Business Planning

For most business owners, the business is their most significant asset, and the financial success of that business has an immediate impact on the economic security of the family. Business planning should incorporate tax planning, risk management, and succession planning. It is imperative that your financial, tax, and legal professionals work together, as a team, on your behalf so that you can Focus on Financial Freedom®.

Business planning coordinates the management of your business throughout its life cycle with:

  • Risk management
  • Tax planning
  • Succession planning.

Starting and running a business carries its own set of risk exposures, and there are several factors that can impact how safe your personal and business assets are. These factors include, but are not limited to: the type of business entity you choose, the state in which you choose to do business, how you manage your business, your human resources, and your taxes. Business risk management identifies your options for handling these risks.

Without proper planning, you may have difficulty tapping the value of your business to support you during an unexpected illness/disability and during retirement. A significant portion of the actual value of your business could also be lost upon your death if you do not have the proper safeguards in place.

Executive compensation focuses on both cash and non-cash approaches. The size and structure of the business significantly influences your compensation systems. Large businesses tend to provide owners with sophisticated, and sometimes complex, compensation formulas. Small businesses tend to adopt a more straightforward compensation approach. Examples of compensation include insurance benefits, qualified retirement plans, stock options, personal performance initiatives, and other tax-advantaged nonqualified plans.

Succession planning focuses on the transition of a business from an existing owner to a new owner. While key factors vary extensively with business type and industry, there are some factors common to all business transitions, including the creation of a sellable business and the formulation of specific transition mechanics at the time of sale. Additional succession planning issues include positioning a business for sale, determining valuation and terms, grooming senior management, and creating strategic alliances.