Estate Planning and Selling Your Business

Entrepreneurs are not well respected by the professional industry regarding planning ahead for the future.  Every time I meet with a CPA or Financial Planner they complain that their clients don’t do enough to prepare for the future and come in only when there is a problem.  I have to be honest and say I’m the same way, not only in business, but also with going to the doctor and the dentist.  I’m not proud of this personality trait, or some might call it a disorder, like my wife, but there never seems to be enough time to plan.   I also get frustrated when I do take the time to plan and then it all goes to hell in a year or two anyways.  What I’m telling you is that I understand but I do it anyways and so should you.

We all know that it’s important to see a doctor and dentist regularly but I would argue that it is just as important to meet regularly with a financial planner.   Your life constantly changes…

Requirements After the Close of a Business Sale

Whether you sold your business or just want to close it down there are some required steps to consider before you go off and sit on the porch, checking the box called DONE.  Whether you are a corporation, partnership or sole proprietor, there are items that need to be done to wrap up the organization and consider both from a business perspective and a personal perspective.  

First, there are business considerations associated with closing down and they relate to the government, debt resolution, asset liquidation, and employees.  My first recommendation is to set an appointment with your CPA and discuss your specific situation.   Our goal is…

Why Change Your Company Entity Type?

The way to start off the question really should be…do you know what type of entity your company is and do you know why?  Most business owners decided to incorporate because “everyone” told them they should.  So they called their local attorney, referred by a friend , and asked them to incorporate the company before moving back into their daily grind.  The problem is that there are consequences to this decision that can cost you thousands of dollars every year and maybe 10′s of thousands at the sale of your business.

I am no attorney or CPA, so this is not legal or tax advice, but it is real life advice.  Every business owner should know what type of corporate entity…

Retire or Transition – What is PC?

I met with a business coach today and we were discussing the exiting process of a business and the emotional struggle that owners experience.  We talked a lot about the steps to sell your business and where a business coach would be helpful.  Personally, I am a strong supporter of having a business coach and have used one for many years, as I struggled with my balance between business and personal goals.  Like many of my fellow entrepreneurs, my business and personal lives were often intertwined and that caused conflict in both worlds.  There were, actually there still are, many times in my life that the right business decision was not the right personal decision.  Since all final business decisions came down to me, as the owner the Company, I had no one to bounce my internal dilema off with.  My coach was very good…

Can You Afford to Sell?

I know there are business owners who want to sell their business but the real question should come down to if they can afford to sell it.  What I mean by “afford” is, after the sale, is there enough after tax money to move on.  Business owners are always asking for the value of their business when they need to be considering how much they need to live on after they sell the business.  This evaluation is a crucial step in determining when and if to sell your business and should be evaluated very early in the process.  Unfortunately, there are too many sales that close and then the seller learns that they have to go back to work to cover their expenses.

In evaluating whether you can afford to sell your business there are a couple of suggestions I would like you to think about.  First, you need to come up with an existing personal budget that you are currently living on.  Some people track…

What’s Involved in the Selling Process – Step 3 of 3

So if you have been following the three steps then I am sure you are baffled that there is one more.  In the last Step 2 of 3 we ended at the Close of Escrow (COE) and  now your wondering what could possibly be Step 3.   We did it!!  We sold the business and closed escrow, congrats, but hold on tight there is still more to do.  The great thing here is you are not alone and most business owners who actually sell their business are so excited/tired/scared/sad and full of emotion they just walk around for a while and wonder what’s next?  Well that’s exactly what Step 3 is, what do I do now?

First, let’s make sure that I am only referring to business issues here, and am not a shrink nor counselor.  You will have to deal with your personal emotional life on your own.  I am here as a fellow SBO who has been there before and am only qualified to help explain and advise you on the business side.  My only advice is to be ready for a bumpy ride.  Just be aware…