Your Business: Will It Have A Happy Ending?

"Begin with the end in mind," says Stephen Covey in his book Seven Habits of Successful Living. Those who have created a successful business know it does not happen without planning, hard work, and a little luck. Yet most have no plans for leaving their business, ever.

Entrepreneurs are optimists, but all of us will stop work one day. The truth is that most business relationships do not have a happy ending. The question is: Will it happen as I want or will it just happen?

Research in the UK indicates that 75 percent of small to medium-sized businesses have no exit strategy. In Canada, 92 percent of entrepreneurs say it is a good idea to have an exit strategy, but only 44 percent actually have one. In the US, more than 20 percent of small industrial business owners had not even thought about exiting their businesses. Even professionals like physicians, dentists, and veterinarians are ill prepared for exiting their practices. A survey of this group indicated that 96 percent believed that poor planning left them unable to exit their businesses on their own schedule.

Life shows us that we have to depend on ourselves. Yet we continue to believe someone else will someday take care of us. We will live on Social Security and income from the business that we created. The idea that your business will strive on to provide you income after you are no longer there is to believe that you have money in a Social Security account. Your company will not work for you after you are gone and there is no money in your account with Social Security. Still, we believe. It is time to look at reality.

You will leave your business in one of four ways. I call it the "The Four Ds of Leaving:" death, disability, divorce and departing. To have a successful business, you must plan for all Four Ds.

For the individual each one of the Four Ds has special demands on family, income, taxes and transfer of control of assets. The concern of the business is different. Your business is a separate entity and your concerns for family and income will conflict with the business desire to continue. The solution to the problem is mutually fair agreements and enough money.

Fair agreements that take in the concerns of all parties negotiated at the beginning of a business relationship will allow the participants to handle transitions when relationships change. And relationships will change. The agreements, commonly called buy/sell agreements, are used to handle the Four Ds. Unfortunately, many buy/sell agreements only address death at the urging of a life insurance agent. At the meeting, you arbitrarily decide how much insurance you can afford and how much your company is worth, when in fact you do not know.

Death is not as likely to end the business relationship as disability. If the person is important to the business, the financial strain is felt as keenly by the business as by the family who depended on the income. If the business is faced with choosing between survival or paying the disabled partner, it will survive.

You can imagine the torn feelings if a disability occurs, but what if the partners cannot get along? How do we split a partnership without financially ruining each other? It may be complicated by many personalities, some may not even be a part of the dispute, yet may be affected financially.

You may all be happy working together, but your partner or you may decide to leave for another opportunity or simply to take life easier. Who is going to do the work? What is owed the leaving partner? Where is the money coming from?

A number of questions cannot be handled in this article, but there are certain things that must be done: - The business needs to be incorporated into a formal relationship that legally recognizes that you and your business are separate entities - Devise a method determining the value of the corporation that can be done at least annually and will qualify under IRS standards - Develop an employee benefit plan that will assist with the departure of each partner in case of death, disability, or retirement - Finally, if we cannot get along or simply want to leave, who gets the company and who gets paid off and in what manner? If you think these decisions are hard now, try to make them in the heat of the moment. You have to think as if you are the one who wants to leave as well as the one who wants to stay. It is not easy.

The "Great American Dream" is to create a business of your own; to bring it to life and make it successful, financially. A truly successful business is one that makes you financially independent. How you leave will determine your financial success and that of your family. Just as building a successful business takes planning, hard work, and a little luck, so does leaving it.

Brent Dees, CFP, CSA is president of Brent Dees Financial Planning, http://www.brentdees.com, and a coach to small business owners, teaching the http://www.brentdees.com system of personal and business goal-setting.

executive chauffeured services Bradford .. Madison to Airport car
In The News:

