Age : 28 | Job : Personal Trainer | Income : Varies
Strategic Financial Planning for Variable Income: Sarah’s Journey as a Small Business Owner with Blaine
Sarah, a driven entrepreneur, launched her personal training practice in 2019 after cultivating a strong client base in a high-end gym. Her venture was thriving until the pandemic struck, causing a significant 30% drop in her year-over-year income. Although her earnings have rebounded and even surpassed pre-pandemic levels post-restrictions, the variability of her income continues to be a source of concern. Sarah also harbors ambitions of opening her own fitness facility and developing a fitness app.
Navigating the unpredictable waters of variable income as a small business owner, Sarah found a beacon of guidance in Blaine at Progress Wealth Management. The primary challenge was to devise a financial strategy that not only stabilized her fluctuating income but also aligned with her ambitious goals of expanding her personal training business into a fitness facility and developing a fitness app.
Blaine’s initial step was to establish a comprehensive cash flow management plan for Sarah. This involved a deep dive into her business’s financials to illuminate actual expenses and identify strategies for managing cash flow during periods of reduced income. The creation of this plan was crucial, as it provided Sarah with a clear understanding of her financial position, enabling her to make informed decisions about saving, spending, and investing.
A significant achievement in Sarah’s financial journey was the nearing completion of a three-month emergency fund. This fund is a critical component of financial stability for any entrepreneur, offering a safety net that allows for operational continuity during unexpected downturns in income. Additionally, the initiation of an SEP IRA (Simplified Employee Pension Individual Retirement Account) represented a forward-thinking approach to Sarah’s retirement planning, acknowledging the need for long-term savings despite the immediate challenges of variable income.
Blaine’s holistic approach extended beyond individual financial planning. Recognizing the complexity of Sarah’s ambitions to open a gym and launch a fitness app, he facilitated collaborations with a network of local professionals. This team, comprising an accountant, attorney, and banker, was instrumental in providing Sarah with a multidimensional analysis of her business plans. Their expertise contributed to a realistic assessment of the feasibility, financial implications, and legal considerations of her expansion plans.
This collaborative effort yielded a dual outcome: it equipped Sarah with a clearer financial perspective and laid down a strategic roadmap for her business’s future. The guidance provided by Blaine and his network of professionals has positioned Sarah to realistically achieve her goal of opening her own fitness facility by 2026, with the fitness app development also in progress.
Blaine’s contribution to Sarah’s financial and entrepreneurial journey underscores the value of tailored financial planning and professional collaboration. By addressing the unique challenges of managing variable income and pursuing ambitious business goals, Blaine has empowered Sarah with the tools and confidence to navigate her path to success. This strategic partnership highlights the critical role of comprehensive financial advice in achieving both immediate stability and long-term growth for small business owners.