Business Planning Law - Frequently Asked Questions
Q: Why is Planning So Essential for a Small Business Owner?
- Lack of guaranteed income
- Personal finances have often been committed to the business operations and may strain or weaken a family’s security
- Without a firewall between the small business and personal assets, a family can be placed at great risk when a lawsuit or debt against the business is attached to the family’s assets
Q: Why Don’t Small Business Owners Take Steps to Protect Themselves?
- Many small business owners believe that they can’t afford to hire an attorney, CPA, or financial planner
- There is an overwhelming amount of information to digest
- It takes time to gather the information that is necessary to develop a comprehensive plan
- They are independently wealthy and their business is just a hobby
Q: What Are Some of the Complex Issues that Small Business Owners Should Consider?
- Whether a trademark or copyright is needed
- Whether their idea has already been trademarked or copyrighted by someone else
- What can be said, written, tweeted, or shown in social media
- Does the person with the idea want (or need) a partner or investor
- How will information be disseminated on a website or in a brochure
- How much to charge for a product or service and what type of payments will be accepted
- What are the tax implications and when are taxes due
- How to hire your first employee
- Whether or not to use independent contractors
- Paying suppliers
- Entering into contracts
- What happens to the business if the primary person running things gets hurt
Q: Planning for Success!
- What are your goals? Are they in writing?
- How much do you want your business to be worth after five years?
- Would you consider selling your business? At what point?
- Can anyone in your family take over the business?
- If you have partners or investors, can you sell to them or can you buy out their share?
- Do you have the proper insurance products in place: disability insurance, life insurance, health insurance?
Q: What is Included in a Business Formation and Protection Plan?
- Personal Estate Plan to protect the most important priority in your life: YOUR FAMILY!
- Keeping your personal assets protected from business liabilities
- Employment issues
- Employee Handbook and Policies and Procedures Manual
- Insurance assessment: using insurance as a tool in your business
- Disaster Management Plan
- Family-owned business plan
- Business succession plan