Develop a business strategy that preserves your business and your net worth
March 30, 2006 - by Scott Orts, Citizens State Bank

A business without a written plan and defined vision is like a ship with no sail. Your business plan should provide details on:

Your business plan should define specific challenges, including any tax and legal ramifications of your financial strategies.

When applying for business financing, a commercial lender will need to review your business plan, financial information on your business, business projections, and plans for continuation of the business.

To retain employees who are critical to your success and to plan for the continuation of your business, you may want to consider these planning tools:

Buy-Sell Agreements: A common business planning tool, life insurance funds the agreement, which establishes the value of your business and identifies the beneficiary of your share of the business after you're gone.
Key Employee Life Insurance: Provides you with the funds you need to keep your business running smoothly when you lose a key employee.
o Personal estate planning: Your estate plan should incorporate your business needs to help you meet estate tax and liquidity needs for your family and associates.
Qualified pension and profit-sharing plans: Employer-sponsored retirement programs help employees prepare for retirement and allow them to take advantage of special tax breaks. Any contributions you make to the plan (Simple IRA, 401k, etc.) are tax deductible.
Group insurance: Medical, disability and life insurance are popular benefits. The new Health Savings Accounts (HSAs) provide employers a means to provide affordable health insurance, while saving on current and future medical expenses. Tax deductions generated by the premiums can lower the cost of these benefits for employers.

Your banker can inform you of the parameters needed in your business plan for lending purposes. They can also put you in touch with their staff financial advisor who can help you prepare a thorough business plan, provide valuable and cost-effective employee benefits, and address the continuation of your business for you and your family.

Citizens State Bank, a locally owned and operated community bank, was established in New Baltimore MI in 1922. Citizens State Bank specializes in serving small to medium-sized business owners in Macomb and St. Clair counties. To set a FREE No Obligation appointment to analyze your current merchant service program or to learn more about merchant services, contact Scott Orts at Citizens State Bank at 586.468.7500. Learn more about Citizens State Bank’s other products and services at www.mycommunitybank.com.