Business plans typically only focus on the growth and market success of the company – but seldom address protecting the value and income your business generates.
Your business plan is a guide to success. It sets the direction for the business and identiﬁes potential weaknesses. It communicates the Mission/Vision to stakeholders and can assist in raising capital when needed. A Business owner’s focus is entirely on operating and growing the business.
As the business grows and achieves greater success it becomes a more signiﬁcant part of an owner’s wealth. The challenge, however, is this is concentrated and illiquid wealth. This exposes a deﬁciency in traditional business planning. There are no provisions to protect the wealth and income of the business for the owner, the owner’s family and key stakeholders. Also absent are clear and deﬁned strategies to ultimately unlock the wealth in the business.
The standard business plan document contains a well thought out plan for growth and success but nothing about protecting and unlocking the wealth being created.
A failure to plan and budget for protecting and unlocking business wealth is a huge oversight. As a result it often never gets done or comes too late resulting in great expense and potential loss of value.
Business Value Protection Planning™ completes the business plan. It beneﬁts all stakeholders. It includes planning to protect business wealth and anticipates how owners will unlock the wealth. Annual Valuations both measure progress and guide planning decisions.
By making this a part of the overall business plan it puts it on the agenda. This increases the likelihood that it all gets done and remains current. It creates accountability. Over time this planning, just like Growth planning, will evolve as the business grows and changes.
• What is your plan if something happens to you, your partner or a key employee? Do you have the right legal documents and insurance in place to mitigate wealth and income loss?
• What is your plan to unlock the wealth concentrated in your business? Is your plan written and coordinated with your personal planning? Is your plan tax eﬃcient and designed to help you keep more?
Business plans have been around for a long time. The next generation of business plans will include strategies to protect business and ultimately unlock owner wealth. Does your current business plan do all this? You spend a lifetime building your business/legacy. You deserve to protect and receive the maximum value. We can help make that happen. Call us a to learn more about getting a more comprehensive plan for your business.
Contributed by Doug Marshall