By Anashe Barton, Astrella in strategic alliance with Wealthramp
Most startup founders’ financial journey does not follow a predictable path. Traditional financial planning is designed for salaried employees with steady income and employer-sponsored retirement accounts. It doesn’t reflect the reality of building a business where liquidity is uncertain and growth happens in unpredictable waves.
In our recent Ask an Advisor session, hosted with Jeff George, CFA, CEPA of Tao Financial and Pam Krueger of Wealthramp, explores how founders can take control of their financial future in a volatile market.
The J Curve: What Finances May Feel Unstable
Jeff shared that many founders experience what is known as a J curve. Founders invest time, energy, and capital up front without immediate reward. Eventually, their efforts may pay off in a big way, but when and how are uncertain. This makes it hard to plan for personal milestones like buying a home, starting a family or handling taxes.
The Cash Flow Crunch
“There’s no script for financial planning as a founder. It’s about planning around uncertainty and building stability where you can.”
Founders often adopt an all-in mentality, that presents flexibility issues. If liquidity events are delayed, and unexpected cash needs arise; they can become unexpected stress points. Jeff emphasized that financial discipline and scenario planning are not about being risk-averse, they are about building resilience.
Rethinking Risk: Why Diversification Matters
It’s common for founders to have most of their net worth tied to their company’s stock, or other private company stock. While that reflects commitment, it also creates concentration risk. Jeff and Pam encourage founders to think holistically. If majority of your wealth is in your company, consider balancing your personal finances with other asset types such as tangible investments, ETFs, real estate or government bonds. Diversification will protect your future and create long term financial stability.
Start Early: Tax Planning Matters More than You Think
“Once the value of your company is already high, many strategies are no longer available.”
The best time to plan for tax advantages like QSBS or required filings like 83(b) elections is before your company’s valuation increase. Waiting too long may mean missed opportunities and bigger tax bills.
Build a Plan That Supports Your Vision
We are proud to partner with Wealthramp, a network of fiduciary financial advisors who understand what founders face. If you are an Astrella customer, you can connect with a vetted advisor to help you create a personalized strategy that fits your goals and timeline.
Connect with a Wealthramp Advisor today.
Anashe Barton
As Head of Customer Success at Astrella by EQ, I lead initiatives that bridge financial services for private and public companies through data-driven customer engagement and strategic enablement. I love building foundational customer success programs that include customer journey mapping, CSAT measurement, and proactive customer engagement strategies.
