Planning the Right Exit Strategy

Planning the Right Exit Strategy

We invest so much time and effort into our small businesses that it’s difficult to perceive an end to the whole process. Ultimately, however, there will be an end to your involvement in your small business whether it be for retirement, sale of the business, your own death, or simply the shutting down of the business. It is a good idea to have an exit strategy planned out ahead of time to protect the interests of you and your family.

Be Prepared

It is important to have a succession plan in place for your company, just like you plan your estate and write your Last Will and Testament to instruct how your personal assets will be handled after your death. Since there are many factors to consider with the change of ownership of a company, you will need to have a legal team available to assist with the legalities.

Communicate with the Future Owners

There is always the option of transferring your company to a family member or a long-term management partner. This option can provide you peace of mind knowing that your legacy will be cared for and nurtured after you depart the company. It is important to discuss your intentions with the future owners and make them aware for their own life plans. Part of your succession plan will be to ensure you have the right people to run your business when you step aside.

Selling the Company

Selling your company to an outside buyer and walking away completely is certainly a viable option for your exit strategy. It is important to have the company properly valuated and to set realistic expectations for the value of your company. Oftentimes a company’s value can surprise the owner either positively or negatively. Although selling the company to someone who has not been involved in the process with you may be difficult, it will also be a fair sale free from emotional attachment, which could mean more money for you.

Be Proactive

If you have the luxury of planning your exit strategy, it’s important to do so as far as two years in advance. Barring any unforeseen accidents, this should be a task for which it is straightforward to plan ahead. The longer you give yourself to plan your exit strategy, the more certainty you can feel in your decisions. If retirement or a business sale is on the horizon for you, be sure to start thinking of your exit strategy so you can plan to do what is best for the company you have worked so hard to build up.

The more organized you are the easier it will be to execute your exit strategy and enter the next chapter of your life, whatever that may be. If you need assistance with planning an exit strategy, your financial advisor from The Beacon Group of Assante Financial Management Ltd. can help guide you.

Why You Need an Estate Plan

Why You Need an Estate Plan

Estate planning is more than simply writing a will, although that is an extremely important part of estate planning. Planning for a time after your death might be a morbid thought process to undertake, but it is important to organize your estate in advance of death in order to make the process simpler for those ultimately involved in the administration process. It also allows the future deceased to be extremely clear where and how the assets are to be distributed upon death. Even if death is not in the foreseeable future, having a plan already laid out will mean that you have complete control over the situation.

Assess Your Assets

If the majority of your assets are in liquid form in bank accounts, simply add whomever you have as your executor as joint on all bank accounts and investments. This will help to minimize the necessity for probate and will provide immediate access to all funds. Be certain the person you have listed as joint on all accounts is someone you trust as they will have full access to all money with their name attached to it.

Have a Say in Your Funeral Process

If you have personal preferences as to how you would like your funeral to be conducted and how your body is to be treated after death, be certain to outline this clearly in your estate plan. There is no communicating once you have passed on, so make your wishes and desires abundantly clear in advance.

Guarantee Business Continuity

If you play a major role in a business and your death would change the dynamic of daily operations, it is important to outline clearly what it is you would like to have happen with your share. It is not always possible to predict your death, accidents happen all the time. If you play an integral role in your business it is the responsible thing to do to set up a contingency plan for future operations in the event of your death.

Not Just for the Wealthy

Estate planning is not a task simply for the wealthy. Everyone should plan their estate, even if by just writing a simple will and having your say on who will be in charge of handling your estate once you are gone.

Planning for death is not a desirable topic of conversation. It is, however, a very realistic and intelligent conversation to have. No one is going to live forever, so by taking some time to do diligent estate planning while you are still capable, you can help ensure the future of your loved ones. The Beacon Group of Assante Financial Management Ltd. offers estate planning and inheritance planning services to make the transition easier for your family.

