Isn’t that odd? you know you have to keep asking simple questions if your business is to continue its success.
Why? Because the answer changes over time. You can use this as a metaphor for cooking. In the 1950s, the answer to the question “How long is it to heat last night’s leftovers?” was “Maybe twenty-five minutes in an oven.” In the 1980s, it was “Three to four minutes in the microwave.” Today the answer is “Leftovers.” Single-serve containers are the best because I have no leftovers!
Smart business owners also know the answers to these critical questions. Here are the 5 frequently asked questions by business owners and the answers.
#1: “Can my growth be managed?”
You won’t be in business no matter your age or the length of time you’ve been in it. If you don’t keep growing, you won’t last. This is best achieved by thinking holistically. Your business is not your entire life. However, it serves as a tool to help you achieve the life that you want. It would help if you integrated your business into your life.
Brian Haney, founder and vice-president of The Haney Company in Silver Spring (Maryland), says: “While there are many questions, the underlying theme of them all is: ‘How can I maximize profit for myself both now, and for the future?'”
#2: Should I hire an expert, or can I do everything myself (Can I do all the work, or is it easier to hire experts?
You will need to consider integration and decide how far you are willing or unable to delegate specific tasks. Focus on the most critical functions if your goal is to grow. While they are often crucial to your success, other areas can also be necessary, but only in an indirect way. If they become too much, it can lead to failure.
When running a company, integration is crucial. Most companies don’t have an HR rep. They have one person responsible for everything from payroll to client orders. Integration is effortless these days. Integration is easy with many payroll providers. You don’t have any reason to continue using the bundled programs of your payroll provider if integration is your primary concern.
#3: How can I reduce my taxes, and do tax savings offset those tax cuts?
Haney’s statement about “the best tax-efficient way possible” is a reminder of this principle. It applies in all aspects of your life and business. This is where a professional (a tax adviser) can be a good choice.
Daniel Milan, Investment Advisor and the Managing Partner of Cornerstone Financial Services, Southfield, Michigan, says that he was asked, “How can the IRS and current regulations best be used to minimize or mitigate taxes.” As the owner and decision-maker, you have the privilege of making the decisions. You can also get the best advice.
A legal and benefits advisor may also be needed depending on how many “levers” are available.
The next step would be to discuss contributions to a retirement fund (which can defer taxes until you need withdrawals) and Health Savings Accounts. The final step would be to investigate deductions for business expenses and add family members to the payroll. While no one can avoid taxes entirely, we can ensure that your business operates at its maximum efficiency.
Common knowledge is that retirement plans can lead to substantial tax reductions. This is.
“How do I lower the amount I pay in taxes each year?” “It is a simple question I get from small business owners: “How much do you contribute to your retirement plan?”
#4: “What’s an excellent way to plan a retirement?
There are many options for structuring a retirement plan. It is essential to first identify the motivations behind your desire to create one. This is where it may be worth looking deeper than you think.
Tilisha CONLEY, G&A Partners in Houston, says that “my team receives this question often: ‘How will offering a retirement plan benefit me?'” We highlight the benefits of tax deductions for owners and point out the importance of retaining and recruit employees and help them save towards retirement.
When you determine the right retirement plan for your situation, it’s essential to define your objectives and circumstances.
“It all depends on what your age is. How many employees are you responsible for? How do you and your employees get paid? There are many options, and there are also minefields. But there are still great opportunities for both the owner and their employees if you are willing to take the time and explore them.
Many business owners are unsure if their company is large enough for this benefit.
“The two most frequently asked questions are: “Is it too small to offer/administer a 401(k) plan?” Craig Silverstein, Senior Strategy Manager for Retirement Services at Paychex, Inc. PAYX-0.7% Rochester, New York. itan administration to reduce the business owner’s responsibilities or administrators’ responsibilities. You can hire a 3(16) administrator or pooled employer plans (PEP).
These solutions offer many options, but the question of cost is always present.
Jackie Reeves from Bell Rock Capital Boca Raton, Florida, says, “A common question by small business owners-employees ist die Kosten. “The best way to make a 401(k) plan design that includes maximum company contributions is to add it to employee compensation packages. This type 401(k) plan design would not result in any significant expense increases for every new hire, but it would ensure the success of the entire team and its owners. Financially fit owners and employees are more productive over the long term.
#5 “What’s my exit plan?”
In the end, retirement planning is not about tax deferment. Instead, it is about the owner’s exit strategy. It is not enough to declare that “my business will be my retirement.” It would help if you integrated your business with your personal life. It should be the source of your comfortable retirement.
Nolan Baker is an Investment Advisor Representative for The Retirement Guys Formula. He says, “The most common question that I get from small business owners, is ‘How much can I save to feel comfortable in retirement.'” To answer this question, we recommend that a financial plan be developed that is flexible enough to meet the family’s needs and goals. You can then adjust the program to make changes such as retirement age, savings rates, and investment returns to create a plan to help you reach your goals. Planning software can stress-test the project for potential weaknesses and show how close the current or proposed plan is to the target.
This approach doesn’t diminish the value of your business. It has a price. It is possible to walk away from it. But wouldn’t it be more beneficial to realize its importance?
Julie Murphy, the owner of JMC Wealth Management, Inc., Chicago, said that business owners might be worried about “lacking a succession strategy…how to do it when no heirs/no one internally can want or can financially purchase it.” They can start talking them through various exit strategies, such as:
- Sell to competition, but find an industry evaluator.
- Create an intra stock plan, and if they don’t have one, create a board.
- Survey the company for potential senior managers to buy them out.
You may have asked the same questions before. This doesn’t necessarily mean that you should not ask them again. It is possible to discover a new answer.
Don’t wait to see if things change. Keep asking these questions. This is the most effective way to keep your business afloat.