Getting virus alerts on your iPhone? Tech expert Kurt “CyberGuy" Knutsson helps you learn how to handle fake scam alerts and boost security.
Tech expert Kurt “CyberGuy" Knutsson says opening emails is safe, but risks arise from interacting with links, attachments or HTML content.
Tech expert Kurt “CyberGuy" Knutsson reveals four signs of compromised Social Security numbers and offers five steps to protect yourself.
Tech expert Kurt “CyberGuy" Knutsson discusses how MAB Robotics' Honey Badger 4.0, a versatile robot, now walks underwater with amphibious skills.
An updated Android trojan called FakeCall hijacks bank calls. Tech expert Kurt “CyberGuy" Knutsson says Android phone manufacturers and Google need to step up their game on security.
The Massimo Modular E9 is a sleek, smart and comfy tiny home in 409 square feet. Tech expert Kurt “CyberGuy" Knutsson takes a closer look at what the future of housing might look like.
Every stock trader should consider a virtual private network to safeguard their trading, according to tech guru Kurt "CyberGuy" Knutsson.
Apple recently announced its new lineup of Macs and rolled out Apple Intelligence, its latest artificial intelligence-powered feature for its products.
A Swiss-engineered robot can climb ladders, showing why it's at the cutting edge of autonomous robotic solutions for harsh industrial settings.
Kurt "CyberGuy" Knutsson presents the cities targeted most by robocalls, why this is happening and what you can do about it to protect your privacy.
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents
Kurt "CyberGuy" Knutsson shares tips and suggestions for how to get the best use out of the updated Calendar app available with the latest iOS update.
Your Social Security number, your unique identifier used for many purposes, has likely been leaked on the Dark Web; here are some steps you can take to protect yourself.
Researchers have developed a new technology that creates strong, sticky fibers capable of lifting objects and capturing things from a distance.
Smart rings track the same things that smartwatches do, including steps, sleep and a general overview of your overall health, and they tend have more battery life than smartwatches.
Researchers have developed a robotic finger that can perform routine medical exams like those conducted by doctors, helping to address the growing shortage of trained professionals.
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.
Insurance administrative services company Landmark Admin reported that a data breach from a May cyberattack affected over 800,000 people.
Sotheby's will auction the first artwork created by Ai-Da, the world's first robot artist created in 2019 by British gallerist Aidan Meller.
More than 250 million users of the Verizon Messages app will have to switch to another app. Verizon is shutting down Messages in the next month.
Tech expert Kurt “CyberGuy" Knutsson provides a list of 10 celebrities who are the most targeted by deepfake scams, including Tom Hanks.
Tech expert Kurt “CyberGuy" Knutsson discusses how Vast's Haven-1, launching in 2025, transforms space living with human-centric design.
UnitedHealth confirms over 100 million Change Healthcare users had their data stolen. Kurt “CyberGuy" Knutsson reveals what happened and what caused the breach.
Tech expert Kurt “CyberGuy" Knutsson explains how iOS 18 brings new text formatting and animated effects to the Messages app.
Whether you're a social media veteran or novice, Facebook friend request scams are common. Kurt the CyberGuy provides tips to keep your account safe.

Action Planning

ACTION PLANNING: Action Planning is a process to develop strategies... Read More

Leverage - A Small Step For You /A Big Change For Your Career

Cassy was an employee of a nonprofit who had been... Read More

Hunters and Gatherers - Are You Serving Both Their Needs?

The University of Exeter in the United Kingdom recently published... Read More

Invalid Excuses for Poor Business Results - The Economy

Note to Rite Aid and CVS: It's not about the... Read More

Are You Aware of Planning in Business?

Human beings are rational agents. Rationality endorses one to take... Read More

Online Promotion: 10 Ways To Use Focus Groups To Ignite Your Profits

A focus group is a group of employees or current... Read More

SWOT Analysis

If you've ever listened to Warren Buffett talk about investing,... Read More

Offense: Beat the Odds

When in doubt, cut that out! Yeah, yea, doubting Thomas... Read More

Attributes of Companies You Dont Want to Buy!

There are no "rules of thumb" in the pursuit of... Read More

Business Plan: Planning the Operations

Writing a business plan is no easy task, sure you... Read More

Are You Ready To Go International?

Although North Americans were the dominant population on the Internet,... Read More

Strategic Planning Consulting

Strategic planning and consulting is the strategy roadmap to manage... Read More

Six Key Areas For Evaluating A Strategic Alliance

Strategic alliances are increasing at a rapid rate. It is... Read More

Pressure Washing Entrepreneurs Can Help With Government NPDES Permits

If you own a pressure washing business one of the... Read More

How Good Is a Business Plan To Your Business?

You know you need a business plan. You probably realize... Read More

Microsoft Great Plains in Aerospace & Defense industries ? implementation & customization highlights

Microsoft Great Plains fits horizontal markets clientele and in case... Read More

Restaurant Startup - Part 1: Market Research ? What are Potential Competitors Doing?

The first step in starting a restaurant is proper planning.... Read More

The Best Entity to Hold Real Estate

Possibly THE most frequently asked question of me is "What... Read More

Mobile Franchise Business Expansion Strategy

If you own a mobile franchise business and wish to... Read More

Three Easy Ways To Know Thy Competitor

"Did you hear what your competitor is doing?" This question... Read More

3 Ps of Planning - Prepare, Personalize, Pilot

Here's a really simple way to make sure your plans... Read More

For Business Owners Only - You Can?t Be Fired But Neither Can You Quit

The decision to sell, or not to sell your business... Read More

How To Prepare A Business Plan That Guarantees Big Profits

It is always said "If you Fail to Plan, you... Read More

If You Dont Focus, Innovate and Evolve, You Die

After 128 years of business, a household word, Montgomery Wards,... Read More

The Power of Planning

I am surprised how few sales professionals, independent consultants, and... Read More

O'Hare Chicago prom limo ..