If you’re a trades entrepreneur you know how it goes. Most of your time, energy, and money are all tied up in one thing: the business.

And that makes total sense. You built it from the ground up. It provides for your family. It takes care of your team. In a lot of ways, it is your identity.

But the challenge we see over and over is that for most business owners (that we meet), 80 to 90 percent of their net worth sits inside the business. 

And the “retirement plan” usually sounds like this: “One day, I’ll sell — and that’ll be my retirement.”

On paper, that sounds fine. But in real life, it’s risky.

 

The Trap of Being “All In”

Most owners keep reinvesting back into the company — new trucks, more crews, better marketing. And that’s smart to a point. But without a plan to pull some of those chips off the table, you end up depending on one thing going perfectly: selling the business, at the right time, for the right price.

And we both know how unpredictable that can be. 

Markets shift. Buyers disappear. Life throws curveballs.

If your entire future depends on one big payday, that’s a heavy weight to carry.

 

The Two Wealth Engines

When we look at this through the lens of the BuiltWealth™ Ladder, you’re sitting around Rung 1, reaching up to the second one. And that raises a question from us: “What’s your second engine?” And we’ll follow up pretty quick with, “How loud is it roaring?”

This is where the shift happens. First mentally, and then practically. You’ve got to start running two engines instead of one.

 

Engine 1: The Business.

This is the heartbeat. It drives income, creates jobs, and builds value.

 

Engine 2: Independent Wealth.

This is the portfolio, the real estate, the retirement plan, the outside investments that grow even when you’re not on the job site.

When both engines are running, your eventual exit becomes a bonus, not your only plan.

 

Respect the Business, Grow Beyond It

Look, we’re not saying stop investing in the company. You’ve still got to keep the crews running and the jobs flowing.

What we’re saying is this: carve out 20 to 30 percent of your profits each year and start building that second engine. Do it consistently, and watch how fast your independence starts to grow.

That’s when real options start showing up. Sell next year or ten years from now, doesn’t matter. You’re in control either way.

 

So, What’s Next?

It’s a good time for some personal reflection. Consider: If my business hits a rough patch, tomorrow, what part of my financial life (personal and professional) breaks?

And then talk to your accountant and/or financial advisor about setting up or fine tuning your “second engines”:

– What do you have in place now?

– What are your best options to start building a better “second engine”?

If you’d like to talk about the BuiltWealth™ Ladder and how you can build and maintain a second engine, book a JobWalk anytime.

We know the goal isn’t just to grow a business. It’s to build a life that your business funds — not one it controls.

 

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GLASSBORO, NJ 08028

HFM Investment Advisors, LLC is a registered investment adviser. All statements and opinions expressed are based upon information considered reliable although it should not be relied upon as such. Any statements or opinions are subject to change without notice. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. All investments involve risk and are not guaranteed. Information expressed does not take into account your specific situation or objectives and is not intended as a recommendation appropriate for any individual. Listeners are encouraged to seek advice from a qualified tax, legal, or investment advisor to determine whether any information presented may be suitable for their specific situation. Past performance is not indicative of future performance.