Family Business Owners live in fear of being the sinking ship. What happens to them, and their family if they are the one who brings their business down? There is one easy solution that can help them plan through a range of unforeseen financial events.
When it comes to their personal finances or forward planning, many Family Business Owners bury their head in the sand. They make excuses [I’m too busy] which does nothing but place them more at risk. Instead, they should do this:
Go to “Plan B”
Business succession planning is made all the more clearer when a “Plan B” has been created by an advisor for retirement. By planning early, the level of emotion that can influence decisions, is greatly reduced.
A strong Plan B will succeed, even if the business doesn’t.
It’s time to go…
Knowing that their financial issues are in order enables business owners to exit their business without the risk of negatively impacting on their retirement and lifestyle.
A good Plan B is one that conservatively estimates – or ignores the business’s ability to contribute to future retirement plans. It should focus on lifetime goals and provide protection against bankruptcy.
The young Business Owner
The younger the Business Owner, the more value a risk management plan and personal insurance plan. Young families need protection. They need to deal with a range of issues that may occur as the result of death. They need to know how the business transfers to a new business partner without taking money from the family.
Never underestimate the power of the present
The best time to plant a tree was 20 years ago, the second best time is today. The same applies for planning ahead. The sooner it is completed, the better.
If uncertainty is one of the biggest threats to success, a Plan B goes a long way to removing many threats.
If you want more information on this strategy, download a copy of our special report for family businesses: “Your Financial Legacy Roadmap”.