into making their business sustain itself long term, it is of the utmost importance that they have the professional guidance so they are moving in the right direction and are free of costly errors and setbacks. Without proper legal advice, a company can get set up incorrectly, or without proper liability protection, threatening the future of the business. Ongoing legal support of the company can ensure the growth of the company continues to flourish with tax efficient strategies and limited liability.” She also notes, “It is equally imperative for business owners to review their estate plan periodically to ensure their estate planning documents reflect the current status of their business. This is essential to protecting the family if an unexpected death of the business owner occurs. It is really important that the estate plan of the business owner reflects any business succession plan and changes that might be made over time.” Preparing for Transition Among the professionals you might want to consider bringing into the mix, a trusted business advisor is also a valuable resource. The buying and selling of businesses happens regularly, and as such, many people will be planning to do one of the two, whether it will be happening in a few months or in a few years. This can be a complicated matter, so it’s important to have the guidance in place so that you’re doing exactly what you need to do at the appropriate intervals so that you stay on the path to the ultimate goal. “With respect to business planning, our expertise lies in helping our clients prepare for a transfer of ownership as well as planning accordingly for any period of transition,” says Jethro Hopkins, owner of No Coast Business Advisors. “Whether it Jethro Hopkins be selling the business or passing the torch on to the next generation, we join forces with No Coast Business our clients’ team of accountants, financial Advisors
advisors and lawyers to plan for the transition so everything goes as smoothly as possible. If you are thinking about selling your business in the next couple of years, it’s crucial to focus on the financial records now. This alone will play a major role in the business’s value when it comes time to sell. It’s important to track all transactions, especially purchases, as a part of the profit and loss statements. Having a legitimate paper trail for all of the business’s finances can actually increase the value of the business because you have quantifiable proof to show potential buyers. Moreover, it is wise to begin paying yourself as an employee as opposed to taking your cut of the business’s profit. It’s all about strategizing to get the most for your business, so presenting the most accurate reports of overall revenue (and profit) of the company is critical. It’s very hard to sell a business if the reported cash flow is under $100K, which is classified as a “microbusiness,” but those above that number seem to do quite well in the current market. If you need to get your business to that point in 12 months or less, you’ll need a somewhat aggressive, quick-start strategy in place. No Coast Business Advisors just began offering the NAABB Marketing Academy program, which I highly recommend as a cost-effective way to have access to local consulting services on a regular basis as well as a plan to follow backed by proven results from participants nationwide. For those who may not be planning to sell in the near future, market valuations are still the most critical of our offerings to have done. This provides a benchmark of its value which can be referenced for all sorts of things, such as loans, future planning, partners, dividend payout estimates, and much more. We recommend that any business get one done annually at the very least. The program that I just mentioned also has a second phase that helps businesses get to $1M annual profit, so if growth is in the plans, it can certainly help you get there too.” Talent Acquisition and Development Human resources is a core area of any business with employees. Many times, working with a staffing company is the perfect way to take the bulk of human resources tasks off the plates of those who have no formal training, putting it in the capable hands of the experts. Partnering with a staffing company, like Nesco Resource here in Lincoln, can have a positive impact all year long. If a company is in need of temporary help, using a staffing company provides the people resources to complete the job without the commitment of a long-term hire. For permanent staffing needs, a staffing agency allows companies to make sure the employee is the right fit before they hire by providing temporary to hire options. For skilled and professional positions, utilizing the resources of a staffing company means candidates can be pre-screened and evaluated based on their qualifications prior to being considered by the company. This cuts down on the volume of non-qualified candidates and provides for better use of the time and resources of the company. By using a staffing company throughout the year, a business can avoid all the administrative processes that come with hiring, allowing them to focus on other priorities. It’s not only about finding the right people, and what you’re doing to attract the best and brightest professionals, but developing those minds once they’re a part of your workforce (this may have even been happening beforehand if you’re lucky and the groundwork has already been laid out ahead of you). “We assist our customers in the business planning process by focusing on their most important resource – their people,” emphasizes Don Tomlinson, Chief Information Officer at Talent Plus. “Our focus is on the selection and development of individuals, working to put the right individual into the right position. This starts before they are officially hired. Do they have the talents to be successful in that role? Once they are onboard, how do we develop Don Tomlinson them? In addition, we know that every Talent Plus
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Strictly Business JANUARY 2017