Years ago, one of my successful business clients told me that their lesson from business was, “Keep it small and keep it all.”
They were a couple who worked together, with a few part-time employees. The bulk of the business was done by the couple. They had good steady income, built from that together and created a nice life for themselves.
They had the same rule in their personal life. They saved. They invested.
They’re retired now with an enviable lifestyle of travel and never stressing about money.
There is something to that. The biggest mistakes I’ve seen business owners make is growing their business without thinking. They don’t take into account the cash flow needed and infrastructure costs that come with growth. They get too busy and hire people, without documented systems or proper training. When something goes wrong and their untrained workers react differently than they would. That’s the moment of truth. Grow forward with planning? Grow forward the same way, just getting better with crisis management. Or shrink down and forget about employees.
Has this happened to you? There is something to be said about building something that is only you or your family. As long as you realize, you have created a job, not a business. Your best exit strategy from the business will be finding someone else who wants to buy a job. But, most likely (unless the business is cutting edge with new technology), you’ll only be able to sell the business assets.
If this is your plan, invest your money. This can be a great plan if you want to use your business to build real estate assets.
Or, you may decide to go ahead and build a business. That will take systems and an exit strategy.
Regardless of the path you choose, we can help with the tax and accounting. Contact Richard with any questions at 888-592-4769 or send him an email at Richard@ustaxaid.com