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I Advice - Business Continuation Planning
Most small service businesses do not fully utilize their websites as well as the can. In fact many large franchising companies which thousands of service vehicles do not either. It is interesting with all the modern technology available that more companies do not take advantage of these efficiencies. It appears quite evident that with some off the shelf software and some minor customization, most service companies could do so much better. Let me tell you about a project we developed for our service comp
* Borrowing. This can be the most expensive. Borrowing can increase the purchase price by up to 300% and put a financial drain on the business.
* Investment side fund or sinking fund. A sinking fund can be costly for a business since investment gains may be subject to taxation.
* Installment payments. Relies on making installment payments from corporate reserves when there may be better uses for the business capital.
* Life Insurance. The life insurance death benefit provides tie cash to fund the buyout. For just pennies on the dollars compared t
It occurred to me the other day, that so many people today liken their businesses to the way they eat - fast. Think about it. All over the web we are inundated with... make $1000's of dollars a day, make $10,000 a month, make a million by the end of the year. Everyone is looking for the magic formula or the magic bullet to get rich quick...fast. They want their business to succeed in the time it takes to get their hamburger or chicken sandwich. No wait, no delay of gratification. I want it now, and I wa
Will they be forced to liquidate the business, or a portion of it, at a loss? Forced liquidation could have the following results:
* Sale may not return the fair market value of equipment and inventory.
* Outstanding accounts receivable will be difficult to collect.
* Intangibles - such as reputation, customer-base and location - could be lost.
* Family control of the business will likely be lost.
Without proper plannings your business may die with you. How can you help ensure the successful continuation of your business?
The Solution
Business continuation planning is an important step toward the continuation of your business. Taking the right steps now can help give you several benefits:
Provide cash to buy out a deceased owner's share of the business:
* Ensure the business retains knowledgeable and informed ownership;
* Ensure that profits benefit active, rather than inactive, owners;
* Assure a ready market and fair price for your share of the business;
* Reduce economic pressure on heirs to liquidate other assets to pay estate settlement costs;
* Minimize the potential for disputes with the IRS over the valuation of your business.
Business Valuation Helps Eliminate Potential Conflicts
The first step in the creation of a business continuation plan is the determination of the purchase price - or the fair market value - of your business. Proper business valuation can help eliminate future conflicts between shareholders and the Internal Revenue Service (1RS). lf you fail to establish an accurate value for your business the IRS will establish one for you. This may be an expensive mistake - one that costs both time and money.
Often, owners of closely held corporations have a difficult time ascertaining what value the IRS might use for their business for federal tax purposes. Essentially, they use four methods for calculation purposes:
* Book Value
* Capitalization of Earnings
* Discounted Future Earnings
* Years Purchased Method
Funding the Buy-out
A business continuation plan isn't worth the paper it's written on unless a source of funding exists for the buy-out.. There are several options available:
* Borrowing. This can be the most expensive. Borrowing can increase the purchase price by up to 300% and put a financial drain on the business.
* Investment side fund or sinking fund. A sinking fund can be costly for a business since investment gains may be subject to taxation.
* Installment payments. Relies on making installment payments from corporate reserves when there may be better uses for the business capital.
* Life Insurance. The life insurance death benefit provides tie cash to fund the buyout. For just pennies on the dollars compared to
Peek a Boo - We See YouDoes your company have a description for a full-time job that says "Stand in the booth and hand out brochures."?Doubt it."Working the booth" often falls to the person closest to the show site, or part of a sales team. So, staffing for trade shows might be haphazard, considered a reward for sales performance, or based on corporate marketing criteria.Then the question becomes how many people in a booth and what should they do? These are the basics t
* Family control of the business will likely be lost.
Without proper plannings your business may die with you. How can you help ensure the successful continuation of your business?
The Solution
Business continuation planning is an important step toward the continuation of your business. Taking the right steps now can help give you several benefits:
Provide cash to buy out a deceased owner's share of the business:
* Ensure the business retains knowledgeable and informed ownership;
* Ensure that profits benefit active, rather than inactive, owners;
* Assure a ready market and fair price for your share of the business;
* Reduce economic pressure on heirs to liquidate other assets to pay estate settlement costs;
* Minimize the potential for disputes with the IRS over the valuation of your business.
Business Valuation Helps Eliminate Potential Conflicts
The first step in the creation of a business continuation plan is the determination of the purchase price - or the fair market value - of your business. Proper business valuation can help eliminate future conflicts between shareholders and the Internal Revenue Service (1RS). lf you fail to establish an accurate value for your business the IRS will establish one for you. This may be an expensive mistake - one that costs both time and money.
Often, owners of closely held corporations have a difficult time ascertaining what value the IRS might use for their business for federal tax purposes. Essentially, they use four methods for calculation purposes:
* Book Value
* Capitalization of Earnings
* Discounted Future Earnings
* Years Purchased Method
Funding the Buy-out
A business continuation plan isn't worth the paper it's written on unless a source of funding exists for the buy-out.. There are several options available:
* Borrowing. This can be the most expensive. Borrowing can increase the purchase price by up to 300% and put a financial drain on the business.
