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BusinessTools ENTREPRENUERISM
Top of Mind
Don’t let day-to-day operations distract you from planning for the future.
By Josh Longnecker
planning. Providing health care and additional benefits to employees is a key way to attract and retain talent. Keeping employees engaged while offering an attractive company culture is a big priority. For most valuable employees — those you cannot imagine your business without — special benefits and unique rewards can demonstrate your appreciation for them, and their important role in the company’s success. A nonqualified benefit plan allows you to offer attractive supplemental benefits only to the employees you select. Millennials witnessed the financial crisis and the disruption that volatility can cause. They want a plan. As a business owner, you’re in the unique position to offer them one. Make it one you’re proud of.
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orkdays can feel like a whirlwind of emails, meetings and calls. So believe me when I say that, as a business owner, I understand the difficulty of planning for tomorrow when you’re busy tackling today. As the St. Cloud and U.S. economy continue to gain
steam, business owners have a lot to be thankful for, and plenty more to prepare for. Here are three issues that are top of mind for my businessowner clients. Engaging employees Many St. Cloud business owners want to discuss benefits
Transitioning well St. Cloud is home to many multigenerational family-run small businesses. Passing on a business – and creating an exit strategy for yourself – requires careful, custom planning. For example, one St. Cloud area client of mine is a father of four. His children and business are his legacy – a legacy he’s tremendously proud of. He’s built a small company into a successful multi-million dollar organization – and now retirement is on his horizon.
Interestingly, two of his children want to run the business; the other two do not. For him, it was important to build a plan that fairly passed his business and other assets to his children. He even shared the plan – which clearly depicts how each child will be treated – with his kids to give them clarity. Whether it’s a few years from now or decades away, you will leave your business someday. To ensure that it passes successfully to its next owner, it’s important to begin succession planning now. Funding retirement The livelihood of many small business owners is tied directly to their companies – but some owners struggle to understand how to create a steady income stream in retirement. After all, passing a business on to a child doesn’t generate any cash for a retiree. I meet with many business owners who want to understand their options to fund retirement. Transitioning emotionally and financially into retirement can be exciting and challenging. There’s a lot to think about. It’s important for business owners to work with a financial expert to build a comprehensive financial plan to help them build and protect their wealth today – and carefully distribute it during retirement.
contributor Josh Longnecker is a managing director with Northwestern Mutual in St. Cloud. Contact him at (320) 223-6639. Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company (NM), Milwaukee, WI and its subsidiaries.
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