Earlier this year I asked our Founder’s Squad subscribers and my Twitter followers what topics they wanted me to write about in the upcoming months. Personal finance for Founders won hands down.
I can’t say I was surprised — my friend, Calm Company Fund Founder, SureSwift Alumni Founder (he sold us Storemapper in 2017), and co-conspirator at Founder Summit, Tyler Tringas has been pointing out that solid financial advice for Founders is a major content and services gap in our little corner of the entrepreneurial world for awhile now.
I am not a personal finance expert, but as the CEO and Founder of a private equity (ish) company, I tend to meet a lot of folks in the finance world, so convening experts in this area is something I can do. And while it might seem like a bit of a departure from our normal focus on SaaS exits, I think of a dream exit as one step in a successful bootstrapped Founders financial journey. So, talking about the steps that come before and after that makes a lot of sense to me.
My first step was to develop a list of the questions that I hear come up in conversation all the time — on Twitter, in the Founder Summit remote community, and at in-person events — and I sent those out to several financial advisors and wealth managers for their takes so we can share out a broad perspective on those questions and hopefully spark more sharing and conversation.
While I gather those response and start sharing them out, I’d love to hear from you — are these the right questions? Do you have others? Have you successfully navigated one of these areas and have your own perspective? Do you know someone you think should weigh in on this topic? Give me a shout on Twitter and let me know.
Personal Finance for Founders: Common Questions by Business Stage
- How to get a mortgage without a W-2?
- How to think about saving for retirement or diversification of investments when the best ‘investment’ is probably reinvesting in one’s business?
- Is it wise to look for debt or lines of credit vs. reinvesting your own money in your business?
- How to maximize the opportunities of being a business owner (legal, tax, etc.)?
- How to approach profit sharing with employees?
- Estate planning for entrepreneurs — are there considerations that are different if a lot of your net worth is tied up in a business?
Late-stage & Exiting Founders
- When is it okay to start angel investing — and at what percentages of income or net worth?
- How do things change when you get a big exit? How early should people plan for that?
- Any other ideas/advice you have for entrepreneurs that is different from the ‘standard’ advice for corporate folks?
As we get answers to these questions from our panel of financial advisors, we’ll be updating this page. In the meantime, stay tuned on Twitter to get updates, or weigh in on the convo.