Planning for Retirement as a Small Business Owner

Planning for Retirement as a Small Business Owner

When you own your own business you might live under the mantra that your business is your retirement plan. This can sometimes work out to be true, but it’s not always a guarantee. You do not want to enter your retirement years without a solid financial plan already in place. It’s not enough to rely on CPP to cover all of your living expenses and maintain the quality of life to which you have grown accustomed. Here are some financial plans that might be helpful to have in place long before retirement is on the horizon.

Equity in the Business

It is possible that your succession plan is for you to retain shares in a class where you can claim dividends to supplement your retirement income. If your company is large enough to do this and still thrive then that is certainly a viable option; however, many small businesses would not be able to sustain this type of dividend. It’s important to talk with your financial advisor well in advance of your retirement years to plan if this is the right move for you.

Registered Retirement Savings Plan

Investing in an RRSP is the most secure way to ensure you have money available to you when you need it in your retirement. By making sizable and regular contributions to an RRSP portfolio, you can ensure that your retirement fund has grown to a sufficient size by the time regular withdrawals need to occur. With different investment options available you have the potential to grow your retirement fund over the course of many years.

Real Estate

Since small business owners can’t depend on a pension plan it might be wise to invest in real estate. This can be done by purchasing income property or simply by ensuring your own mortgage is paid in full. Having your own property be mortgage free by the time you want to retire leaves you with the option to sell and make a nice deposit into your retirement fund. Real estate has been known to be a dependable source of income over the years.

As a small business owner you have to juggle many different things on a daily basis. You may not be close to your retirement years but it is imperative that you invest in yourself and in your future in order to retire in a way that is comfortable for you. It’s never too early to start. Speak with your financial advisor from The Beacon Group of Assante Financial Management Ltd. to make the best choice for your future.

Unlocking the Power of Superfoods

Unlocking the Power of Superfoods

Everywhere you look these days, you come across the term superfood. In magazines, cooking shows, commercials, and online ads, a lot of buzz has been generated around the term and that is with good reason. Healthy eating is always something we should strive for as busy working adults; however, there is something to be said about stocking up on the right foods.

Which superfoods and why?

We can’t be expected to do a complete overhaul of our diets and our schedules. We know we should all eat better than we do, and by arming ourselves with some information about certain healthy snacks we are more likely to transition them into our lives. Here are three superfoods that can be tied into any working professional’s busy schedule.

Blueberries

Try eating an entire cup of blueberries every single day. This can be easily done either in one sitting as a snack or as a topping on your morning cereal or lunch time salad. Studies show that eating blueberries regularly can help slow a decline in memory function and focus. In addition to helping maintain a healthy memory and a healthy heart, blueberries are a must have because of their high levels of folate, vitamin C, fibre and vitamin B6. With their undeniably delicious taste there is no excuse for you to not eat and enjoy at least one cup of blueberries every single day.

Green Tea

If having a coffee is part of your morning routine, try the healthier, still caffeinated, alternative of green tea. Green tea is a superfood that is easily assimilated into any morning or afternoon routine. Rich in antioxidants, green tea is the natural replacement for coffee while still providing you with the burst of caffeine you may require to start your day. There have been many studies done linking cancer prevention and drinking green tea and, although nothing can be said conclusively, there is evidence that leans towards green tea’s assistance in the prevention of some forms of cancer. If there is a fighting chance you can help your body stay healthy simply by drinking a delicious cup of powerful green tea every day, we should all be doing it.

Almonds

Another amazing snack that is incredibly easy to eat on the go, almonds provide the body with an excellent source of fibre along with a dose of iron, calcium, potassium, vitamin E, and magnesium. They can easily be snacked on while working at your desk, which is a much healthier alternative to reaching for a bag of chips to satisfy that afternoon craving. Try to mix them with some dried cranberries for a bit of variety.

Healthy eating is simple to accomplish if you integrate different superfoods into your daily routine. By adding a few healthy superfood snacks to your daily diet you will quickly be able to see the positive effects shine through your work output and energy levels.