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