Whatever your motivation, as a business owner you invest considerable thought into your operational structure, your staffing needs and management style, and of course, your streams of revenue. But how much time did you spend deciding how your personal benefits should be structured in coordination with those provided through your business? And how will you meet all of these needs without depleting your company’s resources? Is your financial future tied to a successful sale of your business? What is your continuation plan?
Here are some additional considerations for a business owner:
- For many, a closely held business represents the majority of the family financial assets. Is this an inescapable part of owning a business? Does this seem prudent for you?
- How does this play into your overall investment strategy? Have you given thought to diversifying your investments?
- What would happen to the company, your income, and the company value if you were unable to work?
- Are you taking full advantage of your company retirement plan? Are you sure the plan that you have suits your current needs? What about in the future?
- Does the profitability of your company compare favorably within the industry? Is the profitability of the company in line with the investment that it represents for you?
- Typically, how successful is the sale of a closely held business?
- If you sold your business, have you thought about how the buyer would pay for it? How will you recognize a gain from the sale of your business?
Don’t let these questions keep you up at night.
The Professional With a Plan Wins