RISK MANAGEMENT- BUSINESS PLANNING

“Do you fully understand the importance of business planning and how you can benefit from it as a business owner?”

As a business owner or professional, you face many challenges—not just in the day-to-day management of your business, but also in ensuring its long-term viability. Most of us, however, spend more time managing the day-to-day than planning for the future.

A key component of the business planning process is risk assessment. A well-thought business plan can provide a cost-effective solution for many situations that could threaten a small business, such as the loss of an owner or a key employee. Here are some of the options you may want to consider as a business owner:

Key Person Protection

Concerns for Business Owners
1. How would your business response to:

  • Death of key person?
  • Key person diagnose with Critical Illness?
  • Total & permanent disability?
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2. How long can your business survive when the above events occur? 3. How would you meet your office overhead expenses if the key person is disabled or too sick to work?

Executive Retirement Planning

  • Many individuals have built up significant cash or liquid assets within their corporation but the tax cost of withdrawing those funds are often prohibitive, resulting in the corporation itself looking to purchase the investments directly.
  • How can you take advantage of tax efficient strategies using your business to support your retirement income?

Employee Benefit  & Group RRSP

  • The purpose of the benefits is to increase the economic security of employees
  • Employee benefits include additional health coverage that are not included in the provincial plan such as medical, prescription, vision, dental plans and dependent care.
  • Also, one of the corporate strategies today is to have Group RRSP contribution for employees. Protecting the employee and the company at the same time.

Business Continuation & Succession Planning

Concerns for Business Owners

  1. What kind of succession plan do you have for your business?
  2. Do you have any buy-sell agreement for your business with partners or potential successors? Is it up to date?
  3. Do you have a living will?
    • Business succession specialists often recommend an insured buy-sell agreement and financial planners to ensure the buy-sell agreement is well funded and to guarantee there will be money when the buy-sell event is triggered. Buy-sell agreement can be in the form of a cross-purchase plan or a repurchase plan. For greater neutrality and effectiveness of the buy-sell arrangement, the service of a corporate trustee is recommended.

If you have any concerns regarding the topics mentioned above, contact us now for a FREE and NO OBLIGATION consultation to evaluate your unique situation.