Business Owner Solutions
Ken Greig - Apr 05, 2022
Many business owners I meet tell me that they have the same problems. The most common ones that I hear are:
“I can’t find good employees,” or
“I can’t seem to keep the good employees.”
“My group benefit premiums are costing me too much.”
“ I know I need to protect the business, but I need the
money to reinvest in my company.”
“ I know I should be buying disability or critical illness protection, but I don’t understand how it works for my company.”
“ What’s the best thing to do with the retained earning
I have in my operating company?”
Business owners also tell me they’re very busy running their businesses on a day-to-day basis and are unaware of what the financial consequences are if they suddenly are not there or cannot work. They don’t know the effect on their families. It is not that they don’t care, it is just they’re not focused on anything other than the success of their business.
My approach to these situations is to look at their circumstances and complete an analysis. I can then identify the exact problems that are of the most concern and make solution-based recommendations. These recommendations may involve different products and services, some of which I can supply and others for which I may recommend other professional advisors like their lawyer or accountant. The business owner can then make an informed decision as to when and how to implement those recommendations.
Below are a list of common problems and some of the possible solutions that can be applied
Employee
attraction/retention
•
New group employee plan
•
Key person protection plan
•
Group RRSP plan
•
Profit sharing plan
Group benefit plan
premium reduction
•
Reduce some benefits/add co-insurance factor
•
Educate employees with lunch & learns
•
Quarterly claims reviews
Life insurance need but
cash is reinvested
•
Immediate finance agreement
Buy/sell agreement with
no funding method
•
Criss-cross life insurance purchase
•
Shareholder redemption strategy
Retained earnings in
operating company
•
Corporate life insurance
•
Strategy to defer tax on earnings
•
Use of holding company
Need for living
benefits protection
•
Disability plan - corporately or personally owned
•
Disability buy-out strategy
•
Critical illness protection – corporately or personally
owned split-dollar plan
Exit plan for business
•
Succession planning for sale
•
Estate freeze
•
Key person sale strategy
•
Holding company setup
These and many other problems a business owner may have can be solved by a comprehensive analysis and the application
of the appropriate solution for that set of circumstances. For a complete, no-obligation review, please call me at 250-668-8699
The information provided is general in nature, and should not be relied upon as a substitute for advice in any specific situation.
For specific situations, advice should be obtained from the appropriate legal, accounting, tax or other professional advisors.