The benefits of working with a wealth management advisor for women entrepreneurs

Canada’s women have the potential to increase the country’s GDP by $150 billion Opens in a new window.. Currently, 18 per cent of businesses are majority owned by women in Canada Opens in a new window.. With more women taking on entrepreneurship and the Canadian government pledging to advance women’s economic empowerment, the number of women-owned businesses will continue to increase.

Whether you’re looking to manage your established business or seeking to grow your enterprise, here’s how working with a wealth management advisor can assist you.

Your personal financial goals are intertwined with your business’ wealth management needs. That’s why your CIBC Private Wealth advisor partners with CIBC Commercial Banking to address both your personal and business financial goals using a holistic approach to wealth management.

“Commercial Banking looks after the business side while Private Wealth looks after the personal side, corresponding regularly to ensure we’re all on the same page,” explains Robyn Morgan, Senior Manager and Team Leader, CIBC Commercial Banking. Working with a team of advisors can help you effectively manage and plan financially throughout every stage of your business.

Using an advisor can also help you save time and increase efficiency so you can focus on running your business. As an established business owner, you’re dealing with a multifaceted financial picture. Wealth management considerations range from managing cash flow to financing your business, handling credit payments to paying employees. Trying to perform this juggling act is time-consuming. Working with a professional with experience in these areas can help you synchronize these wide-ranging financial needs.

While managing money concerns all business owners, the most effective approach to achieving optimized wealth management varies between businesses and industries. This is why our Commercial Banking team provides a broad spectrum of advice and solutions customizable to all sectors. Whether it be franchise ownership, healthcare services, agriculture or otherwise, Commercial Banking offers specialized advice for your unique industry. “We ensure we have a firm understanding of the business and industry that our clients operate in,” Morgan tells us. “This allows us to offer tailored advice.”

Once your business is running successfully, it’s essential that you increase its resiliency to market changes. Businesses tend to grow in two main ways: organically or via acquisition.

Organically: This refers to growing your business on its own without purchasing another company’s shares.

Acquisition: This is when you grow your business by purchasing most or all of another company’s shares.

“The Commercial Banking team are experts in their fields and see many businesses in every industry and life cycle, giving them the ability to provide advice and best practices,” Morgan explains, “Commercial Banking commonly finances acquisitions, properties for expansion, renovations to better use space, new equipment and lines of credit for working capital needs. All of these items help businesses grow.”

From asset-based lending to shareholder loans and acquisitions, there are many options to finance the growth of your business. Working with an advisor can help you determine which path is right for your business, and get you considering options you may not have otherwise known were available.

Creating a business succession plan can help ensure the continuity of your business and leave a legacy for those who matter most. When transitioning your business, it’s important to consider how much you’ll need to sustain your lifestyle in retirement, what type of management model you’d like to set up, and tax considerations. Working with a team can help you address all of these concerns.

“Commercial Banking is often involved early on when business owners are beginning to think of transition planning,” Morgan tells us. “We work closely with our Mid-Market Investment bank to help them have an idea of market pricing and different types of buyers for their business. We include Private Wealth in the discussions as it’s important not just to look at the future of the business, but to set the client personally up for success, ensuring any incoming funds from the sale of the business are invested accordingly and all personal assets, estate and tax planning considered.”