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tion in small communities. "What do you do about a busiThe Imperial Republican ness before you just close it?" she About 30people attended a meet- questioned, so that a community ing concerning the transition of doesn't lose that business. Randy Raile of BW Telcom of business ownershipTuesday night Benkelman said hisfamily'sfourth in Imperial. "Planningfor Business Success" generation business is a case in was sponsored locally by banks in point. In 1989his parents, the owners of the area, BW Telcom and Farm Credit Services of America in Im- BW Telcom at the time, were killed in an auto accident. There was no perial. A presentation on the Rural En- plan of succession in place, and not terprise Assistance Project, or much estate planning. Althoughhewas able to takeover REAP, was the main focus of the operations, Raile said that under evening. Sponsored by the Center for Ru- other circumstances, "the people ral Affairs, REAP consists of the you might want to sell to might not elements of networking, business have the same morals and values." management training, credit and Small business is the character of little communities, he noted. Whnical assistance. As representative6 cf businesses ' "Sometimes it's better to have a withirl the froM Graiif, Wauneta,f m@l'fa1 and ~!d;usirlesssuccessorfio~n Benkelman listened, Tara Hosick community. "Find an individual and teach oftheNebraska Department of Economic Development explained that them how to run the business," he when a Business Expansion and urged. How do you retain those indiRecruitment survey was made in Chase and Perkins Counties re- viduals? Raile said a good pension cently, the main concern was the plan and split-dollar life insurance transition of ownership of busi- to ensure longevity are the answer. FIc also suggested a business nesses. She said the concern was not just evaluation for the true value every for the critical needs of the busi- 10 years or so for IRS records, life ness, but also for the aging popula- insurance on the key business per-
By Carolyn Lee
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son to pay down taxes, and "last to die" insurance, for the healthofthe business concerned. Dana Beck of the Center for Rur a l w a i r s explained REAP'S"Harvesting the Entrepreneurial Venture" to the group. Business succession is important, she stated, because one third of business owners in theunited Statesareoverthe age of 55. According to the Small Business Administration,the primary cause for business failure is lack of planning. At some point, every business owner leaves their business, she noted, whether voluntarily or otherwise. Over two thirds of owners expect their business toremain in thefamily, whileonly 35percent surviveto the second generation. R t T s i r , a owners &so tHihk there is plenty of time to make a written strategic plan. Beck said an advisory team can aide in a business succession plan. Team members may be an attorney, accountant, lender and financial planner and/or business consultant. The team and business owner willassess the current healthofthe business, identify priorities, set time frames and communicate
with each other. Beck said the place to start is by updating the business plan, networking with other businesses, and identifying candidates as potential business transfers. She also said that besides the team of advisors, a business owner might want to reach out to successors such as young adults and alumni from the community. Another plan is to involve youth in the community, to make them aware of business opportunities. The evening was organized by the Chase-Perkins Counties Hometown Competitiveness Program, in partnership with the Imperial, Perkins County and Wauneta Chambers of Commerce. The project is funded in part by a grant from the Nebraska Depar!.ment of Economic-rievefopinent administered by the Nebraska Rural Development Commission. Leslie Carlholm, Economic Development Director for the City of Imperial, said representatives of the Creighton University School of Law will be in the area Feb. 11 to talk with business owners interested in creating a plan of succession. She may be contacted at the city offices for more information.
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