Why Business Owners Should Look Beyond Their Business
For many entrepreneurs, the business is the engine that drives everything.
It produces the cash flow, creates opportunity, and fuels growth. But as success increases, so does something else. Taxes.
Chris and Ian both agree that many business owners eventually reach a point where they ask the same question:
How do I keep more of what I earn while still growing my wealth?
One of the most powerful answers is real estate.
Historically, the majority of multimillionaires and billionaires built their wealth through two primary vehicles: business ownership and real estate. When combined intentionally, those two assets create powerful tax advantages and long-term financial stability.
But the key is understanding how the two work together.
The Hidden Tax Advantage of Real Estate
One of the biggest benefits of real estate for business owners is depreciation.
Through tools like cost segregation studies, investors can accelerate depreciation on certain components of a property. That depreciation can create what is often called a paper loss.
Even though the property may be producing cash flow, that paper loss can reduce taxable income.
For business owners generating significant profits, this strategy can have an immediate impact. In some cases, it can mean keeping hundreds of thousands of dollars that would otherwise go to taxes.
As Chris points out, even a relatively modest annual tax savings can compound dramatically over time when invested properly.
The lesson is simple.
Tax planning is not just about compliance. It is about strategy.
Owning Your Building Creates Multiple Wealth Streams
A common starting point for entrepreneurs entering real estate is buying the property their business operates from.
Owning your building can unlock several advantages.
First, the rent you would normally pay to a landlord instead builds equity in a property you control. Second, if the building contains additional units or suites, other tenants can help offset the mortgage.
And third, the property itself becomes an appreciating asset.
Ian explains that this creates a powerful combination:
- Tax advantages from depreciation
- Cash flow from tenants
- Equity growth through loan paydown
- Long-term appreciation of the property
Later, when a business owner decides to sell their company, they may still retain the building and lease it to the new buyer.
That means the real estate can continue generating income long after the business is gone.
Active vs Passive Real Estate Strategies
Not every entrepreneur wants to become a real estate operator.
Some business owners enjoy managing assets, developing property, or building portfolios. Others simply want their money working in the background.
Chris and Ian emphasize that both approaches are valid.
Active real estate strategies might include:
- Buying office or industrial buildings
- Owning rental properties
- Managing tenants and property improvements
Passive strategies, on the other hand, allow investors to place capital into professionally managed funds or partnerships.
These investments may not offer the same level of control, but they still provide exposure to the wealth-building benefits of real estate without requiring day-to-day involvement.
For many busy entrepreneurs, that tradeoff makes sense.
The Biggest Mistake Business Owners Make With Cash
One mistake Ian frequently sees is business owners allowing large amounts of cash to sit idle in checking accounts.
Many companies maintain cash reserves for payroll, taxes, or unexpected expenses. While that discipline is important, the unused portion of that capital often earns little or no return.
Meanwhile, banks use those deposits to generate income for themselves.
Instead of letting money sit dormant, Ian encourages business owners to explore low-risk passive investments that allow cash to earn returns while still remaining accessible when needed.
The principle is straightforward.
Every dollar should have a job.
Building a Strategic Advisory Team
Another major theme of the conversation is the importance of surrounding yourself with the right advisors.
Many CPAs are excellent at compliance and bookkeeping but may not specialize in tax strategy. That can leave business owners missing valuable opportunities.
Chris recommends working with advisors who not only understand these strategies but actively use them in their own lives.
When someone has real experience buying businesses, investing in real estate, or structuring exits, their guidance often becomes far more practical.
And when receiving advice, Chris suggests asking one simple question.
Show me the math.
The best advisors can walk you through exactly how the strategy works.
Using Generosity as a Strategic Tool
The conversation also explores a topic many entrepreneurs overlook: strategic giving.
Through tools like donor-advised funds, individuals can contribute assets such as cash, business interests, or real estate while receiving immediate tax benefits.
Those funds can then be invested and distributed to charitable causes over time.
For families who care deeply about philanthropy, this approach allows generosity and financial strategy to work together.
Rather than giving impulsively, donors can build long-term charitable capital that continues growing before being deployed to causes they care about.
Start Planning Earlier Than You Think
One of Ian’s biggest lessons came from experience.
When he sold his business, much of his energy had gone into completing the deal itself. By the time the transaction closed, there was little time left to implement certain tax strategies.
That experience reinforced an important lesson for entrepreneurs.
If you believe your business may sell in the next few years, start planning now.
Early preparation opens the door to more options and better outcomes.
Closing Reflection
Business ownership can create extraordinary opportunity.
But building lasting wealth requires more than just running a successful company. It requires intentional planning, smart asset allocation, and the right advisors along the way.
As Chris and Ian make clear in this conversation, combining business ownership with strategic real estate investing can create powerful financial advantages.
And sometimes, the smartest move is not earning more money.
It is simply learning how to keep more of the money you already make.
Thank you for joining us for this episode of The Exceptional Companies Podcast. Stay tuned for more conversations that inspire connection and growth.
AND MORE TOPICS COVERED IN THE FULL INTERVIEW!!! You can check that out and subscribe to YouTube.
If you want to know more about Ian Noble, you may reach out to him at:
- Website: https://runsteadyinvestments.com/
Free Passive Investing in Real Estate Cheat:
- Sheet: https://go.runsteadyinvestments.com/exceptional-business-advisors-podcast
- Join My Passive Investor Mailing List: runsteadyinvestments.com/investor-club
- LinkedIn: www.linkedin.com/in/iannoble1/
- Instagram: @ian_invests
- YouTube: @runsteadyinvestments
Connect with Chris Seegers:
- Website: https://exceptionalcos.com/
- Email: Ch***@************OS.com
Other Resources:
- Books: Selling Main Street by Chris Seegers
