- Have any questions?
- contact@financiallysimple.com
- All
- Accumulation planning
- Business Planning
- Debt
- Dentist
- Education Planning
- Estate Planning
- Exit Planning
- Financial Planning
- For Millennials
- For the Investor
- Heritage Investors
- Investments
- Joseph's Ridge Garden Journey
- Joseph's Ridge Journey
- Lifestyle
- Market Update
- Media
- News
- Podcast
- Retirement Planning
- Savings
- Small Business
- Tax Planning
- Tax Tip
- Uncategorized
- USA Issues
- Videos
August 17, 2017
Tuesday we looked at the danger of trying to drive the value of your business up for the purpose of selling it. Today I’m going to tell you how to increase the value of your business long before you pass the torch on. Have you ever wondered what makes one company more valuable than another despite the fact that they are in the same industry? Well, I’m going to give you several points you can work toward achieving. However, the most vital component is honestly, planning years in advance. So what steps should you take to begin your exit? Here are a few. When I work with business owners, there is nothing that excites me more than to show them how the value of the company directly affects their net worth. According to the Exit Planning Institute, 80 to 90% of a business owner’s net worth is tied up in their business. Many times business owners, especially in the beginning stages, focus only on driving the revenue up. While profits are what one the most important factors when it comes to selling your business, it’s not the only one. Focusing solely on making income may line your pockets while you […]
August 15, 2017
As a business owner, personal financial planning is key to getting to the next stage of life, whether that’s retirement or just a change in direction for your own personal gain. This is where you reach the point where you ask yourself, “Is my business worth the amount of money that I need to transition to the next phase?” Here’s the thing, when it comes to entrepreneurs, they’re audacious, a pain in the butt if you will. We see a mountain, and we start climbing. Failure just isn’t an option. We might fall, but eventually, we will reach the peak of that mountain or die trying. Many of my clients have already sold their businesses or transitioned it to their children or a charity, yet, they’re still asking that same question. Why is that? Why is that? Let’s say for example I need $2 million in investable assets which produce income for me to maintain my standard of living. When I examine my modified net worth statement, it shows that I am only at $1.5 million and a majority of this net worth is my businesses value. So, I am about $500k short of my goal. That’s where the business value […]
August 10, 2017
When it comes to philanthropic giving business owners are often at the top of the list. Giving allows them to experience personal satisfaction as well as shelter some of their proceeds from Uncle Sam. Not only do they give on a regular basis, but many of my clients want to give a portion of their proceeds to their favorite charity upon the sell of their business. These donors/business owners are firm believers that they need to give some of the proceeds to a charity. Those charities run the gamut. Some are based on religious beliefs, while others are merely philanthropic desires. Typically, the number that seems to always get tossed around is about 10%. So if they sold their business for $5 million, they’d give $500k of the sale to the charity of their choice. This is definitely a noble and altruistic action. It is also important to note that a lot of people take different approaches to accomplishing this. I’m going to give you a little insight on how you can do just that. All the while, maximizing the money that you end up pocketing. Let’s look at some numbers to give you an idea. Here’s an example of […]
August 10, 2017
Here are some insights into my new CEPA designation or Certified Exit Planning Advisor. When it comes to owning a business, it’s been stated that 80-90% of our net worth is tied up in our business. Many times business owners will go out and hire an investment advisor, pay them 1% to manage small portion. Yet, we’ll look all around trying to figure out how to grow the value of your business. So what I’m showing you today is something you’ll want to tuck away to help you when you do sell your business. Because as a business owner, we want to grow the businesd so that at any time we can sell it. Let’s look at how a business is valued and how to drive that value up. THIS IS NOT VALUATION 101! This is just a simplified version of what CPAs can do to place a value on you greatest asset. First, understand that there’s a bell curve. Most businesses sell with a multiple. Within the bell curve, there’s a rule of five. The average multiple most business sells for is five times. On the left side of the curve, we have 1-4 times, and on the right […]