As a business owner, there will always be ups and expected downs in the business. Owners always want revenue and profits to keep going up, but an experienced businessman will tell you that it is never always rosy and every once in a while, there will be bumps along the way.

I was speaking with a business owner recently and he shared about his concern for protecting his assets in the event of an unexpected downturn.

As he is in a dilemma to grow his business and protect his assets at the same time, he got caught in between.

I shared, “Do you know that if you would like to expand your business very quickly and grow, you should at least ensure that your family is well protected and taken care of first. Then you can expand aggressively with a peace of mind.”

For example, put aside 20% of whatever assets you have and draw a line on it, ringfence it to ensure it is shielded. For the remaining 80%, you can continue to take on even more aggressive growth of the company to the next multiple level.

The 20% becomes wealth and assets that is shielded and can still continue to work hard in various forms. So even if the worst case of bankruptcy happens, the assets can potentially be protected.

However, do take note that you have to plan and plan early when times are great and there is surplus. Doing this when times are challenging might mean that it is too late.

Of course, when a person is riding high in business, it is very difficult to imagine or foresee any bumps ahead.

So speak with an experienced business and financial advisor early to explore more in depth how you can shield and ringfence your assets.