Tag Archives: financial

Investing in Your Own Business: Will It Pay Off?

A few months ago a business owner asked me to evaluate an acquisition offer for his small business. It was from a larger company headquartered in a different region of the country. They had a branch operation in his city, and wanted to expand … Continue reading

Posted in Building Value, Business Perspectives, Economic Trends, Entrepreneurship, Exit Options, Exit Planning, Life After, Selling a business, Strategy and Planning | Tagged , , , , , , , , , , , | Leave a comment

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Goals are More than Just Resolutions

Most of us (at least those who don’t own retail businesses) are in low-power mode at this time of year. Double midweek days off and decompression following the holiday rush allows us time to think. For many, that thinking naturally turns … Continue reading

Posted in Entrepreneurship, Leadership, Managing Employees, Strategy and Planning | Tagged , , , , , , , , , , , | 2 Comments

2 Responses to Goals are More than Just Resolutions

  1. Frank Benzoni P.E. Retired says:

    Once again a great adaptation of what to do and why – Excellent writing John !!

    Frank

    Merry Christmas and a Happy 2015

  2. Claud Gilmer says:

    Hi John!
    Good info & timely reminder!
    Here’s to a successful 2015!
    Thanks, Claud

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Key Man Policies May Not Cover a Buy/Sell Agreement

Over the last few weeks, I’ve had a number of conversations with clients about key man insurance. Let me say at the outset that I don’t sell insurance, and have no financial stake in whether any client has coverage or … Continue reading

Posted in Entrepreneurship, Exit Options, Exit Planning, Strategy and Planning | Tagged , , , , , , , , , | 6 Comments

6 Responses to Key Man Policies May Not Cover a Buy/Sell Agreement

  1. Frank Benzoni P.E. Retired says:

    John

    Another “Wide Awake Article” – To be advised is to be prepares, and you continually do that.

    Always look forward to the next !!!

    Thank you

    Frank

  2. John,

    Agreement that key-man insurance policies should be separate from buy/sell – ownership agreements. Having lived through the unexpected loss of two employees, I would encourage small businesses to look beyond ownership when considering key man insurance as part of their disaster planning process.

    Brad

  3. Mike says:

    Another type insurance to consider is whole life purchased using Section 79 Insurance.
    Allows the company to pay for the insurance ( deduction to the company) owner pays tax on only part of cost, however beneficiary is the stock holders estate ( or wife) .
    Company pays for policy , stockholder owns and benefits from it directly.
    Can tied funding this to some part of stock valve in the future.

  4. RICH FREELAND CBC says:

    John- My 43 years in the life business has taken me into many areas of practice. The usual KEY MAN POLICY is usually designed for one purpose only.It is to cover the loss of a “Key Man” such as a top salesman that brings in more than 50% of the companies business or an engineer or project manager that a company could not operate or complete a job if they should die. Buy and Sell agreements are usually to cover owners , partnerships or corporations for death or long term disabilities to owners or stock share holders to keep the business from imploding or having to deal with non producing spouses or minor corporate owners.All these plans should be drawn up by a law firm that is experienced in Business Law! not Legal zoom! The last thing is making sure that the agreements are funded with the proper products to meet the contracts specifications in the B&S agreement. I would shy away from Sec 79 plans in funding these agreements and look at the latest IRS rulings on SEC 79 use in business insurance? Comments Welcome! RICH FREELAND CBC

    • John F. Dini says:

      Thanks Richard. I agree that key man policies should be used for critical employees as well. I know dozens of companies, however, where key man covers the owner, who does not function in a sales or client management role, and the owners’ belief is that the benefit will be used to purchase stock from their families. As to the applicable IRS codes, you illustrate my point that such instruments must be carefully constructed by a professional such as you.

  5. Todd Marquardt says:

    A key man insurance policy is different from a buy sell insurance policy. You hit the nail on the head. The purposes are different.

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Should a Small Business Have a Budget?

“I know that my company is doing OK,” the old joke goes. “I still have checks in my checkbook.” Many small businesses run on a version of checkbook accounting, where anything that isn’t paid out at the end of the … Continue reading

Posted in Strategy and Planning | Tagged , , , , | 4 Comments

4 Responses to Should a Small Business Have a Budget?

  1. Carol Mansen says:

    I found in my consulting practice that the small businesses that have the discipline to create a budget also have the discipline to manage their business well. It is a way to the business perspective to pro-active instead of reactive.

  2. Brad Elmhorst says:

    Extremely important if a business offers healthcare to employees. “Life changing events” include a spouse who loses coverage and now enrolls in your family plan.

  3. I agree, every small business must have a specific budget for their marketing campaigns. A successful business always start from planning to budgeting, to planning and implementation.

  4. In every business there should always be a budget.

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What is Your Company Worth?

A business owner hires a financial planner to help him with his retirement options. They review the owner’s current assets, his house, stock portfolio and other investments. They go over his insurance coverage. Then the planner asks, “What about your company? How … Continue reading

Posted in Business Perspectives, Exit Planning, Selling a business, Strategy and Planning, Top Blog Posts | Tagged , , , , , | Leave a comment

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