Written by Business Owner Protection Planning is simply a manufacturing process where in the end there is a plan created for the benefit of the business owner. What goes into making a good plan? What are the raw materials used? Here are some raw materials to consider.
- Legal Documents – All plans have a legal document as a part of the end product. This is true in all four of the major business owner protection planning areas. The quality of the planning always is determined by the quality of the controlling document. These documents define what you the business owner wants.
- Financial Instruments – These can be lines of credit, outside investors and retirement plans all used to create and accumulate the funds to meet short and long term planning objectives.
- Insurance Products – Planning is made easier when insurance products are purchased to provide funds. These products are typically event driven and when the event can happen at an inopportune time. These products are more effective than most forms of self insurance because they do not tie up capital allowing it to be reinvested back into the company.
- Tax Strategies & Tax Products – Sometimes tax strategies and products are employed in the planning process because a significant bill is on the horizon or tax has the potential to be a problem.
Planning is easier when you know what raw materials you have to work with and where they fit in the planning process. They must be used in proper proportion to each other and coordinated to meet the desired objective.
As in a manufacturing process you need the right raw materials but only at a point just prior to the design part of the process.
Planning Process
Discover – Decide – Design