Questions every business owner needs to be able to answer
If you’re like the majority of business owners, your business represents the lion share of your net worth. In fact, surveys conducted estimate that business owners have on average 95% of their net worth tied up in their business!
With this much on the line can you answer these 10 questions?
- Besides your salary, what is the total amount of consideration you receive from your business?
- What value do you need to get from your business, after tax that would equal the consideration you are pulling from your business each year?
- How much money do you really need to maintain your life style?
- What is the real-life value of your business?
- Based on a successful sale of your business, at what age do you run out of money?
- What tax strategies have you created to limit the taxes on the transfer of your business?
- What tax strategies have you created to limit the amount of estate taxes when you die?
- Have you established a plan for what you will do after you retire?
- If transferring your business to your children, 70% of business successions fail, have you developed a plan to insure their success?
- Do you have a contingency plan should something happen to you before you are able to exit from the business?
If you do not have a satisfactory answer for any of these questions you need an Exit Plan.
The Leland Group first started with the Exit Planning Institute in 2008 and is a Certified Exit Planning Advisor (CEPA). The CEPA designation is the only exit planning designation recognized by the Financial Industry Regulatory Authority (FINRA) and is the most widely accepted and endorsed professional exit planning program in the world.
While other firms may tout exit planning, The Leland Group is a certified advisor by the nation’s leading authority on Exit Planning.
The Starting Point
The first step in creating an Exit Plan is to complete the Owner Readiness Assessment survey and the business operations assessment along with a real-life business valuation performed by a certified business appraiser.
What Exit Planning Accomplishes?
Establishes a Business Valuation Baseline Creates a Personal and Business Plan that:
- Lowers Business Risk.
- Avoids Asset Concentration.
- Maximizes Value of Company for the purpose of an Exit.
- Properly values your Company.
- Helps Preserves Wealth for Later Generations.
- Lowers or Eliminates Capital Gains Taxes.
- Creates Peace of Mind.