Written by Sometimes it helps to go back to some of the basics and review the stated goals, objectives and desired outcomes of Business Value Protection Planning (BVPP).
What are you protecting? BVPP focuses both on protecting the value of the business and the income generated by the business for the benefit of the owner(s).
What are the planning areas of BVPP? There are four interconnected planning areas. They are Succession, Retirement, Estate and Key Stakeholder Planning. When the work done in each area is coordinated with the others the planning is more effective.
How important is protecting the value of the business? Your business is often your largest asset when you add up everything you own. Very often it is more than 50% of your total net worth.
How important is protecting the income you receive from the business? Often the business generates the majority of income supporting the lifestyle of your family. This is of course not always the case because another family member may be earning significant income from another profession.
Who benefits from BVPP? You and your family gain the most from planning. There are many others who benefit as well. These include your business partners, employees, customers, suppliers and the community you serve.
Value and Protect – BVPP can increase the value of your business simply by reducing risk. Start with a valuation of your business then identify where you can protect its value and your income.