Small Business Owner Needs

BUSINESS

NEED

PERSONAL

NEED

Manage costs effectively – It costs money to run a successful company and implement safeguards to ensure its continuity. To survive in today’s competitive economy, small business owners must manage expenses carefully. By making cost-effective decisions and implementing tax-effective strategies, you can free up funds to support growth or other financial objectives.

Attract and retain the best employees – Attracting and retaining talented employees can be a challenge for small businesses. These days, steady work and reasonable wages just aren’t enough. Employee benefits can help to give you a competitive edge in the marketplace.

Get great rates on savings and loans – Small business owners often focus on negotiating the best rates on their financing and completely overlook the low interest earned on their savings. Look for banking solutions that can help you reduce borrowing costs and earn the highest possible returns on all of your short- and long-term investments.

Explore tax-effective strategies – Taxes are one of the top concerns or “pain points” for small business owners. Most small business transactions – from employee compensation to business succession planning and asset protection – have tax consequences. Understanding and addressing tax implications can make a difference to the success of your business and your personal finances.

Protect the business – Most small businesses have at least one person who is key to the success of the company. Their loss or injury could have a disastrous effect on the business’s ability to survive. Not only is their talent lost, but lenders may cut back credit or press for payment, debtors may delay making payments, customers may lose confidence and competitors may take advantage of the situation. Taking measures to ensure your business is in a position to continue is critically important should the unexpected happen.

Protect self and loved ones – No one plans to become critically ill or disabled or to die prematurely, but if it does happen to a business owner the financial impact on your family’s savings and lifestyle could be disastrous. Living benefits products can help you mitigate these risks.

Grow personal wealth – With an effective strategy in place, you can spend less time dealing with personal investments and more time building your business. An advisor can help you choose the right solutions to match your financial goals and current stage of life.

Protect assets from creditors – Ensure that you have taken adequate steps to protect your personal assets. Many business owners don’t realize that their personal assets may be vulnerable to creditor claims. Develop a creditor protection strategy while your business is healthy. It is almost impossible to establish a plan once a business gets into trouble.

Save for retirement – According to a study released in 2005 ², more than half of the country’s current small business owners are expected to retire by 2020. Many small business owners rely on the sale of their business to fund their retirement. Combining succession planning with planning for your retirement can help you enjoy a financially secure retirement – without relying too heavily on the sale of your business.

Design a succession plan – Many small business owners have no clear plan for exiting their businesses. With identities closely tied to the business, the potential for intra-family conflict is high and the process of stepping down can be difficult. Developing your exit strategy can be complex and often requires a team of advisors knowledgeable in the areas of tax, law and business transition. Remember, it’s never too soon to start.

Create an estate plan – Finding the time to plan a legacy and ensure a smooth transfer of assets is often a challenge for small business owners. An estate plan needs to take into account your goals and objectives for the business, any business holdings, existing  succession plans (e.g., buy-sell agreements), personal assets and liabilities, the funding of capital gains tax liabilities, fair share inheritance and more. An ill-conceived plan can turn into a nightmare for your heirs. Estate planning issues can be complicated, so a good understanding of the principles of corporate, personal and estate taxation is key. You may

also require legal and accounting experts to help you sort out the complexities.