FINANCIAL PLANNING

Sarah, a successful owner of a digital marketing agency, approached her 40th birthday with a desire to reassess her financial future. Intrigued by an article on business valuations, she had her agency evaluated using asset-based, income-based, and market comparison methods.

Her business was valued at $2.2 million. Armed with the valuation, Sarah revamped her financial strategy:

1. Retirement Planning: Knowing her agency's worth, Sarah set realistic retirement goals and increased contributions to her retirement accounts.
2. Expansion Opportunities: Using her agency's equity, Sarah secured financing for a second office, diversifying clientele and boosting revenue.
3. Exit Strategy: Sarah planned to sell her business, enhancing its value with strategic improvements.
4. Risk Management: Insights from the valuation prompted Sarah to diversify her client base and strengthen contracts.

With the valuation in hand, her financial advisor helped her balance her personal and business finances. With a clearer picture, they set up a budget that allowed for personal savings while ensuring the agency was well-funded for future projects.