Business Owners

Common Business Owner Mistakes

Mistake # 1: “I know what my business is worth”

• Have I ever had my business value appraised by an outside resource?
• Do I have a formal buy sell agreement?
• Is my buy sell agreement funded?
• Has my buy sell agreement been reviewed within the last three years?

Mistake # 2: “I’m too busy running the company”

• Do I have a will and is it up to date?
• Do I have a plan to retain my key employees if something happens to me?
• Have I had my Trust & Estate Plan reviewed in the last 3 years?
• Are my assets protected from potential creditors?

Mistake # 3: “That will never happen to me”

• Do I have a formal succession plan prepared and on file?
• Have I involved key employees and family in my succession planning?
• Have I identified and written down who I want to run the company?
• Do I have disability buy sell or overhead expense coverage?

Mistake # 4: “There’s plenty of time for that”

• Do I know when I want to retire?
• Do I know how much income I will need in retirement?
• Do I know how much control in the business I must maintain in order to secure my retirement income?

Mistake # 5: “My business is my retirement”

• Do I have substantial investments other than my business?
• Will my business account for less than 50% of my retirement planning?
• Have I created income from more than four sources outside my business?
• Have I had my retirement income projected to identify shortfalls?

Mistake # 6: “You can’t beat Uncle Sam”

• Have I determined and written down my financial goals?
• Will any sources of my retirement income be received tax free?
• Do I have an exit plan for my business and is it written down?