As a business owner you have a lot of responsibilities. In addition to all your Individual needs, you are responsible for the success of your own business and its cash flow, as well as your customers and employees. As such, your financial security impacts not just you and your family, but your business, employees and client base as well.
Just as financial planning for an individual depends on his stage of life, the same is true for your business. The requirements of your business financial plan depending on which stage it is in:
- Starting Out
- Growing
- Cruising
- Getting Out
Although The Process is the same, the conversation with Business Owners is different and depends greatly on which stage your business is in.
Starting Out
If your business is still young (whether you are or not), you are likely putting most of your profits back into the business, carrying debt and working to establish yourself in the market. Whether you are a sole proprietor or you have a management team, your business planning needs and problems are still very real.
Most people think this is when they least need my help when in fact it’s often when it’s needed most. If you are like some of the business owners I work with, some of the problems you face are:
- You have limited cash flow
- All your money is going toward your business
- You don’t have much time for family and friends
- You live with a high amount of uncertainty
Of course you are already doing your best to manage the business risk, but there are some unforeseen risks that can throw a spanner in the works. At key points when starting out, even a short absence can be catastrophic. Some of the most common losses can come from an illness or injury. There are low cost solutions to providing Key Person insurances for life, accident and disability to cover building and business debt.
Growing
You’ve gotten over the initial hump of Starting Out, your revenue stream is growing, your client base is building and your overall debt is getting smaller. You are starting to reinvest in your business and possibly continuing to expand your market. Although some of the startup risks are going away new challenges face the business.
- How do I keep good employees?
- Which tasks can I delegate to others who are more suited?
- Cash flow is easier but how do I pay myself salary?
- Besides a salary, what other benefits can the company pay for?
We will discuss how you can provide benefits that insure your employee base is stable and happy, and what salary and benefits you can safely have the company pay for instead of you.
Your executive team is becoming increasingly important to the continuity of your business. A review of existing Key Man insurance is always in order during this phase.
We can also look at creative ways to begin to remove equity from the business. It takes solid planning and, working with all your advisors (accounting, tax, attorney, investment), we can ensure the best long term advantageous outcome. My role in this area is to work as a facilitator with all these people and if you are missing a key advisor we can help you get one. We will all work together so that whatever your goals are, we put a package together that makes sense.
Cruising
You have been around for a number of years now. You have consistent revenue, an established business team and consistent cash flow. Your time and effort are in maintaining your relationships, managing the bottom line, and keeping your management team motivated.
Once again, the types of issues you face are changing. If your business is in this stage you may be considering:
- Exit strategy – how to transfer the business and to whom?
- Tax efficiency of retained earnings
- Estate planning for yourself and perhaps key partners
- Corporate holdings
We will review all the prior items adding particular emphasis to: Business asset transfers between owners, group benefit programs for both the executive and staff groupings. We will also look at creating a “sellable” business.
Getting Out
You have a strong business and are ready to retire. Now is when we work to get you a great transition plan.
- What are your options to withdraw your capital from a tax advantage (efficient) viewpoint, whilst still supporting the continuation of the business?
- How do you transition key management members and staff to the new business owners?
We will also begin the transition to your retirement and estate plans. With all the hard work you have done, what you take away from that business needs to be protected just as the business itself was.
I look forward to helping you with that process.
Here is how a couple of my clients have described their experience of working with me:
Thorough, Diligent, Professional
Thomas is the new standard to judge other agents against. Not only does he bring a wealth of experience to the table, but he also he focuses 100% of his attention on the matter at hand when he meets with you: specifically, protecting you and your entire family for years to come against whatever life throws your way. In addition, working for myself means I work a very busy schedule at all hours, but Thomas was always able to meet on my schedule. I'd recommend him to anyone.
To see what other clients have said about me go to the testimonials page.