Is Your Business Getting the Respect it Deserves?

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Is Your Business Getting the Respect it Deserves?

Your business is your largest asset.

It has the single most impact on:

  • How you live
  • How you retire
  • How much fun you can afford
  • What kind of home you live in
  • How you educate your children
  • What kind of medical care you receive

In other words, it is a pretty big deal.

Are you treating it like the big deal it is?  Here is what I mean by that.  As a business owner it is easy to spend day after day focused on all the things that must go right every day. Sales, people, cash flow, marketing, customer happiness or lack thereof, next quarter’s earnings, etc.

All those things are really important.  However, Big deals need big plansThey deserve some quiet time for reflection and direction. 

Reflection, as in:

  • What is your end game with your business?
  • What is your “all in” investment, adding together, opportunity wages forgone, cash in, earnings reinvested?
  • What is the current market value of your business? Is it more or less than your “all in” investment?
  • What drives value in your industry? Is it recurring sales, margin, EBITA or something else?
  • What is a fair rate of return for your investment using the higher of your “all in” investment or the current market value and relative to the risk you take each day?
  • Are your current earnings more or less than a reasonable rate of return?
  • What is your wealth purpose for your business? Here are four possibilities to start with.
    • Is your business a lifestyle business? You just want to work and play on your own schedule? Just close the door when you are done and walk away? How does this fit into your personal financial plan?
    • Is your business a grow and sell to the highest bidder business? If so, things to consider include your timing, who the highest bidders are likely to be and what they want.  How does this fit into your personal financial plan?
    • Is your business a grow and sell internally business? Internally to family or to key employees?  How will the business cash flow the transition?  How are you developing the next generation to take over leadership and management?  Are you going to be their creditor?  How does this fit into your personal financial plan?
    • Is your business a grow and create a family legacy business? How will the family ownership be structured?  Who will be on the Board and how will that be determined? Will family be employed by the business and on what criteria?  Who will decide if or when to sell the business?  And will those proceeds be invested in a new family business or publicly traded assets?  How will the business value and cash flow grow to provide for growth in the family?  How does this fit into your personal financial plan?
    • Or something else?

Direction, as in:

  • Are you focused on the right decisions and do you have the right metrics and outcomes defined each day/week/month to achieve your end game?
  • Are you focused on the right decisions and do you have the right metrics to track progress toward a fair rate of return relative to your risk and investment?
  • Do you know how and when to course correct?
  • Do you have the right kind of financial expertise on your team or a quality outsource provider to guide you?
  • Are you focused on the right decisions and do you have the right metrics to track progress toward your wealth purpose?
  • Are your business financial plans and your personal financial plan in alignment? If not, what needs to shift? Do you have the right kind of financial expertise to guide you?  Are your business and personal advisors on the same team and reading from the same playbook?

I know you are busy.  I know these questions seem overwhelming.  Likely, you have heard the saying, “When eating an elephant, eat one bite at a time.”  All big deals at the end of the day are small tasks and plans tied together with purpose.  Be sure your small tasks are purpose driven and tied together in a way that takes care of you and your family.

At Mackey Advisors, we are passionate about helping business owners be more prosperous. If we can help you achieve your prosperity goals, please call us,   859-331-7755.  We’d love to help.  Thanks for reading!

Go prosper,

Mackey

About the Author:

Author, speaker and fearless leader of the Prosperity People, Mackey McNeill is a passionate entrepreneur dedicated to creating prosperity in the lives of her clients and within her community. She has merged over 30 years of expertise as a CPA and Personal Financial Specialist with her knowledge of internal alignment to create The Prosperity Experience: a planning program rooted in self discovery and financial self actualization. A sought after thought leader on the subjects of money and intention, Mackey has been quoted in The Wall Street Journal, The New York Times, TIME, Money, USA TODAY, Mint.com and Reader’s Digest, along with many other publications.

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