My Small Business Health Quiz (Part 2)

"The question isn't who is going to let me, it's who is going to stop me.” - Ayn Rand

Last week, I began asking you a series of questions, and I'd like you to consider the questions I'm asking thoughtfully.

Please consider these six issues as you grow your business—they can sometimes catch you off guard.

So, here are the final 3 (with last week's questions listed as summaries)

We're in your corner with these weekly blog posts/

Even if "business is good" right now, part of our role is to help point out potential potholes along the future path for our fellow investors.

This is why I'm here to ask you some questions.

It's a bit different from the approach I usually take in my Strategy Notes, but it can be a transformative process if you take it seriously.

From last week...

#1: Is the value of your business firmly established? [Buy/Sell Agreements]

#2: Is there an emergency plan? [Will & Asset Protection Strategy]

#3: What happens next? [Business Succession Plan, and more]

Now to the next questions...

#4: What are your retirement plans?

Questions to consider:

• >Do I know how much income I will actually need at retirement?
• >How much control in the business must I maintain to secure my retirement income?
• >Have I looked into financing options for key employees to buy me out?
• >Do I want to be running my business full-time five years from now?
• >Do I have contribution protection for my retirement if I become disabled?

Too many business owners view their business as their "retirement cash cow" ... but have not made serious plans for how it can BE that cash cow.

#5: Are all of your eggs in one basket?

Questions to consider:

• >As an REI (Real Estate Investor), diversification is viewed differently. To achieve the safety of diversification, choose several different real estate investment vehicles: single-family, multi-family, warehouses, hotels, syndications, and private notes. Each category has its own “weather system.”
• >Do I have reliable investments other than my business?
• >Will my real estate assets account for over 75% of my retirement plans?
• >In the past year, have I spent more than one hour planning my retirement?

You could be in trouble if you haven't diversified your retirement income outside of your real estate hustle.

#6: Is there a REAL tax strategy?

Consider these questions ...

• >Am I proactively planning to deal with changes in tax law?
• >Have I determined my financial goals, and how will taxes affect them?
• >Will I maximize my tax-free earnings in retirement (and before retirement)?
• >Do I have an exit plan for my business -- and is it written down?

Again, all of these issues always seem "procrastinate-able" on the front end ... but if you don't have a good answer to more than a couple of the above questions, you might be cruising for a financial bruising.

I'm grateful for our chance to serve you and your business through these weekly blog posts, and we are dedicated to its success in every measure.

BE THE ROAR not the echo®

Please forward this article to a business associate or client you know who could benefit from this blog.

Warmly, Janet, The Tax Wizard