November 24, 2017
charitable remainder trust

Is a Charitable Remainder Trust for You?

Did you know that you could sell a business or a highly appreciated asset and not pay a dime in taxes? I know what you are thinking. Yes, it does sound too good to be true. However, this is not one of those cases. It is absolutely possible with a charitable remainder trust. Check out this video to find out how! 
August 20, 2017
hire a certified exit planning advisor

Why You Should Hire a Certified Exit Planning Advisor

For most business owners, their companies are their babies. Just like your own children, you pour all you can into your company so that when they become independent from your guidance, they can stand on their own. That means when the time comes to step away from your business you can walk away knowing it will succeed. One of the best ways to achieve that for a business is to devise an exit plan. An exit plan is a strategically designed blueprint to sell your business for maximum profit or possibly even to cut your losses. Whichever side of the fence you fall on with your business the best way to achieve exodus is to hire a Certified Exit Planning Advisor (CEPA). They are well-trained individuals that help you formulate the best plan possible. Let’s look at why you should hire a Certified Exit Planning Advisor. The Value CEPAs are there to help you make informed decisions about your exit. They ask questions to garner the goals you have in mind, both personally and professionally. Your business has a value, and a CEPA is there to help you determine. Not only will they help you calculate your business value, but they will also […]
August 17, 2017

How to Increase the Value of Your Business

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
Debt-Free Living

The DANGER in Trying to Drive the Value of a Business

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 […]