It used to be that people stayed at one company—one job—for their whole lives. Employers were benevolent, and almost part of the family; took care of families, once upon a time, offering health care coverage, life insurance, retirement packages… all this and an annual company picnic to boot!

As we all know, the world is a different place now. Very few people stay at one company longer than a decade, and not even that long if you’re under the age of 30. There is, however, one exception to this… if you’re self-employed.

As an estate planning firm, we meet with a good number of self-employed clients and small-business owners, and one of the most important things we can convey to these clients is how very, very important it is to have an effective estate plan. As S. du Plessis states in her article Estate Planning for the Self Employed: A Helpful Guide, “I am so responsible in other areas of my life, I feel compelled to be responsible about my death too. Plus, I hate to fail, and those who fail to plan. . . fail. So in fairness to my husband and children and because I own a business (which complicates my estate), it’s time to come up with an estate plan.”

Du Plessis is absolutely correct that failure to plan—especially for small business owners—can have disastrous consequences for both their families and their businesses. When you are so responsible in all other areas of your life, why let the ball drop in this one area? Especially when it’s your family who will end up suffering?

Small business owners spend so much of their time taking care of other people, we think it’s time that someone helped take care of them. Our office can help preserve the legacy you’ve worked so hard to build—for both your family and your business.

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Small business owners tend to be a smart, dynamic, and an especially opinionated lot. After years of running the show, you’ve gotten into the habit of doing things your way. And when the time comes to sell your business you want to do that your way as well. But is that even possible?

The answer to that is yes and no. It is the very act of doing things your way that has made your business as unique and successful as it is; you don’t want to change that now. Not to mention, you want to make sure that your interests are met when a deal is finally brokered. That being said, there are some things you can do—and people you can talk to—that will make the process of selling your business a lot quicker, a lot smoother, and a lot more lucrative.

This article from US News and World Report shares 10 Key Moves When Selling Your Business. Two of the ten moves mention getting the help of your accountant and the help of a professional broker. To this we would add getting the help of your attorney. Numbers 5 and 9 are going to be essential when it comes down to solidifying any deal, and our firm can help ensure that all of your legal and regulatory affairs are in order.

But what about the down market? Perhaps you’d like to sell but think it just isn’t an option while this financial fiasco is still going on. Not so. According to Loraine MacDonald in her article for Entrepreneur.com an economic downturn may in fact be a lucrative time to sell if, as she puts it, you have the right “three stars aligned” at the same time.

Whether you’re thinking about selling right now or much later, it’s never a bad idea to do the research and put your business affairs in order. As MacDonald mentions in her article, there are any number of unforeseen events that could end in the sale of your business at an unexpected time. The more prepared you are the best chance you have of getting the best buyer for your business at the best price—and of course, doing it your way.

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It takes a certain type of person to be a successful small business owner; someone resourceful, optimistic, and willing to work hard and take risks. People with these qualities aren’t going to feel daunted by a recession or slow economy. In fact, some will even look with relish upon the challenge it presents. One recent article in the New York Times, Betting Your Retirement on Your Startup, highlights exactly this resourcefulness.

Not about to let the panic on Wall Street slow them down, certain determined entrepreneurs have chosen to forgo investors and small business loans. Instead, they have taken the plunge on their own by investing their retirement savings in their own small business venture. “It’s a risky strategy,” writes author David S. Joachim, “one that has business owners essentially betting their retirement on their company.” But a willingness to take risks is exactly the quality that can make business owner a success.

Of course, a willingness to take risks should not translate into rash decision-making. A strong legal and investment background will be required to make this particular strategy, one that Joachim says is “so novel that many business analysts, tax experts, and even Internal Revenue Service officials said they had never heard of it” work for your company. In situations such as this, serious research and quality advisors can mean the difference between success and failure.

Our firm has worked hard to serve small business owners in the past, and we intend to continue helping our entrepreneurial friends far into the future, through times both lean and robust. Call our office for help moving your business in the right direction.

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Small business owners are some of the hardest working people I’ve ever met. They not only take their work and their clients seriously, they take them to heart . . . sometimes to their detriment. Yes, hard-working small business owners can take on too much. They give up family time and workout time; they lose sleep and lose perspective. All of this will not only take its toll on their health, it can be costly to their business as well. Like a trapeze artist working without a net, small business owners need balance–or else.

Recent studies have shown that two-thirds of small business owners (many of whom left big corporations to spend more time with their families) work more than 40 hours a week; with one in five actually putting in 80 hours a week! If you’re a small business owner reading this you probably have some experience with this yourself. How often have you read e-mails during dinner, taken phone calls from clients on weekends, or taken the family with you on a business trip to double up the time as “vacation”?

