In our November 2017 Newsletter, you will find out how to prepare your business for the worst-case scenario, how to beat the Monday blues, and a unique idea for what to do with those Thanksgiving leftovers! Check it out…
Preparing Your Business for the Worst-Case Scenario
A disaster or death impacting your company may be the last thing you want to think about, but to do what is best for your business, family, and employees, in the long run, it’s good to have a plan in place. Many business owners haven’t put together a disaster recovery plan because they simply don’t know where to
start. The plan will vary based on the nature of the business, but here are a few tips that may help you get started.
When you think of a disaster, usually a hurricane, earthquake or tornado comes to mind. The things that don’t come to mind though, which are just as devastating, are things such as a server blackout, building fire or, burst pipe. Both types of disasters can bring operations to a halt. It’s good to be prepared for as many possible negative scenarios as you can think of. Each company has distinct functions that are key to keeping business running smoothly. Assess your risks both inside and outside of your business. Planning for ways to restore critical functions such as billing, shipping, and/or service fulfillment may help things proceed without any interruption. Plan an alternate work location in the event your facilities become inaccessible.
Talk to your vendors and suppliers about their recovery plans, and potentially develop relationships with alternates in the event your vendors are out of commission. Help employees form their own disaster recovery plans, as having a fully functioning office may be worthless without them. BACK UP YOUR DATA! In the information age, your data Is more valuable than ever. Assemble an emergency kit. Regularly review your business insurance to make sure you are covered for any risk that may befall you and consider business interruption insurance. Source: Cavignac & Associates
Death of a Business Owner
While some see it as morbid thinking about our death, most of us want to make sure our loved ones are taken care of in the event of unforeseen circumstances. Family and employees can be left confused and without direction, if a business owner passes away suddenly, or is left incapacitated and unable to work. Consider some planning strategies for the worst-case scenario.
Minimize estate taxes which can range from 35-50% of the business value and are due within nine months of your passing. Since most business assets are not liquid, paying estate taxes can require selling the business. Two IRS tax breaks, section 303 & 6166 alleviate tax burden for small business owners. Section 303 allows your estate to redeem your stock with very little tax cost.
Section 6166 offers estate tax deferral. If eligible, your executor can pay the estate tax in 10 annual installments. Additionally, consider coming to a buy-sell agreement, which is a contract between partners which establishes a plan for the business in case one of the owners dies or becomes incapacitated. A buy-sell lets you document whether or not you want your partners to buy
out your share, if you want to block certain individuals from having a role in the business, or
if you want your heirs to sell your portion.
In a family-run enterprise, many people choose to distribute assets based on a relative’s contribution level. Let’s say two of your children are going to take over the family business. Do you want your third, uninvolved child to have an equal share? Perhaps you want the two involved siblings to buy out the third. Regardless of what you decide, making these choices is critical. After all, the passing of a family member is hard enough to deal with on its own. Source: Legal Zoom
Fight the Monday Blues
Get an early start: Arrive 30 minutes early on Monday morning. Use this time to catch up on emails and review any to-do lists you may have.
Tackle a big task: Aim to complete an important item on your to-do list. Try to make it something you’ve been putting off for a while. It will make you feel more accomplished as you start your week.
Set time blocks: Schedule uninterrupted time to accomplish your goals. Program them into your calendar or set alarms for 60- to 90-minute intervals.
Make a plan: Before you start your weekend, make a list of what needs to get done on Monday. Prioritize your tasks for the week and note loose ends. That way, everything is organized when you walk into the office.
Self-care: Do something that will calm you down before you start off your work week. Pick an activity that’s relaxing and restorative, like spending time in nature or playing sports with friends. Source: Forbes