I have a few more questions for you today.
Last week, I identified the six major mistakes made by local business owners … and I’d like you to thoughtfully consider the questions I’m asking, and send me an email with YOUR answers.
You don’t have to email, of course … but please do consider these six issues as you work through growing your business — they can really catch you off guard sometimes.
As I mentioned last week, most of these issues are things which I and my firm do not handle, which is why, if necessary, I will gladly recommend to you someone who can assist you with them — and do it well.
So, here are the final 3 …
Six Questions For A Clear-Eyed Look At Your Business (Part 2)
“I look to the future because that’s where I’m going to spend the rest of my life.” -George Burns
Continuing from last week, every business has its blind spots.
Too often, legal and financial planning are left behind in the pursuit of operations efficiency and sales.
And that’s a huge mistake.
Take a look at each of these questions, and if you are troubled by any of your answers–give me a call ((205) 715-4488) or send me an email…
Mistake #1: Is the value of your business firmly established? [Buy/Sell Agreements]
Mistake #2: Is there an emergency plan? [Will & Asset Protection Strategy]
Mistake #3: What is to happen next? [Business Succession Plan, and more]
#4: What are your retirement plans?
Questions to consider:
* Do I know how much income I will actually need at retirement?
* How much control in the business must I maintain to secure my retirement income?
* Have I looked into financing options for key employees to buy me out?
* Do I want to be running my business, full-time, five years from now?
* Do I have contribution protection for my retirement if I were to become disabled?
Too many business owners view their business as their “retirement cash cow” … but have not made serious plans for how it can BE that cash cow.
#5: Are all of your eggs in one basket?
Questions to consider:
* Do I have reliable investments, other than my business?
* Will my business assets account for less than 25% of my retirement plans?
* In the past year, have I spent more than one hour planning my retirement?
If you haven’t diversified your retirement income outside of your business, you could be in trouble.
#6: Is there a REAL tax strategy?
Consider these questions …
* Am I pro-actively planning to deal with tax law changes?
* Have I determined my financial goals — and how taxes will affect them?
* Will I maximize my tax-free earnings in retirement (and before retirement)?
* Do I have an exit plan for my business — and is it written down?
Again, all of these issues always seem “procrastinate-able” on the front end … but if you don’t have a good answer to more than a couple of the above questions, you might be cruising for a financial bruising.
We will either help you fix these issues ourselves, or put you in touch with someone competent who can help to fix it. Call: (205) 715-4488 or send me an email.
I’m grateful for our partnership, and for your referrals!
Feel very free forward this article to a Birmingham business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we specialize in business tax preparation and planning (for Birmingham business owners, as well as families). And we always make room for referrals from trusted sources like you.
Warmly (and until next week),
Randall M. Hancock CPA, PC