Small Business Health Quiz (Part 2)

Regardless of national events, or where things are with PPP and EIDL loans — as a business owner, it’s important that you take a REGULAR, clear-eyed look at the underlying legal and financial foundations of your business.

I started with these last week, and I’m wrapping them up today.

From last week…

#1: Is the value of your business firmly established?
(Buy/Sell Agreements)
#2: Is there an emergency plan?
(Will & Asset Protection Strategy)
#3: What happens next?
(Business Succession Plan, and more)

Now to the next questions…

#4: What are your retirement plans?

Questions to consider:

  • Do I know how much income I will actually need at retirement?
  • How much control in the business must I maintain to secure my retirement income?
  • Have I looked into financing options for key employees to buy me out?
  • Do I want to be running my business, full-time, five years from now?

Too many business owners view their business as their “retirement cash cow” … but have not made serious plans for how it can BE that cash cow.

#5: Are all of your eggs in one basket?

Questions to consider:

  • Do I have reliable investments, other than my business?
  • Will my business assets account for less than 25% of my retirement plans?
  • In the past year, have I spent more than one hour planning my retirement?

If you haven’t diversified your retirement income outside of your business, you could be in trouble.

#6: Is there a REAL tax strategy?

Consider these questions …

  • Am I proactively planning to deal with tax law changes?
  • Have I determined my financial goals — and how taxes will affect them?
  • Will I maximize my tax-free earnings in retirement (and before retirement)?
  • Do I have an exit plan for my business — and is it written down?

Again, all of these issues always seem “procrastinate-able” on the front end … but if you don’t have a good answer to more than a couple of the above questions, you might be subject to a rude awakening in the future.

We will either help you fix these issues ourselves or put you in touch with someone competent who can help fix them.

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