Business Planning

When partnering with business owners, our first step is to establish a comprehensive understanding of your current position – essentially, where you stand today. It is important that we work together to uncover not only your business goals but also your personal financial goals. Our strategic planning revolves around addressing six pivotal areas commonly encountered by business owners:

1. Transition Planning – Business owners will exit their business one of two ways: planned or unplanned. Our team will help you build a strategy around:
   1. Planning in the Event of Unlikely Death/Disability – How will the business operate in the event the owner is no longer able to operate the business? What is the impact to his/her family?
   2. Exit and Buy/Sell Planning – for an Owner to Exit When/How They Want – While most owners acknowledge the desire to exit at some point, many lack a clear plan, potentially resorting to suboptimal measures like a hastily placed “for sale” sign. Many owners have operating or buy/sell agreements in place but may not have revisited them as their business has grown significantly.
2. Employee Retention – Explore key aspects such as:
   1. Benefits – health insurance, group life insurance, etc.
   2. 401k and other Retirement Plans
   3. Golden Handcuffs
   4. Key Person
3. Executive Benefits – Empower businesses to select recipients for added benefits, including:
   1. Deferred Compensation
   2. Defined Benefit Plans
   3. Executive Bonus
   4. Profit Sharing
4. Retirement Planning for the Owner – Addresses the common issue of 65% of owners lacking clarity on their retirement income sources. Many have prioritized their business throughout their career, and it’s time to strategize for their future.
   Massachusetts Mutual Life Insurance Company. “2022 Business Owner Perspectives Study: Insights from America’s Economic Engine.” 2022.
5. Business Evaluation – Understanding what your business is worth is pivotal to estate and business planning.
6. Estate Planning – Navigate the intricacies, considering factors like:
   1. Understanding the company’s value concerning inevitable tax implications.
   2. Planning for business gifts.
   3. Implementing tax-efficient strategies for transferring business assets out of the estate before death.

Connect with an experienced financial professional from Strategic Financial Group to embark on a tailored journey that addresses these critical facets of business ownership and ensures a robust financial future.