Small business owners are usually focused on the day-to-day success of their business, taking care of employees, paying the overhead and hoping to achieve an attractive bottom line. They tend to take better care of the business that they do themselves. Personal planning may only be discussed when key transition matters arise, such as the addition of a partner, the changing of the business structure or an anticipated merger.

Not completing comprehensive planning for your business can leave it vulnerable to many threats. You probably think nothing will change, but that is not how events happen and procrastination can be dangerous to your hard-earned success.

Cadre can assist you with strategic thinking about your values and legacy before you muddle your mind with all the possible financial alternatives. A Family Financial Philosophy [FFP] mission statement is extremely important for the small business owner. There are many issues, questions and dilemmas to work through, but some of the basic value questions to resolve in preparation of your FFP mission statement include:

• Do I really have an heir capable of buying and running this business? Realizing that over 70% of second generation business fail, do I have enough other assets so I don’t have to depend on my heirs for my retirement?
• Would our FFP mission statement be better served by selling the business to a third party?
• How and when might I feel comfortable passing control to someone else?
• How do I treat my inactive heirs fairly and in a way that promotes good relationships among my heirs?
• Which relationships do I value most in life and how will my business succession decisions affect these relationships? How much value do I place on these relationships vs. tax savings and other financial considerations?

Personal strategic thinking – Being a small business or professional corporation owner can be a lonely, wearing endeavor. Oftentimes there is precious little time to think about an exit plan and the preparation for the next phase of your life. Most people are unsuccessful when there is an abrupt end to their activities. Grooming oneself for retirement is a medium range proposition requiring some experimentation with extended vacations, hobby and second career options, charitable activities and just plain re-inventing oneself. Cadre Financial has encountered many of these opportunities and we are an effective sounding board for your musings.