IMPLEMENTING A ROADMAP TO TRANSITION A BUSINESS
It’s estimated 75% of business owners have no exit strategy. Now is the time to do this. Let us make this as easy as possible.
Step 1 – Determine significant business timelines – such as:
Step 2 - Eliminate business debt and set-up "self-financing" program that will:
1. Increase Cash Flow
2. Create Financing Flexibility - No longer subject to bank restrictions and able to leverage every dollar twice for purchases
3. Decrease Taxes
Increased cash flow from eliminating debt/interest payments will allow the business to:
1. Expand operations/workforce
2. Boost Marketing budget and increase sales
3. Increase/implement a company retirement plan
Step 3 – Establish Comprehensive Business Continuity Plan based on significant timelines in Step 1
Step 4 – Implement a Comprehensive Legacy Plan that allows:
- Owner Retirement and continuation of business after retirement (Sell to 3rd party or family member/key person)
- Selling of business if desired before retirement
- Other important operational planning and business goals
Step 2 - Eliminate business debt and set-up "self-financing" program that will:
1. Increase Cash Flow
2. Create Financing Flexibility - No longer subject to bank restrictions and able to leverage every dollar twice for purchases
3. Decrease Taxes
Increased cash flow from eliminating debt/interest payments will allow the business to:
1. Expand operations/workforce
2. Boost Marketing budget and increase sales
3. Increase/implement a company retirement plan
Step 3 – Establish Comprehensive Business Continuity Plan based on significant timelines in Step 1
- What if Owner dies – Buy/sell with family member or key person or 3rd party sale
- Implement cost reduction and tax saving programs that make business more profitable (and more attractive to potential buyers if wanting to sell business)
Step 4 – Implement a Comprehensive Legacy Plan that allows:
- Company to leverage every dollar into $10 - $15 (depending on interest rate) in order to maximize owner's retirement plan that will provide tax free income that is double that of taxable 401k income
- Partial In-house financing when selling business
- Tax Mitigation & Tax planning when selling business including setting up a Deferred Sales Trust to defer capital gains taxes (in consultation with company CPA)
- Estate planning that provides a Legacy that lasts for generations