Business
Financial Strategies for Business Owners
Financial strategies for business owners generally refer to planning that addresses both the business itself, such as protecting against the loss of a key person or planning for ownership transitions, and the owner's personal financial goals, such as retirement and estate planning. These areas are often interconnected for business owners more than for typical employees.
The business ecosystem
A Business Depends on More Than Revenue
Hover or tap each connected element to see the planning question behind it.
The Business
Owner
What happens to the business, and to the owner's family, if the owner cannot work or passes away.
Educational overview. Which considerations apply depends on your structure, agreements, and the products available through licensed channels.
Continuity planning
From Risk to a Funded Agreement
Step 1 · Identify
Which people, contracts, or relationships the business could not easily replace.
General information for business owners. Agreements should be drafted and reviewed with your legal and tax advisors.
Who may consider this?
- Sole proprietors and incorporated business owners
- Partners in a business with one or more co-owners
- Business owners without a documented succession or buy-sell arrangement
- Owners who have not reviewed key-person or business protection coverage
- Business owners approaching retirement or considering a sale
- Owners looking to extract income from the business tax-efficiently
Why does it matter?
A business owner's personal financial security and the business's continuity are often closely linked, more so than for a typical employee. The loss, disability, or departure of an owner or key employee can create financial strain for the business, its remaining owners, and the owner's family, particularly without a plan or funding mechanism in place ahead of time.
What should I consider?
- Do you have a buy-sell agreement in place with co-owners, and is it funded?
- What would happen to the business if you or a key employee became seriously ill or passed away?
- How are you currently extracting income from the business, and is it the most efficient approach for your situation?
- Do you have a personal financial plan that is separate from your business assets?
- What is your general plan for eventually transitioning out of the business?
- Have you reviewed your business protection needs with a lawyer and accountant, in addition to a financial advisor?
- How would your family be financially affected if something happened to you?
Go deeper
Key-person and business continuity considerations
Key-person insurance is generally used to help a business manage the financial impact of losing an owner or an employee whose knowledge, relationships, or skills are critical to operations. A payout may help cover costs such as recruiting and training a replacement, lost revenue during a transition, or paying down business debt, depending on how the coverage is structured.
Buy-sell agreements and funding
A buy-sell agreement generally outlines what happens to a business owner's share if they leave, become disabled, or pass away, including how the remaining owners might purchase that share. These agreements are often funded using life or disability insurance so that funds are available when needed, rather than requiring owners to find funds unexpectedly or sell business assets.
- Defines what happens to an owner's share in specific circumstances
- May be funded through life or disability insurance
- Generally drafted with legal counsel alongside financial and insurance planning
Personal protection for business owners
Business owners often do not have access to employer-sponsored group benefits, making personal life, critical illness, and disability coverage particularly relevant. Because business income can be less predictable than salaried income, personal protection planning may need to account for variable income and the business's ongoing obligations.
Retirement planning for business owners
Business owners without a workplace pension may rely more heavily on personal savings, corporate investments, or the eventual sale of the business to fund retirement. Coordinating personal retirement goals with corporate structure and timing can be more complex than typical employee retirement planning and often benefits from coordinated advice.
Succession and legacy planning
Whether a business will eventually be sold, transferred to family, or wound down affects both business and personal planning. Coordinating conversations between a financial advisor, accountant, and lawyer can help align the business succession plan with the owner's personal and family goals over time.
Important to know
- Sam can help explore financial and insurance considerations and coordinate conversations with legal and accounting professionals where appropriate; Sam does not provide legal or tax advice.
- Business insurance needs vary significantly by structure, size, and industry, and should be reviewed individually.
Last reviewed: August 30, 2026 · Reviewed by Sam Behroozian, Licensed Life Insurance & Financial Services Agent
Owner planning areas
Four Conversations Owners Tend to Have
Business continuity
Whether the business can meet obligations if an owner or key person is unexpectedly absent.
Key person
The financial impact of losing an individual whose knowledge or relationships drive revenue.
Owner protection
Coordinating personal coverage with corporate structure so the family is not left dependent on a business sale.
Succession
How ownership transfers, on what timeline, and whether the funding for that transfer already exists.
Answers
Common questions about business owners
Direct answers first, with the context that matters before any decision is made.
North Vancouver, BC
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