For Business Owners and Key People
Some Questions to Consider:
Concerns/questions during ownership:
Many of the following questions can be addressed with no real “cost”, rather a shifting of resources.
- How will I assure a satisfactory retirement income?
- How can I minimize the impact of taxes?
- How can I keep liquid cash available and growing?
- Can I retain key people, even during a transition such as the sale of my business or my death?
- Are there ways to “handcuff” them, potentially increasing the business value and lowering risk?
- Will they be “on board” when there is a transition or, out of fear or greed, will they look elsewhere for safety or opportunities?
- Can I protect my assets from predators?
- Is it possible to hold cash for potential venture capital, make a certain%, and have liquidity?
Concerns when exiting/selling:
- How much can I get for my business?
- Will I be satisfied with my income after I sell this business?
- Do I want to look at discounting the value of the business, using tools such as minority interests?
- Can I implement a key person bonus program to go towards a down payment in equity buyout? ..Or as incentive to stay on with the new owner?
- Can I do such a thing without a burdensome pull on cash?
Concerns at death:
- How will business maintain its value, get sold or managed if I die?
- If I die and its’ not sold, what happens?
- Will my family have enough financial security if I die?
- Will my key people run, manage, maintain and/or sell business after my death?
- Will competitive forces cause problems with client relationships and staff retention?
- Will my kids be spoiled by inheritance or will they seize the opportunity?
Concerns regarding estate planning:
- Can I shifting business growth out of my estate?
- How will I be able to equalize inheritance?
- How can I protect assets?
- I have 3 potential beneficiaries: family, government, charity. Are there any uninvited guests? Should I include or exclude any of these?
- Do I have clear vision of how things will play out for beneficiaries?
- Can my beneficiaries avoid taxation: Estate, Income, other?
If any of these questions make you stop and think, then we should talk.
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