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DRIVE VALUE

BY KIMBERLY A. SMALL, MANAGING PRINCIPAL, KLARITY FINANCIAL

Why Drive Value in Your Business?

A

valuable business means a strong legacy and a comfortable retirement. Here are eight steps to help you get there. Will you want or need to leave your business one day? 79 percent of all business owners said they would exit their company now if they could have financial security, according to the 2016 Business Owner Survey from Business Enterprise Institute, Inc. What will your post-exit look like? Spending time with the grandchildren? Traveling the world? Doing charitable works? These things cost money – determine how much. Do you know what you have? Take inventory of everything you have, such as homes, cash, investments, retirement accounts, real estate and the value of your business. Do you understand your gap? What is the difference between what you have and what you need? How will you make up the gap? For most business owners, the difference will come from increasing value in the business. This is the fun part that most business owners enjoy from day-to-day, and the very reason for driving value! What constitutes good value? Good value includes: a stable, motivated management team; a documented and proven growth strategy; a solid, diversified customer base and significant, defensible market-share; scalability, a differentiated product/service, and competitive advantage; operating systems that increase and improve stable cash flows; recurring/sustainable revenue, resistant to “commoditization”; and financial foresight and controls/strong operating margins. What is the end result? You’ll be well-positioned for a sale when you’re ready; you’ll have the money you need to live your post-exit life; and you reduce the risk of “surprises” when you do decide to exit. Need help? Visit klarityfinancial. com/contact. Disclaimer: always consult your

legal and tax advisor during the business planning process. Klarity Financial LLC is a registered investment advisor. This article is intended to provide general information. It is

not intended to offer or deliver tax, legal or specific investment advice in any way. For tax or legal advice, please consult a qualified tax professional or legal counsel. For more information about the advisory services or fees of Klarity Financial, please review our Form ADV2. Klarity Financial will provide all prospective clients with a copy of Klarity Financial’s Form ADV2. Please contact us to request a free copy via digital or hard copy. s

Kimberly A. Small, CLU, CFP, MST, is the managing principal of Klarity Financial. Her practice is dedicated to the Greater Boston construction industry, where she contributes to the overall success and wellbeing of individuals and owners of construction companies. She can be reached at kimberly@ klarityfinancial.com or (617) 733-4441.

Three Generations of People Protecting People The Herlihy

Construction Division We speak your language. Our Construction Division has specialized in your industry for over 85 years. Contact us today and see the in your business. Property/Liability | Fleet Automobile | Workers Compensation | Surety Bonding Contractors Equipment | Group Health | Subcontractors Design E&O Pollution Liability | Railroad Protective

888-756-5159 www.herlihygroup.com/construction 51 Pullman Street, Worcester, MA 01606

Jim Herlihy CIC, CRIS jimherlihy@herlihygroup.com Mark Herlihy CIC, CRIS mherlihy@herlihygroup.com

Member: Associated Subcontractors of MA | Builders Association of Central MA

The Professional Contractor

13

The Professional Contractor - Spring 2018  

In this issue, get to know ASM’s 2018 president; Cannistraro moves into bigger digs; and ways to save money with your ASM membership.

The Professional Contractor - Spring 2018  

In this issue, get to know ASM’s 2018 president; Cannistraro moves into bigger digs; and ways to save money with your ASM membership.