Purposeful Planning for Business Owners



 It is important to not only receive an accurate value but to understand the important parts of how the value is calculated. Purpose can help you know what you may want to do to increase your business’ value. You will receive an analysis of how your business ranks in your industry, both nationally and locally in valuation and 12 Key Performance benchmarks so that you can see where you may be able to increase the value of your business.

Personal Plan

Now that you know the value of what your biggest asset is probably, let’s work together to come up with a plan that will work for you and your family. What value will you need to sell the business for? Will you be able to sell on an installment basis or will you need to receive it in one lump sum. If you do sell the business by installments, who will you sell it to? Is that someone already working at the business?  Let’s review enough scenarios so that you can get comfortable that you will be able to reach your personal and business goals. 

Business Plan – (Maximizing Your Business)

Review Costs

In most small businesses, you or someone on your team had to learn as you went along where and how to make purchases for the business. Rather than only relying on your existing knowledge you can probably benefit from a team of specialists who have over 30 years of experience in this area. This team works to find new ways for your business to cut costs. The specialists will provide a free estimate and you will have no up- front costs. They will only get paid from a portion of the result of the savings they create.

Review Debt

Is your business financed correctly? Have you been able to get the optimal terms from your bank for your business’ needs? Did you know that each SBA lender has their own criteria? If you applied for any type of business loan you may have assumed that most lenders would offer you the same as the institution you applied with. This is most often not the case. Allow our specialist to review your situation at no charge. After finding out about your business and its’ needs they will do their due diligence to see if they can improve your financial situation.

Increase Revenues

Do you know if your business is in a position to grow at a significant level? Significant growth doesn’t mean incremental growth of a few percent a year, but doubling your growth over the next 5 years? It might be possible to do this by going through a proven system that increases you and your team’s ability work on the business rather than just in it. There is no cost to find out if your business has the foundation on which you may make a significant increase in your business’ revenues, profits and value.

Purpose uses a proven (Haydenrock) system you will also be able to see how your well your business is poised to take advantage of the opportunities around you. If after the initial survey to help determine the quality of the foundation of your business you decide to go through the full system, one of the most important results of the process is that as your team gets involved they will have the opportunity to learn how to work together like ‘navy seals’.

Lower Taxes

Has your CPA recently looked at whether your business is structured in a way that can improve your tax or liability situation? We’re happy to work with them and/or bring in tax specialists who are up on all the new (and right) ways to save business owners on their taxes.

Do you own the property that your business is in? Have you done a lot of improvements? Did you know that you may be able to lower your taxes by decreasing the number of years on your depreciation schedule for these improvements? Have you owned the property for a while and didn’t know about this opportunity? No worries, it is possible to ‘look-back’ and be able to still use this strategy to receive a significant tax cut.

Do you have an appreciated asset (perhaps your business) that you would eventually like to donate to an established charity of your choosing? You may have hesitated to do this because you still want to run and eventually sell your business. In other words, you would like to donate and reap the tax benefits by doing so but you need most of the sale proceeds to fund your retirement. Did you know there is a way to accomplish all these things? Yes, depending on your situation, you can receive a full donation for the donation of an asset and still have access to it (or proceeds of the sale) yet keep a high percentage of the proceeds and the charity will eventually receive the value of the business. Talk with Purpose to see if a ‘Charitable LLC’ may be appropriate for you.

Optimize Retirement Plan

Does your company have a good retirement plan? Have you held off on implementing one due to the cost? There are several retirement options, some of which are extremely low cost that Purpose can provide for you. With good options available along with local investment counselling and management experience we provide education to you and your employees, so they may prepare for the future.

Do you currently have a 401k, but as owners you want to put away more than what the 401k allows. You may be able to put away $100’s of thousands of dollars into from a fully insured pension account. No, this isn’t the expensive pension accounts you may have heard of. This is a plan that funds the retirement using conservative whole life with administrative fees of about $1,500 per year.

Reduce Risks

Now that you know the value of your business, it may be time to make sure that you have the right protection in place for your family. How about your other personal risks? If you are considered to have high net worth do you have enough liability protection on your home or auto?

Do you have the right protection for your business? It is important to have a thorough analysis so that you may be protected for the right risks and not overpay for protection that you don’t need. Additionally, if your business has about $3 million in revenues or more it may make sense to create a ‘Captive Insurance company’ where you actually lower your risk in a more tax efficient way as well as potentially putting more money away for retirement in a ‘tax-advantaged’ way.

Purpose can provide these and other services as needed through its network of proven local and national specialists so that the Business owner is able to accomplish all their goals. Making the complicated simple and never forgetting the significance of your plans, Purpose is here to help.

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