By Jeffrey Frankhouser, CEPA, MRFC, CEP
Problem: I’m sure you’ve heard this analogy before, your business is likened to the seat of the three-legged stool. Your job as the business owner is maintaining balance between all three legs.
One leg represents the day-to-day operations, the building of the business.
The second leg represents the exit plan. How do you harvest the years of blood, sweat & tears of your successful business?
The third leg represents the windfall, and how will you handle a retirement that could last 30 years or more?
Solution: As a business owner, you started this business with one of two goals in mind. 1) Control your own destiny, and 2) Build wealth. There is no other reason. According to recent surveys, 49% of business owners have done no planning in that direction.
Monitoring your business valuation is important to know whether you’re growing or dying.
Having a written succession plan is important as a goal to maximize the sale proceeds of your efforts.
Being able to handle the windfall is important because most business owners largely depend upon the business sale and taxation will play a large part in your financial lifestyle.
To learn more, check out resources for business owners at: www.Covenant-Business.com
Remember, we help business owners sleep better at night!