The 6 L's of Small-Business Planning
By H. Adam Holt
Small-business owners pour their blood, sweat and tears into their enterprises, so it’s no wonder such dedication can cause a little tunnel vision. In being so focused on day-to-day operations, owners often fail to spend the appropriate time on personal planning. It creates a reality where those business owners under-insure and underinvest outside their own companies.
A successful business essentially becomes a security blanket, as owners don’t sufficiently plan for events that could change the course of their financial well-being. It’s incumbent on financial advisors to help them address the critical events that will disrupt everything personal and business. We run these fire drills (aka the six “L’s”), for all of our business owner clients annually by asking, “What’s the plan to deal with the following emergencies: liquidity, long-term disability, loss of life, long-term care, longevity and legacy/legal?”…