Small business succession planning incorporates numerous elements. A business requires careful planning in terms of products, services, marketing, employees, day-to-day-operations, necessary expenses and more. However, many companies fail to protect their most important asset: their people. These companies also estimate the amount of money they will need to keep their business operating smoothly, particularly in the early stages.
A growing business needs valuable people and money to keep making money for years to come. As a business owner, you may be overwhelmed as it is. You may come across various options for business protection, but there are two main ways you can protect your small business: purchase insurance and increase cash flow.
Purchase Insurance
With the right insurance, you can plan for the unexpected. Insurance can give you peace of mind should a partner or other key employee die or become disabled.
Life insurance is a helpful tool for small businesses that relies on the expertise of a couple key players. With life insurance, those impacted by a person’s death will receive monetary benefits. This means not only the company, but employees and family members as well. This money can help pay debts and keep the business running.
Similar to this is key person insurance. This plan keeps your business up and running even if a partner or key employee suddenly dies or becomes disabled. The benefits from this plan will allow you to hire a replacement, pay off debts, maintain strong financial health and keep your business operating smoothly.
With buy-sell insurance, you receive a cash payment that allows you to easily buy out a key employee’s share of the business should they die or become disabled. The policy can be owned by each person or the company as a whole.
Contact us today to find an insurance designed especially for your company’s needs.
Increase Cash Flow
Getting the money you need to sustain your business can be challenging. Banks are not very willing to lend to small businesses and friends and family members do not always have the capital you need. As a result, entrepreneurs often end up with significant debt. That’s why knowing how to create your own cash flow can be key to growing your business.
A good way to increase the amount of cash your business has is to eliminate debt. With a solid plan in place, you can get rid of debt quickly and easily. You can spend money more efficiently and turn debt into assets. You can also manage your money more effectively and reduce taxes. Contact us today to learn more about this plan.
Contact Us Today
Creating a business can be exciting but scary. There is a lot of risk involved, so it is important to protect yourself. A disability or sudden death can happen to anyone, at any time. Boston Cash Flow Financial can help you reach your goals and protect your business for years to come. We offer insurance plans and many other strategies to give you peace of mind and help your business succeed. Contact Boston Cash Flow Financial to learn more.
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