The business space is constantly getting competitive. There is a tug of war between competitors. Consumers are more educated and aware, resources are becoming scarce, and the talent pool is harder to retain. Overall, the environment is chaotic. Between this noise is you…The business owner with a dream to grow and flourish the family business and turn it into a multigenerational legacy.
As business owners, are we equipped to do so? How can we become the leading figures in the competitive space? Tune in to Your Business, Your Life podcast, where Matt DiFrancesco joins industry specialists who reflect upon the current practices, success strategies, and all kinds of plans you need to have in place to turn your vision into reality.
Since we are in the middle of the third quarter and some business owners begin the planning for next year around this phase, it is necessary to talk about the three different areas that must be a part of your plans.
Matt discusses these plans, along with the problems most collision shop owners are facing today. In addition, he reflects upon what business owners can do to address deficiencies in their cash flow and different strategies for mitigating taxes.
It is always a good idea to begin thinking about how you are going to transition the business when you are planning to grow. If you are thinking about preparing a succession plan or transitioning the business and require the relevant knowledge, then Schedule a free 20-minute conversation with Matt DiFrancesco today.
Building An Emergency Fund
The first area that is a big problem is the idea of cash flow and the inability to get parts. We can’t control the suppliers, things being backlogged on docks, or truckers being unable to get stuff out. So it’s becoming a challenge to get parts, and for the collision shop owner, it’s causing a lot of stress. Due to all of these issues, the customers are not getting their cars back in a timely manner.
The above scenario can be avoided and mitigated from a cash flow perspective. You can take a basic personal finance principle. In simple words, it’s just putting away the first 10% that you make and keep it in an emergency fund. High Lift Financial did this with a lot of clients, especially during COVID. That’s because businesses were shut down in the collision space.
This strategy helped the business owners to stem some of their cash flow problems during the pandemic. As the emergency fund builds up, it will help address times when we can’t get parts or when our cash flow seems to lag behind.
Mitigating Taxes
The second area or question that we need to answer is “how will we mitigate taxes?”. The reason it’s important is so we’re not paying more than we need to. There are a lot of different strategies to do this. These include revamping, restructuring, or forming a retirement plan.
Make sure that you are well aware of your tax situation. Any hasty or uninformed decision can harm the entire business planning. High Lift Financial has a team of specialists that can guide you at every step of the business phase.
Transitioning The Business
The third crucial part of your yearly planning is to decide how you are going to transition the business. Again, it’s critical that you come up with a step-by-step plan to make sure the business is transitioned in the way you want without sacrificing money.
The business transition plan is even more important for business owners who don’t have kids or have kids who are uninterested in running the business. In addition, there can also be a situation where there aren’t any employees that can handle the business.
In these cases, you will have a range of options that you must know about and prepare for in advance. By staying mindful and having the right information, you will be able to maximize what you get out of the business.
Young Business Owners
For younger owners, it’s a good idea to start thinking about, “what do we want? Do we want to create a family legacy with this business? Is this business one of the vehicles to do that?”
The answers to these questions will help you form a path that you can take to reach your aim.
How Can High Lift Financial Help?
We can help business owners create a vision for their families in many ways. The next step will be to create a solid achievable plan and then help create a roadmap to accomplish that vision.
Since the team is well-aware of the industry and the current business environment, it will provide solutions and a path that addresses and includes all the risks and uncertainties. Plus, we also take into account life events such as divorces, death, and disability.
We have access to operational people that can help you to function more properly as a business to help raise its value. In addition, we also consider the outside events, whether it’s eldercare, long-term care, or college planning. So, if you’re looking at having your kids go to college, there are some advanced strategies to go about it. Check out all of our services on our website.
Contact High Lift Financial Today!
Every new year presents different kinds of challenges. But if you have a proper mindset and a well-thought-out plan, you will be ready to face these challenges head-on. If you need help navigating through the financial trials in your life, feel free to Schedule a free 20-minute conversation with Matt DiFrancesco today!
Know What Industry Specialists Have To Say!
High Lift Financial constantly engages with industry specialists who discuss current practices, trends, and strategies that can help grow a business. Here are some articles that you might be interested in reading:
- Are Independent Collision Shops Equipped to Face the Future? – with Jake Rodenroth
- Dealing with Mental Health in the Family Business with Michelle E. Dickinson
- Advanced Business Planning Strategies with Kate Seastone
- Female Business Leadership with Amy Bradley, Beth Walker, and Britt Schroeder
- How to Build a Sellable Asset with Michelle Seiler Tucker
Disclaimer
The information compiled and posted here solely represents the opinions and views of the guest. It might not be similar to the opinions and views of High Lift Financial. It is not a substitute for tax or legal advice or professional investment.
Always consult your financial advisor with any personal or business planning queries. DiFrancesco Financial Concierge, LLC. d/b/a High Lift Financial is a Registered Investment Advisor registered with the State of Pennsylvania and subject to the State of Pennsylvania’s regulatory oversight.