Don’t “Over-Fund” Your Small Business

Most small business owners can’t imagine that there’s a point where they’ve invested too much in their companies, but Joyce Rosenberg from the Salt Lake Tribune has some great advice this weekend for small business owners. She says you need to resist the temptation to pour every last cent into your “baby”.

An excerpt:

When a business is in its first years of existence, it’s very tempting for an entrepreneur to put every possible cent toward building the company, often at the expense of a personal financial portfolio. Years later, many owners are still neglecting their own finances, believing the investment they’ve made in a now-successful company is all they need.

Financial advisers vehemently advocate against this common practice, which can include tapping an owner’s home equity to fund a company. Focusing all your financial resources on a business can jeopardize retirements, children’s education funds and leave a family struggling in an emergency.

You can read the rest of the article at the SLT website.

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