the world needs what you have to offer. But no one can succeed without getting the proper support and surrounding themselves with the right people.
Julie shares, “Everyone that I’ve known deserves the best chance possible to follow their dream career and life arc. So I would encourage each of you. You deserve it. Surround yourself with advocates.”
Interested in Julie’s work? Check out BSW Wealth Partners. You can also check their blog for finance, news, and updates. You can also reach out to Julie on LinkedIn.
If you want to grow your team to take your business to the next level, a CFO can help you figure out your next best move. Understand how to price fairly yet competitively and maximize your profits with the help of a finance team. Schedule a discovery call with Profit Reimagined™ to help you cover your foundations and deepen your understanding of these concepts.