logo white back

Importance of Financial Planning for Entrepreneurs

As an entrepreneur who is just starting to build your business, you must be able to set yourself and your company up for success. Across all stages of the growth and development of your business, it is crucial to think of planning your finances. Xerxes Mullan, the Founding Partner at a global financial advisory boutique Avestar Capital , says it is never too early to start financial planning. As an entrepreneur, he understands the journey, the challenges and the nuances better than anyone else.

When you start to navigate the landscape as a budding entrepreneur, some standard advice you will encounter is to have a business that solves a problem or find a customer’s need and cater to it. However, it is essential to remember that you are building your net worth with your company. And you might be tempted to put all your eggs in one basket but must vary of doing so. Once you have raised enough capital for product development, marketing expenses and so on, you must try to manage and plan your finances efficiently. Stay on top of your expenses, income and balance sheet.

The life of an entrepreneur can be unpredictable owing to the instability of the market and various other factors. One way to overcome this is to start financial planning as early as possible. This means wealth generation planning, as well as income tax planning, should begin early on in the cycle. Most entrepreneurs will start to plan 6 to 12 months in advance before an exit or change of control event. There are certain strategies that entrepreneurs can adopt to help with their individual networks as early on in the business as they can. Some of the strategies include deferred compensation and strategic retirement planning. Having a retirement plan in place is crucial for security and ensuring employee retention and recruitment.

Additionally, an entrepreneur needs to realize that as external investors come into the business, it becomes important to protect one’s security stock holdings and plan from a tax efficiency perspective. This is significantly more important if there is a change of control of events and they are not able to be as agile with the planning at a later stage.

Financial planning for entrepreneurs needs to begin as early as possible and from asset protection and a tax minimization perspective. This will prepare the entrepreneur to be in a good position from an after-tax viewpoint in case any event occurs down the road. Even if there are future capital infusion prospects, the entrepreneur must be prepared for it. The financial plan should consider your short-term and long-term goals, future growth prospects and your original standing. As an entrepreneur, you should also look at stock investments to secure your future, taking into consideration your risk tolerance. Historically, stocks have performed better than assets and can help during inflation as a hedging tool.

However, it is of paramount importance to conduct enough market research or reach out to a professional financial planner, like those at Aviorwealth and Avestar Captial before making any stock investments. Another critical aspect to consider is rebalancing your portfolio on a regular basis. This activity wherein you buy or sell stocks to maintain your preferred level of risk and return will increase your long-term gains.

Financial planning for entrepreneurs serves as a pillow for them in the case of any uncertainties. Personal and business finance complexities are much easier to navigate with better planning. Avestar Capital works with entrepreneurs across all business cycles- right from financing to the exit stage. Every entrepreneur is bound to have unique financial needs, and the financial advisors at Avestar Capital are well equipped to handle their complicated balance sheets and meet these needs as well. 

Avestar Capital

Avestar Login

  India is the most populous country in the world with one-sixth of the world’s population. According to official estimates in 2022, India’s population stood at over 1.42 billion.

— Wikipedia

Since Avestar Capital’s founding in 2017 with $250 million in AUM, we have grown exponentially and are proud to announce that we closed this year with AUM of $1 billion.


Avestar Capital specializes in strategic financial planning for high-net-worth individuals from the South Asian diaspora, offering tailored wealth management solutions that transcend international borders. With a focus on optimizing financial growth and security, they guide clients through intricate cross-border financial landscapes with expertise and precision.


According to a Ministry of External Affairs report,
32 million NRIs reside outside India;
and overseas Indians comprise the world’s largest overseas diaspora. 

— Wikipedia