Why do small business owners find it so difficult to find balance? John Wyckoff believes it’s because too many of them spend all their time working “in” rather than “on” their business. CBS News posits that perhaps people have a hard time drawing the line between on-call and off-duty when both business and family happens in the same physical space. And the Entrepreneurial Connection thinks that small business owners would be much better off if they knew more about (or were willing to take advantage of) time-saving opportunities and devices.

Whatever your reason, finding a balance between work and pleasure is essential for small business owners. And as unlikely as it may seem, your attorney can help you find that balance. Whether by helping your business make that transition to the next level, by putting legal protections in place to keep your family finances safe from business lawsuits, by updating your business plan, or working with you on an eventual exit strategy. However you choose to do it, the best way to take care of your business is to take care of yourself. Start taking care of both today.

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Most of our small business clients probably already know that the federal minimum wage increased this week from $5.85 to $6.55 an hour. The increase is the second in a three-step process to bring the minimum wage to $7.25 an hour next year.

The increase will help workers deal with soaring energy and food costs, as described by Christopher Rugaber of the Associated Press, but many entrepreneurs are wondering if the increase will adversely affect their businesses. In fact, according to an article by Angus Loten in Inc.com (published last year when the increase was first approved by the House of Representatives), most small business owners will not be hit by the increase, because they already pay their employees more than the state or federal minimums.

There is a web of interconnectedness in small businesses that is more readily apparent than in large corporations, which means that small business owners often can’t help but see and react to the financial well-being of their employees. Loten, in his article, quotes Mark McCurry, the president of a small Atlanta-based delivery service as wondering “how you could pay anyone less than [the minimum wage] in good conscience?”

This seems to be the prevailing opinion of small business-owners across the country, who, according to Inc.com, generally pay employees more than minimum wage anyway, and 70% of whom reported that “raising the federal minimum wage would have little impact on their labor costs.”

Small business owners are struggling just as much as the next person with the current record inflation levels, but in an intimate work environment where the boss works side by side with employees, it’s difficult not to see how everyone is affected by the ups and downs of our recent economy. Perhaps it is for this very reason that these same small business owners are ahead of the minimum wage curve, providing for their employees and giving themselves some breathing room in the process.

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“Happiness is having a large, loving, caring, close-knit family . . . in another city.”
– George Burns

To those who start hyperventilating at the mere thought of a family reunion it’s almost inconceivable that there are some families who would choose—in addition to spending their leisure time together—to work together as well. But to a generation that has seen the trustworthy big businesses disappoint or betray their employees time and time again, the old adage “blood is thicker than water” doesn’t seem so outdated anymore.

In fact, family-owned businesses may be more pervasive than you think. Pervasive enough for Business Week Online to compile a Special Report focused exclusively on Family-Owned Businesses.

Family businesses are the oldest business in existence. Ever since pre-historic man first dragged a son with him to hunt for skins to trade to the neighbors, it has been an honored and respected tradition. Skills can be honed and passed from parent to child almost as naturally as breathing, and when your kids know they may end up caring for you in your old age they aren’t likely to skimp on the retirement benefits.

Family businesses are in a unique and enviable position because they straddle generations; and if they’re smart they have a hand in each one. The Business Week Online article Room to Grow gives some great examples of how to draw the younger generation into the business—and break into new markets in the process.

Of course, a family run business has its own unique challenges as well, first and foremost of which is succession planning. What is the best way to hand the business to the next generation? Is it something you should be thinking of yet? Business Week Online’s special report addresses this issue as well with their article A Transfer Tsunami for Family Biz.

In a world where large corporations are increasingly unreliable and unfriendly, family businesses are stepping into the spotlight. If done right, they can embody the best qualities of a close-knit family while letting advisors and receptivity help them avoid the worst. Alex Haley, the author of Roots, and a man who knew a little bit about family, said it best; “In every conceivable manner, the family is link to our past, bridge to our future.”

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How is your business doing this summer?

The warm months from June to August can be an excruciatingly slow period for some small businesses and their owners. They experience a slow summer slump while their client base goes off on vacation or relaxes at the beach. But rather than viewing this time with dread, why not look at the summer slump as an opportunity? This slow period can be a great time to delve into the inner workings of your business and make improvements, as this article by Colleen LeBaise on Smart Money’s Small Business site recommends.

Having just passed the second quarter milestone, summer is the perfect time for business owners to execute their midyear check-ups; reviewing performance and finances from the first half of the year and planning ahead for the next half. DeBaise’s article has further suggestions for turning these idle summer days into productive powerhouse moments, including networking with professionals and creating a disaster plan.

During this time when you are performing your reviews and making plans for the future is a perfect time to touch base with your estate planning attorney, who can help you plan not only for any possible natural disasters, but for legal, financial, and personnel disasters as well. And while you’re there, your estate planning attorney is a great person to ask about networking opportunities or to help you review your business plan.

