Education | May 08, 2026
Small Business Owners, Big Investment Questions
Steven KohlerCFP®, CPFA®
CFP®, CPFA®
Owning a small business means wearing many hats. As an entrepreneur, you are responsible for servicing and running the business. That means strategy, marketing, operations, human resources, legal, IT, customer service, oh, and finances all need your attention.
From a financial perspective, you need to know your numbers. Build cash reserves. Deal with taxes before they deal with you. Choose the right time to scale the business. Use debt strategically, not emotionally. Plan your exit earlier than you think.
And the businesses’ financial picture is just part of the story.
What about the personal finance of a small business owner?
This Small Business Week, we’re helping small business owners focus on a few key areas for their personal financial success.
1. Pay yourself and make sure to invest outside the business, too.
Your business is already a high-risk asset. It shouldn’t be the only place you are investing.
- Make sure you contribute regularly to your retirement accounts like a SEP IRA or 401k
- Invest in diversified assets like index funds and stocks
- Avoid the temptation to reinvest everything back into your business
2. Protect against risk
When your primary income comes from your own business, a single event can erase years of success.
- Invest in insurance to protect your personal and business interests (liability, disability, key person)
- Create emergency/contingency plans
- Diversify revenue streams (don’t rely on one client or platform)
3. Revisit your plan annually
You look at how the market impacts your business regularly. Do the same for your financial plan.
- Adjust your goals based on performance of not just the business, but also your other assets
- Rebalance investments
- Reassess risk tolerance
Schedule it as a yearly “board meeting” for your finances.
At DBR & CO, we can help you gain a better understanding of the unique financial challenges small business owners face, then create a game plan to address them all.
This material has been provided for general, informational purposes only, represents only a summary of the topics discussed, and is not suitable for everyone. The information contained herein should not be construed as personalized investment advice or recommendations. Rather, they simply reflect the opinions and views of the author. D. B. Root & Company, LLC. does not provide legal, tax, or accounting advice. Before making decisions with legal, tax, or accounting ramifications, you should consult appropriate professionals for advice that is specific to your situation. There can be no assurance that any particular strategy or investment will prove profitable. This document contains information derived from third party sources. Although we believe these third-party sources to be reliable, we make no representations as to the accuracy or completeness of any information derived from such sources, and take no responsibility therefore. This document contains certain forward-looking statements signaled by words such as "anticipate," "expect", or "believe" that indicate future possibilities. Due to known and unknown risks, other uncertainties and factors, actual results may differ materially from the expectations portrayed in such forward-looking statements. As such, there is no guarantee that the expectations, beliefs, views and opinions expressed in this document will come to pass. Information presented herein is subject to change without notice and should not be considered as a solicitation to buy or sell any security. All investment strategies have the potential for profit or loss. Asset allocation and diversification do not ensure or guarantee better performance and cannot eliminate the risk of investment losses.
Steven Kohler
CFP®, CPFA®