Your Personal Business Plan

Stewart S. Koesten Founder & CEO

Joni Lindquist Executive & Career Coach

913.345.1881

www.makinglifecount.com Get financial and career planning tips: kcfinancialplanning.com

A business cannot

thrive without a business plan!

Neither can you!

YOU = A BUSINESS

Step 1: Where are you now? Step 2: What do you want to

achieve? (And when.) Step 3: How do you get there from

here? What are you willing to do?

Step 4: How do you get it done? Step 5: How well are you doing?

Just like a business, you need a plan to achieve your goals!

Where are you now?

Compile Data About Your Current Assets Human Capital Financial Capital

Human Capital: Education + Experience + Skills

Are you……….. • On the right career ladder?

• Where you’d thought you’d be by now?

• Passionate about your chosen career?

Take the Career Satisfaction IndexTM

Financial Capital: Age + Net Income + Net Worth

Do you know………. • What you earn vs. what you keep?

• What you own vs. what you owe?

• Why you own what you own?

Take Your Investable Net Worth Test

Net Worth Test • How are you doing in accumulating wealth?

(Pretax annual household income X Age)/ 10

Example:

(100,000 HH Income X 40 yrs old) / 10 = $400,000 $400,000 considered “average” wealth accumulation Above $400,000 “prodigious” wealth accumulation

Below $400,000, “under” accumulator of wealth

Source: “The Millionaire Next Door” By Thomas Stanley and William Danko

Where are you now?

Human Capital

Strengths

Human

Capital Weaknesses

Human Capital

Opportunities

Human

Capital Threats

Financial Capital

Strengths

Financial Capital

Weaknesses

Financial Capital

Opportunities

Financial Capital Threats

Complete a Personal SWOT for each ASSET

Case Study: Bob & Sue’s SWOT • Couple in their 30’s • Both with high powered jobs • Two young children under the age of 5

HC Strengths

Successful careers

HC Weaknesses

Unfulfilling job

Bad work/life balance

HC Opportunities

Skills to leverage

HC Threats

Narrow experience

Work for same company (lack of

diversity)

FC Strengths

Substantial income

FC Weaknesses

High expenses

FC Opportunities

Rising incomes

FC Threats

Loss of job

What did their SWOT

analysis tell them?

Where are you? What would your SWOT analysis tell you?

Step 2: Now, what do you want to achieve?

Dare to Dream!!

• Life Goals • Career Goals

• Forget about others’ expectations – what

does your ideal life look like?

Know Your Values What is really important to you?

• If money were no object, what would you do in your life?

• If you were told you had only five years to live

– what would you do differently?

Clarify Your Goals

• S = Specific • M = Measurable • A = Attainable • R = Realistic • T = Time-Bounded

But goals don’t always need to be smart..

Prioritize Your Goals • Typically there are more goals than time

or resources • Prioritize by:

– Importance – Timeframe – Agreement with spouse/partner

Case Study – Bob & Sue’s Goals • Envisioned a different life style

with more family time • Both spouses still wanted careers

– But Sue saw that her “accidental” career wasn’t fulfilling

– Dreamed of being a college professor • The family life style more important than

current income • Start soon while kids young

Step 3: How do you get there from here? What are you willing to do?

• Analyze the gaps between where you are and where you want to be…… – On your career path (Human Capital)

• Skills, experience, education

– On your wealth management path (Financial Capital)

• Income, Expenses, Savings, Financial Assets

Resources for Planning Human Capital - Career Path PlanTM personal

development plan What skills/education/experience do you need? Financial Capital - Comprehensive Financial Plan What are you trying to accomplish with your

money? Develop targets, timelines, budgets, investment goals,

and ensure asset protection

Case Study – Bob & Sue’s Plan • Sue was not qualified for her desired profession

– Identified additional education required, location, set timeframe targets

– Bob needed to maintain or increase his income

• Completed financial scenarios with anticipated changes in income and spending – Developed new budget

Step 4: How Do You Get it Done? • Begin Implementation

– Do It Yourself? – Hire Professionals? Consider time, expertise, knowledge

Case Study – Bob & Sue’s Implementation

• Sue quit job; began education track – More family time, less stress

• Bob negotiated telecommuting to maintain his income

• Implemented reduced spending plan • Relocated to support Sue’s education • Implemented investment plan with portfolio of

moderate growth

Step 5: How well are you doing?

Need periodic reviews and adjustments:

Are you: hitting milestones? making adjustments as you hit barriers? making adjustments as the world

changes or you change? implementing on a timely basis?

Case Study – How are Bob & Sue Doing?

• Sue has completed education, is now a professor

• Reviewing and updating their situation quarterly • Generally hitting key milestones • Faced hurdles – housing, Bob’s work situation,

relocations • Re-adjusted action plans • Spouses happier, less stressed; children

healthy & happy

Operate as if You are a Business Build & Execute Your Personal Business Plan

1. Evaluate your personal situation 2. Set goals for your life 3. Analyze options and design a plan 4. Implement the plan 5. Monitor and make changes as

needed

Do this annually !!

Our philosophy….. Making Life Count!®

Living well today while planning for your future

Are you Making Life Count!®?

Get financial planning tips at kcfinancialplanning.com