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… and we like it that way, but it is still important to think ahead and make sure you’re going the right direction.  As an example, I went swimming in the ocean, thinking that the challenge of the currents and waves would add a new element to my exercise program.   I thought the swell and wind would be the challenge but what I found out was the biggest hurtle was keeping my direction straight.  I wanted to swim along the beach, outside the surf line, but since there was no line to follow, like the bottom of a pool, I was swimming all over the place.  I eventually got there but I had to work much harder and longer than I planned.

Estate planning is the same way as the line on the bottom of a pool.  You can keep your head down and swim as long as you have a plan that your trying to follow.  Every once in a while you will need to lift your head up and look around, re-adjust your direction and start going again.  All that I’m saying is a dream, without a plan, is a wish.  Read that again and think about it for a minute.  If you have no plan, then you only have a wish.  Some wishes come true but more likely than not, you end up tired and just want to quit.

The world of estate planning is complex with many options available.  In a very basic sense consider setting up a will or trust for the family when you die, life and disability insurance to cover the costs of your burial/injury, investment opportunities for future cash flow and a personal budget to manage expenses.  All of these areas have specialists if you have a complicated estate, but for the typical person like me, it doesn’t take a whole lot of time or money to put a plan in place.

Take the time, make the time, and plan for the exit of your business and the exit from this world.  We all eventually leave this planet so you can’t say you didn’t know.  Make it a little easier on those you leave behind and put an estate plan together today.

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Tags: business exit planning, business planning, Exit Strategy, retirement, sell my business