The Business Is the Asset. It Shouldn’t Be the Whole Plan.

For business owners whose company quietly doubles as their retirement plan, their estate plan, and their emergency fund… whether they meant it to or not.

Here’s the number that should give you pause.

In a recent survey of business owners, nearly half of respondents reported having 50% or more of their wealth tied to their businesses. Other industry estimates suggest that many owners may have between 70% and 90% of their net worth tied to their businesses.

Either way, the math lands in the same place: one asset is carrying the weight of an entire financial life.

That’s not a plan. That’s a bet with the whole table.

A concentrated position like this is rarely a decision; it’s something most owners grow into. A slow season, a lawsuit, or a shift in the industry can hit the business and the household finances at the same time, because right now, they’re the same finances.

A personal plan can help keep the business’s risk from becoming the household’s entire financial risk.

The fix is more straightforward than it sounds: build a financial life that doesn’t rise and fall entirely with the company. That means investments, retirement accounts, and liquidity that exist outside the business: money whose value isn’t determined by how next quarter goes for the company.

This isn’t about betting against your own business. It’s about making sure your family’s future isn’t riding on a single position.

Start with one honest question.

If the business stopped generating income tomorrow — not forever, just for a year — how long could your household run on what’s held outside the company? For a lot of owners, the honest answer is “not very long.” That’s not a failure, it’s a sign the personal side of the balance sheet hasn’t gotten the same attention as the business side.

You’ve spent years building the business. It’s worth spending some time on a plan that doesn’t depend on it succeeding forever.

Let’s talk about what building wealth outside your business could look like for you.

Schedule a conversation →

Cottonwood Wealth Strategies helps business owners build personal wealth plans that are less dependent on the business they run. We’re based in Utah and work with clients across the country.

Disclosures:

Content is for informational purposes only and should not be considered an offer to buy or sell any securities or financial instruments, or to provide any investment advice or service.

 Sources: Raymond James, 2025 Business Owner Report: How Business Owners Are Planning Their Futures, November 2025; Exit Planning Institute, Why Financial Advisors Need a Different Process for Business Owners, accessed July 22, 2026.