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Sunday, 18 March 2018 16:51

Estate Planning as a Business Owner

A business owner’s estate plan, no matter how complex, can be implemented any time before death, so long as the testator is still legally competent ("sound minded", including that they understand the nature of making a will, the extent of his/her property, and know who would be considered the natural object of his/her bounty, etc.). Regardless, it's still a good idea to begin planning in advance, since time of need planning may not be possible.

If you are an owner of a business or a professional practice, it is even more important that your estate planning begin soon. Since it's quite likely that a significant portion of your wealth, and your family's source of income after your death, is tied up in the business. In that situation, the success of your estate plan is likely dependent on the business being transitioned to the next generation or sold to a 3rd party for a reasonable price. Both of those results may take years of planning and preparation to be successful. 

Published in Blog

Excerpt:  "Without a clear focus, it’s too easy to buckle under to distractions. Set targets for every day beforehand. Decide what you’ll do; then do it.

We often discuss our goals as if they're nothing but dreams. Actually, we can accomplish goals on a daily basis. Daily goals contribute to weekly goals. Weekly goals add to monthly goals. Monthly goals add to--you guessed it--yearly goals. With some preparation and planning, our goals can be something we accomplish day in and day out. Here's how to begin"

Published in Blog

Excerpt: "So here’s rule number one. If you have a great premium product, don't be afraid to bump the price up. You do not by any means have to beat a competitors price to be competitive, in fact, by putting your price up, it's quite possible that you'll outsell your cheaper competition. Why? Simple. Because a higher price screams quality. Don't for one moment believe you have to have the best price to make any sales. That's just not true, you just have to have the best sales system, and of course a premium product if you really ever want anyone to buy from you again."

Published in Blog
Wednesday, 04 January 2017 05:54

ESOPs...is it time to look?

Our main clients are closely held businesses (and their owners), so business and individual planning are often tied at the hip in our office.  Often that means a business sale isn't the ideal exit or retirement solution for our clients, so we look hard for tax advantaged strategies that (at a minimum) won't hurt the underlying business operations and ESOPs have been a regular part of that analysis.
Published in Blog
This is an extension of my post last week...

Many investors, eager to get started and get their company moving, will agree to terms that are not good business in the long run. It is understandable, and I have a client and friend that is fond of saying "we hope that is a problem" because if it is then the deal has probably been successful. Unfortunately, because of the inequity some deals will get sideways almost immediately and never reach their potential (or even launch).
Published in Blog
There is a ton of information available on the internet about how to value a business enterprise (including some on this blog). There is even a lot of information regarding the valuation of a pre-revenue startup during rounds of funding. Unfortunately, most of that information is not particularly helpful for startups unless they are in a major center of startup finance (i.e. Silicon Valley, Boston or NY), have a good track record, and plan to be working with the established players.
Published in Blog
Several year ago, following a discussion with a local investment banker about the DCF valuation of a client where the topic of appropriate discount rate was a hot issue, I wondered what others were using and if there was a "right" rate.
Published in Blog
Monday, 13 February 2017 04:45

Sales, Sales, Sales...

"I don't care how good of a manager you are...you can't manage ZERO to a profit."  Jim Watkins
Published in Blog
Monday, 06 February 2017 04:39

The company financing life cycle...

Several years ago, I ran across this diagram of the financing cycle of startup companies on eandua.com and thought it was an elegant expression of where true seed stage capital fits in the overall scheme of our economy and the critical role it plays despite it's relatively small dollar amounts.  
Published in Blog
Monday, 30 January 2017 04:35

Just Do It....

Nike has made the phrase "Just Do It" famous.  They started with the sports arena and now it is a part of the American English lexicon.  It applies to business as well.
Published in Blog
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