If you think you will just sell your business and retire, think again. Very few roofing businesses will end in a sale or transfer to the next generation. Most will just close their doors. Join us to hear how, with careful planning, you can avoid the dreaded 4 D’s that kill so many businesses.
What you’ll hear in this episode:
- Setting up corporate structure: why you should avoid sole proprietorship structure
- Why your personal money MUST be separate from the company’s money
- Scott’s tips to avoid “losing the corporate veil”
- The Four D’s that can kill your business, and how to avoid them (or at least minimize the damage):
- Dissolution—Have policies (like a “Shoot-out Provision”) in place to protect a 50/50 partnership
- Divorce—Have a written agreement to give notice of a buyout opportunity in case of a divorce
- Death—Have an agreed valuation every year, have life insurance in place, and have a plan in the event of the owner’s death or retirement
- Disability—Have disability insurance, talk about the possibility, and put your plan down on paper. Plan ahead!
- Plan ahead for the 2nd generation of your business and think about your business 10 years from now.
- “What we’re discussing are ways to protect and preserve the business from potential issues that you can avoid if you simply take the direct and up-front approach of doing proper planning, considering the issues, and putting measures in place.”
Website: HPSS Law Check out the retainer program offered by Scott’s firm!
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