What squirrels can teach business owners about wealth

Squirrels may look cute and playful, but they can be real jerks. They sit on the limbs just above jumping height in the trees in my backyard and tease and taunt my old dog Rodeo, raid my garden, and chew my sprinkler valves. But squirrels also have some strategy and diversification skills worth paying attention to.

 We’ve all seen the gray squirrel darting around the park, frantically burying acorns. Not in one pile, but in hundreds of tiny holes scattered across lawns, gardens, and forest edges. Why? Because a single hungry raccoon, a shift in weather, or a spoiled stash could wipe out its winter food if it were all in one place.

 Scientists have tracked squirrels making thousands of caches each season. Each nut is a little insurance policy. Some get stolen, some rot, some are forgotten. But enough survive that the squirrel thrives when snow covers the ground.

 It’s a survival strategy written into nature itself: spread your resources, reduce the risk of total loss, and give yourself more chances to succeed. Turns out, the fluffy-tailed little jerks have something to teach us. Exactly the same principle applies to wealth. One stash is fragile, but many spread across different places build resilience.

 Last time, we talked about how 80% of most companies’ value is tied up in intangibles like people, systems, culture, and customers. Zooming out and making this personal: 80% of most owners’ net worth is tied up in their business.

 Let’s make sure your wealth is resilient, aligned with your purpose, and positioned to leave a lasting impact.

 Let’s get to work.

Tools of the Trade

This week, create a quick personal financial statement. It doesn’t need to be fancy, just a snapshot of where you stand today:

• Step 1: List out your assets: business value, investments, retirement accounts, real estate, savings, and cash on hand.
• Step 2: List out your liabilities: business and personal loans, mortgages, credit cards, and any other debts.
• Step 3: Subtract liabilities from assets to calculate your net worth.

Now ask yourself: How much of that net worth is tied up in the business, and how much sits in liquid or flexible assets? If the majority is concentrated in one place, your balance sheet is sending you a clear message. It is time to protect the income and business that fuel your life now, while intentionally planning for diversification that secures your future. And if you are at a stage where plowing every dollar back into the business is necessary for growth, that’s fine too. Just know that it increases your exposure, which makes protecting both the business and your personal finances even more important right now.

Firm Foundation

A diversified balance sheet makes you, your company, and your family more resilient. Most owners don’t realize just how much risk they carry until it’s too late. The squirrels in your backyard know this instinctively: one stash is vulnerable, but thousands of spread-out caches give them the best odds to make it through the winter. Business owners should follow the same principle.

So what does a diversified balance sheet actually mean? It’s not about sprinkling money into every possible account type. It’s about creating liquidity over time, maintaining flexibility, and designing an allocation that fits your bigger picture. Each asset class has its own characteristics. Some offer growth, some provide stability, some create income. The goal is to align the mix with your broader financial objectives so that no single disruption can collapse your future.

Think of it like this: more liquidity means more options when opportunity or adversity shows up. Flexibility allows you to shift resources without derailing long-term plans. And optimal allocation requires careful consideration of how each piece contributes to your purpose, your family’s needs, and your eventual exit.

The process of building this balance sheet isn’t overnight. It starts with assessing where you are now and how much of your wealth sits in the business versus outside it. For some owners, especially in growth mode, reinvesting profits back into the business is the only realistic choice. That can be the right call, but it does concentrate risk. In those seasons, protecting what you already have—through strong contracts, insurance, personal financial discipline, and careful planning—becomes the priority. As the business matures, making intentional distributions to build personal wealth outside the company should follow.

Like a squirrel burying acorns across the park, the goal isn’t perfection. It’s enough variety to survive every season. Review regularly, adjusting as life, markets, and goals shift.

Craig Van Hulzen, our CEO and Founder, recently wrote a timeless piece, The Power of a Personal Financial Statement. It’s a must-read.

Here’s your gut-check question: Are you protecting your income and business today while also building toward liquidity, flexibility, and resilience—or are all your resources still locked in one fragile stash?

Next newsletter, we’ll cover the layer that protects all these buckets: risk management. Disability, life, health, and business continuity coverage, along with wills, trusts, and contracts, form the safety net that keeps your wealth from vanishing when the unexpected hits.

How We Partner With You

At Van Hulzen, we help owners turn concentrated business wealth into a balanced financial plan that supports both security and legacy. That means helping you identify where your assets are overexposed, building comprehensive business and personal strategies, investing wisely inside the company, and aligning everything with your personal vision. The result is clarity and confidence that your wealth can thrive in every season, not just when business is booming.

*The foregoing content reflects the opinions of Van Hulzen Asset Management DBA "Van Hulzen Financial Advisors" and is subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct. Past performance may not be indicative of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. Securities investing involves risk, including the potential for loss of principal. There is no assurance that any investment plan or strategy will be successful. 

 Investment advisory services offered through Van Hulzen Asset Management, insurance products and services through Citadel, an affiliated company. Any references to guarantees relate only to insurance products and are based solely on the claims paying ability of the underwriting company.