You also Know the importance of keeping the books balanced, hiring qualified employees , beating the competition and meeting ever-increasing customer service expectations.
But until you address the issues of retirement planning, business continuation and rewarding and retaining key employees, everything else could be in jeopardy.
What would happen to your Business, in the event of you death, retirement or even if you were to become disabled? Your Dream, your time and energy that you have spent to create this business would be jeopardized. In-turn with the appropriate business continuation planning, you can ease your worries and safeguard your business. You will have created a foundation to were you business will continue in succession after you are gone.
What is business continuation planning?
Simply put, business continuation planning is the process of defining and implementing a plan of succession. We define and assist in creating a Buy-Sell Agreement, Proper business continuation planning will establish who will run your business in the event you become disabled,retire or die prematurely.
Ensuring the continuation of your business with a properly drafted Buy-Sell Agreement will provide more than just a mechanism for transferring the business. It may save you thousands of dollars — and hours — by eliminating the costs, delays and frustration of IRS contests and litigation. When properly drafted, a Buy-Sell Agreement will establish the value of a business for the purposes of federal estate and gift taxes.
Did you Know …
- Only about 1/3 of small of small businesses offer some kind of retirement saving program to employees. Fewer than 10 % offer non-qualified programs for the owners and executives.
- Life insurance is not a top priority for these business. Group life is the least common employee benefit, only 1/3 have business life insurance for such things as key person coverage, and life insurance is next-to- last executive benefit the firms would bring in.
- Seven in 10 small business owners have thought about who would run the business in their absence, but only 25% have formal retirement succession plan and only 35% have formal continuation plans in the event of their death.
- Family -owned businesses are less prepared for future transition than non family businesses.
- Just over half have personal IRA’S and fewer than 20% have annuities or pension plans.
Source : Small Business Owners 2009. LIMRA Int’l, 2009 James O. Mitchel