What Is Business Planning?
So, what is business planning? Essentially, business planning is having a well thought out, clear, and concise plan for the future of your business. This plan will effect not only you and your business, but also the future of your loved ones. Business planning is essential for anyone who owns a business. Have you been looking forward to the day you can retire, turn your business over to a son or daughter, or sell it? Even if you are not planning to stop working, you need to plan for the day you cannot run your business. That day could come due to unforeseen illness or death.
Planning your exit from your business should be an integral part of your estate and retirement planning. Proper planning now can provide:
- A retirement income
- Reduced income and estate taxes
- The possibility of benefiting a charity (even if you transfer your business to family members at discounted values, to employees, or to an outside buyer)
Most business owners do not take the time to plan for how they will leave their business. They may be busy running the company, or perhaps they don’t know where to start. If you continue to own a business until you die, it will be included in your estate and could be subject to substantial estate taxes. Your family could be forced to sell the business or its assets at “fire sale” prices. You will have worked hard all these years so that the vultures and Uncle Sam will reap the benefits rather than your family.
The first step towards having a sound business plan is finding the answer to the question, “what is business planning?” Now that you know, it’s time to take the next step. If you would like to discuss your business planning options, please call our office and schedule an appointment with Justin M. Gilbert.