Small Business Health Quiz

Small Business Health Quiz

These are questions that might raise a few concerns, and that’s fine — it’s what we’re here for. Alongside establishing clear measurable for success (KPI’s), these are the sorts of things that effectively growing small businesses really need to get a handle on, regardless of their tax situation.
I like to share these questions regularly with my people, to ensure we’re headed in the right direction.
And further, 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.
As we all pull our tax documentation together, I can’t think of a better time.
This is a bit of a different approach than I normally take in my Strategy Note, but if you take it seriously … it can be a transformative process.
Take a look at each of these questions.
#1: Is the value of your business firmly established?
Questions to consider:
  • Have I ever had my business value appraised by an outside party?
  • Do I have a formal buy/sell agreement in place?
  • Is my buy/sell agreement funded?
  • Does my buy/sell agreement adequately protect my heirs, my business, and my partners?
  • Has this agreement been reviewed in the last 3 years?
If you have any plans to someday extricate yourself from your business (and you should ALWAYS consider your exit strategy), these are critical questions.
#2: Is there an emergency plan?

Questions to consider:

  • Do I have a will, and is it up to date with my business wishes?
  • Do I have a plan to retain key employees if something were to happen to me?
  • Are my assets protected from potential litigation?
  • Have I identified and written down my trusted advisors?
Unless you plan to forever cheat death, a business owner would be foolish to not prepare for that event.
#3: What happens next?

Questions to consider:

  • Do I have a formal succession plan prepared and on file?
  • Does my succession plan have a provision for disability?
  • Have I involved both family members AND key employees in my succession planning?
  • Do I have a disability buy-sell, or overhead expense coverage?
  • Do I have contribution protection for my retirement if I were to become disabled?
Again, these eventualities always seem remote on the front end … but if your answer is “no” to more than a couple of the above questions, it would be a good idea to get in contact with someone competent to help you fix it.

Leave a Reply

Your email address will not be published. Required fields are marked *