Important Questions Every Business Owner Should Ask Themselves

  1. Do you know exactly what you will do with your life after you exit your business? – A personal plan is the first leg of the stool.
  2. Do you have a wealth management plan that incorporates coordinated personal, investment, estate, tax and business strategies?  – A financial plan is the second leg of the stool.
  3. Do you have a written succession, exit or transition plan for your business? – A business plan is the third leg of the stool.

 

Other important business-related questions:

Do you have a contingency plan in place to protect against the 5 D’s: death, disability, divorce, distress or disagreement?

Do you know how much you will need when you exit your business?

Have you had a formal business evaluation completed within the past few years?

Do you have formal financial statements prepared by a CPA?

Do you have a strong management team in place?

Is your business seasonal or cyclical?

Is your industry growing?  Are your company sales and profits growing?

How much competition do you have?

Does your largest customer represent more than 10% of your total revenue?

 

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