When it comes to making risk-related business decisions Women entrepreneurs (72%) are more confident compared to sixty-four per cent of male entrepreneurs as per a report “Are there gender differences among entrepreneurs?” by BMO Wealth Management.
“Decisions that involve risk can cause anxiety, especially for entrepreneurs whose personal finances may be on the line. It’s great to see that so many business owners feel confident making these types of decisions,” said Chris Buttigieg, Senior Manager, Wealth Planning Strategy, BMO Wealth Management.
When asked about their biggest challenges, entrepreneurs highlighted several areas including:
• Managing everything themselves (36 per cent overall; 37 per cent of men; 35 per cent of women)
• Growing their business (33 per cent overall; 34 per cent of men; 35 per cent of women)
• Confidence in their abilities (9 per cent overall; 8 per cent of men; 11 per cent of women)
Buttigieg added, “Entrepreneurs need to know that they don’t have to manage everything on their own. Talking with experts about financial or other matters during their business’ development will help ensure they can harness their ambition, while also enriching their personal life.”
BMO offers the following financial planning tips for entrepreneurs:
Creating a Business Plan: A business plan is a great tool to help you envision how your business will function and grow. It is also a necessary document that lenders need to review prior to lending money.
Corporately Owned Life Insurance: Life insurance can be used to protect your business in the event of loss of control on the death of one of the owners. If that is the case, the life insurance can buy out the interest of a surviving spouse or family member.
Sourcing Capital: Business lines of credit, business credit cards, government loans and venture capital are all ways of sourcing capital. A financial professional can work with you to find the most suitable type of credit that fits with your business.
Tax Planning: A tax professional can help you to enhance your personal wealth through your business by discussing the use of corporate structures and individual pension plans.