At Australian Financial Planning Group, we work with a diverse mix of clients, including families, professionals, high-achieving individuals, and many successful small business owners. No matter where you are in your financial journey, having a qualified adviser in your corner is one of the most intelligent decisions you can make.
It’s no coincidence that many of our most financially successful clients also happen to run businesses. Building a company gives you the ability to create opportunities and income that don’t exist in traditional employment. But as any business owner knows, that opportunity comes with long hours, personal sacrifice, and a level of responsibility that only fellow owners truly understand.
And while building wealth is one part of the story… protecting it is just as important. In this article, we share key strategies to help safeguard the wealth you’ve worked so hard to create.
Separate your personal assets from your business
One of the strongest foundations for protecting your wealth is ensuring your personal and business finances don’t overlap, financially or legally.
If you’re currently operating as a sole trader or in a partnership, it may be time to transition to a more formal structure, such as a Pty Ltd company or a family trust. These structures add a layer of protection between your personal assets, such as your home or personal savings, and any liabilities the business may face.
On a practical, day-to-day level, separation means keeping business and personal finances clearly divided. Use dedicated bank accounts, avoid mixing personal and business expenses, and maintain transparent accounting records. This not only strengthens your wealth protection but also provides clearer visibility into how your business is performing.
Ensure you’re adequately and appropriately insured
Every business owner understands the value of preparation, but planning for the unpleasant surprises is where actual wealth protection lives.
If illness, injury, or an unexpected event suddenly affects your ability to work, the financial repercussions can be significant. Personal insurance, such as income protection, trauma cover, or life insurance, can help ensure your family’s stability even when life takes an unexpected turn.
If you’re in business with partners, consider key person insurance or a buy-sell agreement funded by insurance. These arrangements support business continuity and ensure fairness for all parties if one partner is no longer able to contribute.
On the business side, ensure your operation is well-organised and well-covered. Depending on your industry, this could include:
- Public liability
- Professional indemnity
- Property and equipment cover
- Cyber insurance
These policies help transfer operational risks away from your personal finances.
Create a financial buffer. Whether it’s an emergency fund or a line of credit, having quick access to funds gives you breathing room in uncertain times. Recent years have shown that even the strongest businesses can face unexpected disruptions, and those with cash reserves have managed the pressure far more comfortably.
Diversify your wealth outside the business
It’s common for business owners to reinvest all their profits back into their company. And while belief in your business is essential, relying on a single asset for your entire future is a gamble.
Start regularly moving profit from the business into personal investment avenues. This might include:
- A diversified share portfolio
- Investment property
- Managed funds
- Superannuation
The goal is straightforward: avoid placing all the burden on a single asset. Diversifying your wealth creates alternative income streams and acts as a form of self-insurance.
Superannuation, in particular, is a powerful tool. It’s tax-effective, professionally managed, and in most cases, protected from creditors. Over time, consistent contributions, no matter how small at the start, help build a secure foundation that isn’t tied to the success of the business.
Don’t neglect your own retirement planning
Business owners are passionate, committed, and often intensely focused on growth. But this can create a blind spot: forgetting to look after your own long-term financial wellbeing.
Many owners reach later life only to discover that the majority of their wealth is tied up in the business, and unlocking that value can be more complex than expected.
Begin treating your retirement planning as a non-negotiable business expense. Make regular contributions to your superannuation or personal investment accounts, just as you would pay staff, suppliers, or your lease.
This approach:
- Builds personal wealth independent of your business, and
- Creates healthy financial discipline that compounds over decades.
When the time comes to sell your business, specific small business CGT concessions may enable you to transfer the proceeds into your super fund with significant tax advantages. Proper planning ensures you can make the most of these opportunities.
Prepare an exit strategy and succession plan
Whether your future includes selling your business, handing it to the next generation, or stepping back gradually, having a plan is crucial for protecting what you’ve built.
If you intend to sell, start preparing well in advance. A business that runs efficiently without your constant involvement is far more valuable to buyers. This often includes:
- Building a strong leadership team
- Documenting essential processes
- Reducing key-person reliance
- Strengthening recurring or stable revenue streams
If succession within the family or among partners is the goal, open conversations and legally binding agreements ensure a comfortable transition. A clear roadmap protects both your wealth and the relationships that matter most.
Your personal estate plan should also outline what happens to your business interests if you’re not around to make decisions. Without this, your family could face legal disputes, rushed sales, or loss of business value. With thoughtful planning, you secure not only your financial legacy but also a sense of peace of mind.
When operating an SME, you juggle many responsibilities. But protecting your wealth is one job you can’t afford to overlook. At Australian Financial Planning Group, we’re here to support you through every chapter of that journey, helping you build, protect, and enjoy the wealth you’ve worked so hard to create.
How AFPG helps you
When operating an SME, you juggle many responsibilities. But protecting your wealth is one job you can’t afford to overlook. At Australian Financial Planning Group, we’re here to support you through every chapter of that journey, helping you build, protect, and enjoy the wealth you’ve worked so hard to create. We offer a range of financial products and investment solutions that work side by side with business owners, helping them maximise their wealth for the future.
We can help
Step Up Financial Group, now AFPG, has the expertise to guide you in wealth accumulation and protection. We’ve helped hundreds of business owners make informed decisions that enable them to live a lifestyle of their choosing.
Contact us today for experienced, compassionate, and professional business protection advice.