Business strategies to help your business succeed. Most small businesses fail to plan for business continuation in case of an owners disability, retirement or death.
You can Improve your company’s strategic planning and execution when you formulate intelligent business strategies and communicate these plans throughout the organization.
Business planning requires careful thought and analysis. Implementing proper business strategies will help your company reach its desired objectives. Risks can be reduced and profits increased through proper planning.
Most small businesses fail to survive beyond the first generation.
One reason is the failure to plan for the disposition of the business at an owner’s death, disability, retirement or withdrawal.
Where the appropriate plan of action would be to sell the business interest, establishing a formal plan for the sale of your business may be one of the most important actions you ever take with respect to your business. A buy-sell
agreement is one way to help ensure the continuation of your business, guarantee a buyer and help make sure your family is taken care of financially.
A buy-sell agreement could help not only protect the value of your business, but also reassure your business creditors, customers and employees.
What is a Key Person Plan?
One of the integral factors to the success of any business is its key employee(s). Many times, particularly in a small business, this key contributor wears many hats.
This Key Person may be the small business owner, a sales manager or other key positions. What happens to the business in the future if one of these key contributors becomes disabled or dies suddenly? The loss to any business can be devastating, particularly in a small business.
An executive bonus arrangement (also referred to as an IRC Section 162 plan) using life insurance allows a business to reward key executives generally on a tax-deductible basis.
The installation of an executive bonus program within a business offers:
Under an executive bonus plan, the executive owns the life insurance policy and has the right to the policy cash value. The employer sometimes sees this as a problem and can use a policy endorsement restricting the executive’s ability to use the cash-value.
To learn more about business strategies and how they can help your business succeed, contact us for a meeting.