Planning for Family & Small Businesses

“A business that makes nothing but money is a poor business.” – Henry Ford

Each small business and family-owned company has its own personality, its own set of values, and its own goals for success. Family-oriented issues of intergenerational transitions, ownership, trust and retirement must work hand-in-hand with the business issues of finance, strategic planning, and tax efficiency. As the business grows to the second, third and fourth generations, these issues become increasingly challenging.

Plan today for tomorrow’s transition

From a business perspective, having a long–term vision is crucial. A common understanding of that vision across the first and second generations of business owners can allow for a smoother transition.

Specifically, ownership succession planning can be one of the most important issues you will face as you gear up for transitioning your business to the next generation. While some members of the family may desire to create a multi–generational family legacy, others may not want to be part of the business. Alternatively, if you’re running a partnership or your business stands apart from your family you’ll be looking at different aspects of how to put together a coherent succession plan. Among many other things, developing a funded buy—sell agreement that allows the necessary parties or family members to sell stock back to the business or other family members could be an important consideration for you.

Retirement/financial planning is also important. If the first generation does not amass enough assets to support retirement, the business may need to be sold. If the business has grown in value significantly, estate planning will be important as well. To make the transition to the second generation, you may need an estate plan that helps ensure the stock of the business can be passed on to future generations without harming the cash flow of the business or the retirement of the first generation.

Efficient Wealth

We can help with all of these issues as well as helping you ensure the business is paying out income as efficiently as possible, and seeing to it that you’re aware of many of the advantages granted to you as a small business owner, from the Capital Dividend Account to tax advantaged gifting.

We know how hard business owners work and want to see you reap the financial rewards of that work in the most efficient manner. We can walk you through the myriad of options and help you implement the most appropriate strategy.

Whether you’re just starting out and have questions about incorporation or you’re ‘careening wildly toward your golden years’, it’s only natural to think about financial security for yourself, your spouse and your family. We can point out vulnerabilities and suggest ways to eliminate them so you can take the necessary steps to help protect what matters most to you.

Our financial security advisors also understand that it can be tough when much of your net worth and your potential income stream depends upon the family business. The considerations and trade–offs are complicated. They are why many aging business owners only ‘semi-retire.’ They have to stick around to protect their retirement nest eggs. It’s issues such as these that keep many of us up at night, and it’s issues such as these that we want to work through with you.

What is your financial plan doing for you?

Your financial plan should align with your goals and values. Let us help you create a map that will get you where you want to go.