… Why Should you care?
You invested, probably heavily, in your American Dream; and you have a lot riding on it.
Before you can cash-in on what you’ve built, you’ll have to quantify what you’ve accomplished. That’s when you’ll be able to explore your options, choose your path, and make the moves that matter.
Years ago, when I was in the publishing business, it was before the internet era; in fact, it was even before 5-1/4-inch floppy-disk computers with A and B drives, I would have loved to not only know what my business was worth on a constant basis, but to know how each decision I was making was acutally impacting business value. Today, business owners don’t have to fly blind, unless they want to.
Business owners do make decisions every day – indeed, many have their entire net worth invested in the decisions they make – yet, few know, in advance, just how those decisions will impact business value.
According to the Small Business Administration, insufficient knowledge about business value is one of the top two challenges facing small business owners and leaders. That’s because companies that DO understand their worth are better positioned to pursue growth initiatives, attract and reward talent, and ensure proper credit and risk management.
Whether you are a sole owner, in a partnership, or part of a corporate executive team with equity in the enterprise, knowing business value can help you when you:
- Seek debt or equity financing
- Pursue new business & expansion initiatives
- Apply for a business loan
- Make a business acquisition
- Value a buy-sell agreement
- Prove you’re a reliable supplier
- Assess how you should value your business for estate planning purposes
- Determine how much insurance you need to protect your family & assets
- Gauge whether another company is a good strategic partner
- Need to know how business decisions actually impact business value
- Want to quantify business value for the sale of the business or your equity interest
Knowing your business’ value represents the “on-ramp” to almost everything you need to do to accomplish a variety of objectives. It helps business owners answer the most important question they face before engaging in any financial decision-making conversation:
It’s about insight: Knowing where you stand and where you may be headed.
Arrange a brief 15-minute introductory phone call with Jim Lorenzen, CFP®, AIF® here.
Social Security – The wrong claiming strategy could conceivably cost hundreds of thousands of dollars! Knowledge is more than power; it’s real money. You can learn how to get to the right strategy with the right planning.
College Planning and Funding Strategies – Just like with the airlines, there are often two prices people pay for the same education: The price paid by the informed and the price paid by the uninformed. What are the projected four-year costs for the college your student desires? How much scholarship money will your student qualify for? You can see a short video, “A Lesson in Paying for College”, and download a free report, “Insider Strategies and Secrets to Reducing your College Costs.” You can learn more on the IFG College Funding site.
Financial Planning and Investing:
IFG Report: Understanding Mutual Funds
IFG Report: The Hidden Risk No One Talks About (Registration required)
Begin the discussion with your spouse with this Financial Converstion Checklist. (No registration required)
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Jim Lorenzen is a CERTIFIED FINANCIAL PLANNER® professional and An Accredited Investment Fiduciary® in his 21st year of private practice.
The Independent Financial Group is a fee-only registered investment advisor with clients located across the U.S. He is also licensed for insurance as an independent agent under California license 0C00742. Jim can be reached at 805.265.5416 or (from outside California) at 800.257.6659.
Interested in becoming an IFG client? Why play phone-tag? You can easily schedule your 15-minute introductory phone call!
The Independent Financial Group does not provide legal or tax advice and nothing contained herein should be construed as securities or investment advice, nor an opinion regarding the appropriateness of any investment to the individual reader. The general information provided should not be acted upon without obtaining specific legal, tax, and investment advice from an appropriate licensed professional.