What is financial planning?
Working Smarter with Your Money: The Five-Letter Framework That Helps Business Owners Make Confident Financial Decisions
Originally featured on The Unscripted Small Business Podcast by Precast Walls with host Daniel Hill. Listen to the full episode on Castos or wherever you get your podcasts.
Most people don’t really know what financial planning is.
Say you're a small business owner. You're building something meaningful. You're juggling client work, operations, team members, and maybe even a family. Then tax season hits—and suddenly you’re wondering: Am I missing something here?
That was my dad years ago. His business was growing, but his tax bill felt like a penalty for success. As we dug into potential solutions, a conversation with a CFP friend turned into a financial turning point.
We discovered a retirement plan option that allowed his business to contribute significantly more than a traditional IRA. With the right setup, most of the money went to him, a portion supported his employees, and the overall tax impact was a win. While every business is different, this was one of those moments that made me realize: small shifts in financial strategy can lead to meaningful long-term value.
That moment helped shape how I now work with business owners through a simple five-letter framework.
R-I-I-T-E: The Core Areas of Financial Planning
Financial planning doesn’t have to be overwhelming. In fact, I use one framework with every client, regardless of their income or industry: R-I-I-T-E.
R - Retirement Planning
Your savings rate, your expected spending, and how you envision life later. We tailor this to your current lifestyle—not an idealized version of one.
I - Investment Strategy
What are you investing in? Is it aligned with your goals, risk tolerance, and timeline? No speculation here—just a focus on the fundamentals.
I - Insurance
Life and disability coverage are often overlooked by business owners. I don’t sell these products, and I don’t earn commissions from them. I just help you identify the gaps.
T - Taxes
I don’t prepare taxes, but I do review them with clients regularly—especially business owners. Sometimes a strategic entity structure or retirement contribution plan can help reduce tax liability, depending on your situation.
E - Estate Planning
If you have a business, a family, or both—you need a plan. Clear documentation helps make sure your wishes are known. This is not just for the wealthy.
From Cash Flow Confusion to Clarity
Business owners often tell me, “I’m making good money, but I feel cash-poor.” This isn’t always a revenue problem—it’s a cash flow problem.
We dig into the numbers: What’s coming in? What’s going out? How are you allocating profit? A lot of business owners focus on the top line, but the real planning opportunities lie below the cost-of-goods-sold line—admin expenses, software, rent, and yes, your own compensation.
This is where we start building clarity and long-term strategy.
Client Story: The Attorney with a Windfall Year
A recent client—an attorney—came to me after closing out a large case that triggered a significant income spike. He was looking at a major tax bill.
We explored a deferred compensation approach, which allowed the income to be distributed over multiple years. The custodian handled the deferral, and I provided investment guidance aligned with his payout timeline. The strategy was tailored to his needs, and while it’s not the right fit for everyone, it helped him reduce the immediate tax impact and plan with confidence.
Client Story: A Service-Based Business Owner
Another client in a service business felt like money was always tight—even with strong revenue. After a review of cash flow and investment allocations, we identified a few areas where adjustments could improve both short-term flexibility and long-term outcomes.
Much like a chiropractor treating the root cause rather than the symptom, financial planning is often about looking beyond the obvious.
The Power of Partnership
As a fee-only fiduciary advisor, I’m compensated solely by my clients—not by product providers. My goal is to create more financial clarity and strategy than what you'd get going it alone.
Over time, we aim for measurable value—whether that’s improved cash flow, tax efficiency, or more confidence in your retirement trajectory. Every client is different, and there are no guaranteed results, but we build systems that can grow with you.
Start with the Basics
If you’re a small business owner and you feel like you’re leaving money—or peace of mind—on the table, here’s where to start:
Understand your real cash flow
Revisit your tax strategy (and entity structure, if applicable)
Document your estate intentions
Maximize retirement contributions where possible
Align your investments with your actual goals
You don’t need to do everything at once—but doing something today puts you ahead of where you were yesterday.
Nick Garofalo is a fee-only financial planner and founder of Open-Handed Wealth, a Registered Investment Advisor in the State of Georgia. The scenarios discussed are for illustrative purposes and do not guarantee future results. Learn more atopenhandedwealth.com.