At the helm of successful companies are the entrepreneurs who have achieved the American dream and built wealth from their leadership efforts. The Tri-Counties, being an idyllic place to live, are filled with many people in this esteemed position.

Does achievement in business translate to success in personal wealth management? Unfortunately, the answer is often no. The tragedy is that the apparent "wealth" that was generated over decades can be squandered in a matter of a few years because of poor personal planning decisions.

What are the two most common mistakes business owners make? First, they neglect their personal finances, with all the attention going toward the business. Second, they tend to be overly optimistic about the business prospects. They are "all in" with making the business grow and fail to create a backup plan should success not follow.

A helpful approach for business owners is to think about personal wealth as a separate business. Develop a clear vision of desires, or personal goals, as the starter. Then create an operating strategy, a financial plan, that outlines realistic paths to fund lifestyle goals. Implement a risk management plan that includes insurance and estate planning to protect against "what-ifs." And last but not least, have an effective team in place to implement the strategy efficiently. That team might include a financial adviser, accountant, attorney, banker, investment manager and insurance professional.

Paying down debts, investing in retirement plans, funding college accounts and creating liquid wealth outside of the business is paramount for future financial security. Ensuring a succession strategy is in place for the business to thrive once the owner is no longer at the helm is critical to ensure maximum value when the business is sold.

This is not always easy. Although converted wealth from a business sale can make personal financial dreams a reality, proposed buyers rarely value the business the same way as an owner/founder does. Having concentrated wealth in the business is not as simple and fast to unlock as one may believe. Careful planning must begin years in advance.

By creating a personal financial plan and treating it like a separate business, by involving professionals and family members in the process well in advance, and by setting realistic assumptions about the wealth to be generated from the disposition of the business, the business leader can enjoy an immensely satisfying lifestyle and create an impactful legacy for heirs and charity. It all stems from entrepreneurs giving their own wealth the same level of care and priority they dedicate to managing their business.

Brad Stark and Seth Streeter are co-founders of Mission Wealth Management in Westlake Village and Santa Barbara.

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Separating business from personal finance decisions