Take advantage of these slow summer months to get done all those things you only have time to think about during the busy portion of the year. Before you know it business will be heating up as the weather cools down in fall, and then the holidays will be upon us. Give yourself a head start in these long dog days of summer.

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Business partners often end up with strong friendships, but is it possible for friends to succeed as business partners? It would seem to be a natural evolution; you know each other, you like each other, enjoy spending time together, work well together. But the transition from friends to partners may not be as easy as you think, according to this article by Kelly K. Spors in The Wall Street Journal.

One might very well wonder why not. What could possibly hinder two seemingly compatible people from successfully running a business? The fact of the matter is that the qualities that make a wonderful friendship don’t necessarily make for a wonderful partnership. The things we admire in our friends are often the things we lack in ourselves—the wild and irresponsible compliment to our sedate and rational selves (or vice versa). But bring that delightful and wild friend into a business partnership and who will end up shouldering the burden of responsibility?

Some partnerships fail not because the two partners are incompatible, but because they are so compatible that they take their knowledge of each other for granted and neglect to talk about key issues in the business. In such cases it is possible to know each other too well.

Does this mean that friends simply cannot become business partners? Not at all! With the right planning and preparation it is possible to have a successful partnership and a wonderful friendship.

What is the right planning? Kelly K. Spores mentions three things in particular. First, know yourself and your partner, even to the extent that you take personality tests and go on a business retreat together. Second, draft a detailed business plan and partnership agreement. This is where a third party (such as your trusted attorney) can be helpful. And third, have a good exit strategy. A good exit strategy can save your friendship even if your partnership doesn’t work out.

“Good fences make good neighbors”, wrote Robert Frost; and good plans make good partners.

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As mentioned in a previous blog post, this week is National Small Business week, a time to show our appreciation for the small businesses in our communities.  But at Forbush Legal Offices we don’t need an excuse; we show our appreciation for businesses all year round with our Business Sentry Program.

The Business Sentry Program was designed by our firm to support you as a business owner in all your legal needs, leaving your hands free to work on the things that matter most to you.  The Program is made up of five main components, the purpose of which is to keep your business protected—past, present, and future:

1. Legal Compliance
2. Comprehensive Documentation
3. Unlimited Access for Basic Legal Assistance
4. Education and Training
5. Savings on Additional Legal Services

With legal compliance Forbush Legal Offices will serve as your registered agent with the Colorado Secretary of State’s Office and file all the required reports and documentation, ensuring that your business adheres to all state compliance requirements, and remains in good standing with State authorities.

Comprehensive documentation means that our office will take the steps necessary to establish your business as a separate entity and give you the liability protection you need.

With unlimited access for basic legal assistance our firm will serve as your “General Legal Counsel”, providing you with unlimited telephone and e-mail consultation and reviewing any drafts of legal documents your business may use on a regular basis.

By providing education and training services, our firm helps your business look to the future.  Succession planning, retirement strategies, and tax strategies for business owners are only some of the seminars Forbush Legal Offices provides for our Business Sentry Program members.

And finally, offering discounts and savings on additional legal services is our way of saying thank you for your trust in our office and your business with our firm.

We know that as a business owner your time is precious, and taken up with growing your business in every way possible.  Your focus as the captain of your company ship will be much more clear and effective if you know that the smaller details are well-taken care of.  Join our Business Sentry Program, and let us give you that clear focus and peace of mind.

“The entrepreneur is our visionary, the creator in each of us. We’re born with that quality and it defines our lives as we respond to what we see, hear, feel, and experience. . . The entrepreneur in us sees opportunities everywhere we look. . . “ - Michael Gerber, founder and chairman of E-Myth Worldwide

The week of April 21-25, 2008 is National Small Business week, a week dedicated to recognizing the important role of America’s small business community. If you’re wondering just how important is the role of small businesses in the U.S. economy, take a look at these figures from the U.S. Small Business Administration, Office of Advocacy.

Small businesses:

• Represent 99.7 percent of all employer firms.
• Employ about half of all private sector employees.
• Pay more than 45 percent of total U.S. private payroll.
• Have generated 60 to 80 percent of net new jobs annually over the last decade.

These statistics are nothing to sniff at. Small businesses are what our country was built on, and even now serve as the backbone of our culture and economy. As such, small businesses must be nurtured and protected to the best of our ability. This includes taking steps to ensure a business can continue into the next generation with business succession planning, reducing the risk to a business-owner’s family and personal assets by forming an LLC or FLP, and keeping up to date with legal requirements and changes in state and federal tax codes. Your attorney can help with all of these.

If you are an entrepreneur or small business owner, the relationship with your attorney should be one of the closest relationships you have. In addition to answering your legal questions and providing asset protection, your attorney can also help you plan for the future, and update your business plan as your company grows.

This week our nation recognizes and honors small businesses. Give your own business the recognition and attention it deserves by protecting it and planning for the future.

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