The family business is an Icon in North America representing the growth in our industry and economy. However, family businesses are in jeopardy today, not so much because of burdensome taxes or corporate predators, but more so due to inadequate business planning. It is extremely rare for a family business to successfully transition to a third generation.
As a business owner, part of your day is undoubtedly involved in a variety of planning activities
1. How you are going to produce your product?
2. How you will market to your customers
3. How you are going to raise the capital for expansion? etc.
Business Needs Planning and Priorities
A business owner, or professional, faces many challenges, not only in the day-to-day management of the business, but also in ensuring its long-term viability. Most however, spend more time managing the day-to-day activities and do not plan for the long term.
You have worked hard to build a successful business and there are other important issues that are not considered on a day to day basis that are equally vital in your business planning:
What are your main areas of concern?
To maintain and attract quality employees - Employee Benefit Plans, Executive Compensation
To protect your business against the loss of a key employee - Key Employee Insurance
To Ensure that should your retire or should something happen to you, your business would survive and be passed to person or people that you would want to own and manage it - Business Succession Planning
In addition to the above, you, the business owner, generally have other concerns about the business, the ownership of the business, the executive group that makes the business a success, and the employees who get the work done.
Insurance, savings, and investment products can play a large role in all of these areas.
The following is a list of some of the areas where planning services and products find application in business:
Recruiting and Retaining Employees:
Group benefit plans
Salary continuation plans
Deferred Compensation Plans
COLI (corporate owned life insurance)
Pension Plans (IPP)
Retirement Compensation Arrangement (RCA)
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Ownership Succession Planning
Key Person Planning
Estate Planning Strategies
Our Business Planning services enable you to address any or all of these concerns allowing you to plan for the eventual transfer of your business to heirs or associates, based on your personal desires. We can assist you in retaining and rewarding select key employees and help you ensure that the business you have spent your time and energy building, will be successful long into the future.
The following are some questions that you might want to consider:
Who will take over my business should I die prematurely, become disabled, critically ill, or simply decide to retire?
As a business owner, this is one of the most important and difficult questions to answer:
Do you have a family member of members ready to take over the business? Have you selected and trained an associate to succeed you?
The answers to these questions will decide how smoothly any transition in ownership could occur and if your business could survive without you. In addition, they will also determine the economic impact on your family.
Proper business continuation planning can help ensure that your business and the people, whose income and lives depend upon it, will succeed when you are no longer at the helm.