Solutions for Business Owners - Building a strong foundation
Owning your own business can be one of the most satisfying experiences of your life. You can follow your dream, earn a good living, provide employment opportunities for others, and maybe even make a difference in the world. But owning a business also entails a lot of responsibilities.
One of the first responsibilities you might want to consider is how to protect against events that may threaten the future of your business, beyond the basic property/casualty protection.
Controlling ownership
A buy-sell agreement is an agreement between owners that allows you or the business to buy out a co-owner’s share if that owner retires, becomes disabled or dies. You can enter into a buy–sell agreement with your co–owners at any time, but it often makes sense to do so shortly after the business is formed and when new owners are brought in. Life insurance is a way to fund the agreement that also makes sense.
Is your business a liability?
65% of business owners say their business would be a liability in the event of their disability, retirement or death.
– Small Business Focus Group Research Study
October 2014, Mutual of Omaha*
Protection Against a Disability
If you’re disabled and can’t work, business overhead insurance can help keep your business afloat by providing benefits that generally help cover expenses like employee salaries, taxes, employee benefits, rent, mortgage, utilities and equipment.
Tax deductions
Don’t forget to take advantage of tax deductions, which can help you have access to more capital you need to help grow your business. Things that business owners can claim as tax-deductible expenses include wages/compensation, office supplies, travel expenses, retirement and Social Security contributions, as well as some insurance premiums.
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Taking care of employees
You want your employees to be happy and productive. Are you doing the most you can to reward your key employees? And are the benefits you provide helping you keep and bring in new workers?
Preparing for the future
If the unexpected happens, who’s going to run your business? What if you want to retire or leave your business in 5, 10 or 20 years? By planning now, you can help make sure you and your family will receive the full value of your hard work.
A business valuation helps you know the true value of your business, which is critical to proper business planning. If you’d like a custom valuation for your business, a Mutual of Omaha agent will listen to your needs and concerns, and can provide a business valuation at no cost to you.
Business valuations can help you:
- Better understand your business and its potential
- Ensure that your business and your family are properly protected
- Plan for the future of your business
- Know the value of your largest asset to properly plan for your retirement
- Prepare for taxable events
- Prepare for selling your business
