December 1, 2016- ISSN# 1545-2646
Your Biggest Asset
Years ago when I purchased my first vehicle and had the pleasure of car payments I had my first tangible asset. Yes I had a few dollars in the bank and most likely had a bunch of stuff in my parents basement but nothing to truly define as an asset.
As time moved on, the assets in the portfolio expanded to include real estate, stocks, investments and other items which would contribute to the overall net worth.
One item that not all people get the opportunity to add to their portfolio is business ownership. Yes, they can own investment stock in a company and have a passive relationship to its success or failure but not a direct tangibility to the framework of the business.
For those reading this newsletter, some of you are directly business owners. Some of you are aspiring leaders pursuing business ownership. Some of you may not know where ownership fits into your future but want to respect the value it represents.
It is that value that you as the business leader/owner needs to give considerable thought to as you and your business mature in age and stature.
For many owners, the business started early on and the emotional relationship with it is like that of a first born child. That relationship to the business grew up even before the family may have come into existence. For these reasons the asset of the business and the planned separation during perpetuation is not a casual nor quick event.
I bring this up because as we transition the coming of a new year, many more senior business owners need to begin the development of their perpetuation plan.
This process for many is hard to get started as it is admitting to the beginning of the end of this relationship with the business. It can sometimes feel like planning your funeral before you pass away. For these reasons, the path to an enjoyable and successful perpetuation of your business as your biggest asset deserves time, appropriate energy and the support of a navigational guide to assist in the process.
This week whether you are 12 months or 5 years away from needing the plan for your biggest asset, start to formulate your circle of trusted advisors to assist you with your plan. It needs representation from finance people, legal people, business advocates, potentially members of the business and if family owned then the right people from the family. There will be others that will need to be brought in to provide specialized data such as business valuation specialists, real estate specialist, etc. It is also vitally important to have a member of the team there to help navigate the emotional dynamics of the perpetuation process. You need a leader of the TAC – Trusted Advisor Counsel to be the overall coordinator of the members of the team so the best results can be achieved.
Looking for your navigational guide to perpetuation? Call JKL Associates (313) 527-7945 to get the ball rolling.
Questions or comments – email us at partners@jklassociates.com or call our Office at (313) 527-7945
Copyright – JKL Associates 2016
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JKL Associates
18530 Mack Ave #242
Grosse Pointe Farms MI 48236
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