As a small business owner, you’ve got a lot on your mind at once. Inventory, human resources, cash flow, advertising, supplier relationships, bill payments, social media… the list goes on! With all these day-to-day, shorter term responsibilities on your management dashboard, where does the long view rank on the list of important things to consider?
A new report from the Bank of Montreal suggests that retirement and long-term savings are not as high a priority for Canadian small business owners as they ought to be. According to BMO research, 75 percent of Canadian small business owners have saved less than $100,000 in retirement funds. Considering the national population of small business owners is near 28 million, this data shows a huge gap in preparedness for the long term among business owners.
Why aren’t Canadian small businesses saving? Simply put, many respondents felt overwhelmed by the more quotidian responsibilities of running their businesses. This problem cannot be understated: the health of small business growth in Canada means little if its participants cannot plan for stability in the future. This is where financial technologies have committed to making the “day-to-day” easier through the streamlining and automation of key services (such as payments processing and cash flow management.)
In addition to the efficiency improvements offered by financial technology, the key to staying on top of your long-term savings goals is to make the time to plan effectively. Taking time to detail your long-term goals and needs should become a regular part of your business operations – schedule it in with enough frequency that you can stay on top of the targets you have set for yourself. If needed, seek out a financial advisor whose expertise can help you visualize the longer term and make concrete goals – whether they involve the continuation or succession of your business, its sale or transfer to other parties, or any number of other ideas.