* Investment side fund or sinking fund. A sinking fund can be costly for a business since investment gains may be subject to taxation.
* Installment payments. Relies on making installment payments from corporate reserves when there may be better uses for the business capital.
* Life Insurance. The life insurance death benefit provides tie cash to fund the buyout. For just pennies on the dollars compared t
One of the key factors to a successful fundraising event and future fundraising events is to follow up with the supporters, volunteers and participants after the fundraiser is completed and the numbers are tallied!Taking the time to add that personal touch will go a long way in the eyes of your supporters, participants, volunteers and sponsors. Take the time to send them a thank you card and thank them for the time spent helping through out the fundraiser. This will help assure that they are plea
* Assure a ready market and fair price for your share of the business;
* Reduce economic pressure on heirs to liquidate other assets to pay estate settlement costs;
* Minimize the potential for disputes with the IRS over the valuation of your business.
Business Valuation Helps Eliminate Potential Conflicts
The first step in the creation of a business continuation plan is the determination of the purchase price - or the fair market value - of your business. Proper business valuation can help eliminate future conflicts between shareholders and the Internal Revenue Service (1RS). lf you fail to establish an accurate value for your business the IRS will establish one for you. This may be an expensive mistake - one that costs both time and money.
Often, owners of closely held corporations have a difficult time ascertaining what value the IRS might use for their business for federal tax purposes. Essentially, they use four methods for calculation purposes:
* Book Value
* Capitalization of Earnings
* Discounted Future Earnings
* Years Purchased Method
Funding the Buy-out
A business continuation plan isn't worth the paper it's written on unless a source of funding exists for the buy-out.. There are several options available:
* Borrowing. This can be the most expensive. Borrowing can increase the purchase price by up to 300% and put a financial drain on the business.
* Investment side fund or sinking fund. A sinking fund can be costly for a business since investment gains may be subject to taxation.
* Installment payments. Relies on making installment payments from corporate reserves when there may be better uses for the business capital.
* Life Insurance. The life insurance death benefit provides tie cash to fund the buyout. For just pennies on the dollars compared t
Maybe it played for Kevin Costner in “Field of Dreams,” but that paraphrased line – “Print it and they will come” – doesn’t necessarily work in real life.There’s a lot to be said for the value of editorial side coverage, but you can’t count on people acting on what they read or even remembering it for long. The smarter bet is to find ways to leverage your coverage to enhance the odds of driving more prospects in. Here are some fairly easy ways to do it:First, create a short synops
Often, owners of closely held corporations have a difficult time ascertaining what value the IRS might use for their business for federal tax purposes. Essentially, they use four methods for calculation purposes:
* Book Value
* Capitalization of Earnings
* Discounted Future Earnings
* Years Purchased Method
Funding the Buy-out
A business continuation plan isn't worth the paper it's written on unless a source of funding exists for the buy-out.. There are several options available:
* Borrowing. This can be the most expensive. Borrowing can increase the purchase price by up to 300% and put a financial drain on the business.
* Investment side fund or sinking fund. A sinking fund can be costly for a business since investment gains may be subject to taxation.
* Installment payments. Relies on making installment payments from corporate reserves when there may be better uses for the business capital.
* Life Insurance. The life insurance death benefit provides tie cash to fund the buyout. For just pennies on the dollars compared t
Many small businesses have a natural aversion to marketing. That’s understandable because marketing can be intimidating if you don’t know what makes marketing work.In my marketing blueprint there are eight steps to successfully generating productive, response driven marketing results.1. MINDSETMarketing is a mindset. A mindset based on your own integrity and belief in your service. When someone asks you what you do for a living, instead of telling them your profession, begin to
* Borrowing. This can be the most expensive. Borrowing can increase the purchase price by up to 300% and put a financial drain on the business.
* Investment side fund or sinking fund. A sinking fund can be costly for a business since investment gains may be subject to taxation.
* Installment payments. Relies on making installment payments from corporate reserves when there may be better uses for the business capital.
* Life Insurance. The life insurance death benefit provides tie cash to fund the buyout. For just pennies on the dollars compared to the other funding methods, the surviving partners can plan for a means to buy out heirs and to retain control over the business, and the deceased owner's interest can be converted into cash for the heirs.
The Benefit of Using Permanent life Insurance
By using a permanent life insurance policy, rather than term life insurance, the corporation or business owners can access the policy's account value through loans and withdrawals. This can provide the funds needed for a buy-out during lifetime if you or another business owner wants to retire.
Which Business Continuation Arrangement is Best for You?
Which arrangement you chose depends upon a variety of factors, including the type of business you own - a sole proprietorship, partnership or a closely held corporation - how many owners are involved, and the owner's financial goals.
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