Founders are often the first investors in their companies. And whether that business gains venture backing, raises money from friends and family, or remains self-funded, it can make determining your net worth a tricky endeavor.
Net worth, put simply, is an accounting of your assets minus your debts that lets you know where you stand overall financially. It’s useful as you assess your personal financial goals or retirement plans. Carolyn McClanahan, co-founder of Jacksonville, Fla.-based financial planning firm Life Planning Partners, suggests keeping an updated net worth statement to keep track of your worth. “Usually the outstanding question [in that] is “What is the value of the business?” she says.