Business owners are used to having control. But some things are uncontrollable, and without a plan, those uncontrollable things can create negative consequences that reverberate.
Consider the story of a fictional but representative business owner who learned why planning before he thought he was ready was so important.
A Stroke of Luck
Jerry Glasner’s employees fidgeted uncomfortably. His words about the company’s award-winning performance, which he had been delivering with his trademark booming confidence, began to slip from his mouth like an undercooked egg. Jerry saw the befuddled looks and was confused. The last thing he remembered was his wife cradling his head and his daughter pleading for a doctor as he lay on the floor of the banquet hall that his company had rented for such a joyous announcement of his company’s success.
He awoke in the hospital. He had suffered a stroke. His prognosis was good, but his doctors said he would require speech therapy.
Jerry’s health scare made him realize how many people both relied on and cared about him. Though he would have never wished for such a terrifying experience to learn a lesson again, he did consider himself lucky. He was not only alive but also motivated to protect the family and employees he’d supported for the last 30 years.
With help from his Advisory Team, he created a set of contingency plans.
These plans gave his family financial guidance and access to the wealth he had built outside his business if he were to die suddenly.
The plans identified a line of successors that would allow his business to continue to operate in his absence, while providing for his family and employees.
Additionally, a portion of company profits were set aside to install wellness programs for his company’s employees to help prevent similar health scares in the future.
Starting Before You’re Ready
To implement these plans, Jerry needed to adjust how his business operated. He discovered that while he loved being the engine that drove the business, he wasn’t comfortable with the idea that an unexpected health problem could quickly cause the wheels to fall off of everything he had built.
Many business owners find themselves in a similar situation as Jerry. You do so much and work so hard. But when all success radiates from one source, removing that source can mean removing any chance of success.
Fortunately, there are ways to plan for the unexpected. Between business continuity planning, estate planning, and planning for a successful future, business owners have options.
However, the best time to begin such planning is before you think you’re ready.
For example, while it was good that Jerry took steps to plan following his stroke, he missed out on a chance to take fuller advantage of life insurance policies due to his now-evident health issues.
The good news is that as long as you’re running your business, it’s never too late to plan for a successful future.
We strive to help business owners identify and prioritize their objectives with respect to their businesses, their employees, and their families. If you have questions on this topic, we can help with more information or a referral to another experienced professional. Please feel free to contact us at your convenience.
Imagine a world where your financial advisor, attorney, accountant, insurance specialist, and property/casualty advisor all worked together, like a board of directors on your behalf. This is the type of Collaborative Advisory Team approach we take in our practice. For many driven entrepreneurs, executives, and high-net-worth individuals, a Collaborative Advisory Team of professionals is the most effective and efficient way to achieve your optimal financial world. At Moneta, we’re reinventing the way you experience wealth management.
The information contained in this article is general in nature and is not legal, tax or financial advice. For information regarding your particular situation, contact an attorney or a tax or financial professional. The information in this newsletter is provided with the understanding that it does not render legal, accounting, tax or financial advice. In specific cases, clients should consult their legal, accounting, tax or financial professional. This article is not intended to give advice or to represent our firm as being qualified to give advice in all areas of professional services. Exit Planning is a discipline that typically requires the collaboration of multiple professional advisors. To the extent that our firm does not have the expertise required on a particular matter, we will always work closely with you to help you gain access to the resources and professional advice that you need.
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Any examples provided are hypothetical and for illustrative purposes only. Examples include fictitious names and do not represent any particular person or entity.
© 2023 Advisory services offered by Moneta Group Investment Advisors, LLC, 100 South Brentwood Blvd., St. Louis, MO 63105 (“MGIA”), an investment adviser registered with the Securities and Exchange Commission (“SEC”). MGIA is a wholly owned subsidiary of Moneta Group, LLC. Registration as an investment advisor does not imply a certain level of skill or training. The information contained herein is for informational purposes only, is not intended to be comprehensive or exclusive, and is based on materials deemed reliable, but the accuracy of which has not been verified. Examples contained herein are for illustrative purposes only based on generic assumptions. Given the dynamic nature of the subject matter and the environment in which this communication was written, the information contained herein is subject to change. This is not an offer to sell or buy securities, nor does it represent any specific recommendation. You should consult with an appropriately credentialed professional before making any financial, investment, tax, or legal decision. Past performance is not indicative of future returns. You cannot invest directly in an index. All investments are subject to a risk of loss. Diversification and strategic asset allocation do not assure profit or protect against loss in declining markets. These materials do not take into consideration your personal circumstances, financial or otherwise. Trademarks and copyrights of materials linked herein are the property of their respective owners.
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