Ten Ways To Protect Your Business

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Ten Ways To Protect Your Business Presented by
Rick Wildes, CPA

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Business Plan

• Reflects your goals for the company
• Identifies steps necessary to accomplish them
• Plan describes
• Where you company is today
• Where you want it to be tomorrow
• How you plan to get it there

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Financial Aspects

• Getting started
• Financing sources include
• Angel Investors
• Venture Capital Firms
• Local Banks
• Small Business Administration
• Determine the loan schedule that best fits your
  needs

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Debt and Equity Financing

• Debit Financing loans must be repaid
• Commercial, savings banks
• Credit unions
• Equity Financing selling all or part of
• your business to others
• Capital firms
• Employee stock ownership plans
• Joint venture or licensing agreements

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Cash Flow Cash is King

• Effective cash management enables you to
  increase
• and invest your money
• Work with your CPA and review financial
  statements
• Simple ways to improve cash flow
• Bill customers at the time of transaction
• Offer discounts for early payments

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Annual Budget

• Create an annual budget and review it
• Budget allows you to
• Compare performance to projections
• Communicate your expectations

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Marketing

• Customer loyalty is key
• Promotional efforts to raise your visibility
• Customize advertising to niche markets
• Identify and respond to emerging trends
• Set up joint promotions
• Become involved in local business associations
• Give speeches in your community

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Legal Structure

• Sole proprietorship
• Partnership
• General
• Limited
• Limited liability company
• C or S corporation

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Legal Structure

• Sole proprietorship one-person business
• Do not need to file any papers to set up
• All business income and losses are reported on
• personal tax return
• Partnership owned by two or more people
• General responsible for operations and
• personally liable for debts
• Limited minimal control over decisions,
• but not responsible for debts

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Legal Structure

• Limited liability companies, or LLCs owners
  pay
• taxes on their share of the business income
• Corporation separate from people who own,
• control and manage it
• S corporation stockholders pay income taxes on
• business income on personal tax returns
• C Corporation company is taxed on business
• profits

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Managing Business Risk

• Types of Insurance
• Group, life and health
• Casualty and theft
• Disability
• Workmans compensation
• Key man
• Liability
• Automobile

• A CPA can appraise your business to assess risk

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Managing Your Workforce Effectively

• Determine the need for adding a position
• Follow federal and state hiring guidelines
• to avoid violating discrimination laws
• The job description is an important tool
• What is your responsibility as a business
  owner?
• Clearly communicate philosophy to employees
• Provide regular evaluations
• Carefully document legitimate reasons
• for termination

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Effectively Using Technology

• Is your technology serving the needs of your
• business and customers?
• Businesses can deduct new equipment purchases
• Government allows you to recoup depreciation
• deductions not taken from prior years
• May want to consider leasing equipment

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Succession Planning

• More than 70 of family-owned businesses
• DO NOT survive from founder to second
  generation
• Planning should begin 5 years prior to leaving
• Tax saving strategies are an integral part
• Life insurance is an important planning tool
• Create incentives to retain key employees
• CPAs can provide invaluable advice

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Fraud

• A number of ways to reduce the risk
• Conduct audits to uncover irregularities
• Separate your recordkeeping functions
• What should you do if you discover a
  discrepancy?
• Call your bank
• Check your credit report every six months
• Be sure you have virus protection on
• your computer

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Using Professional Advisors Effectively

• How can you find a CPA?
• Ask business associates, friends, state CPA
  society
• OR
• Wildes, Stevens, Brackens Company!
• Legal guidance may be necessary
• Screen before hiring
• Conduct an in-person interview
• Ask for written proposal outlining objectives
• Make sure fees and expenses are listed

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• Wildes, Stevens, Brackens Co.
• 812 Moorefield Park Drive, Suite 204 Richmond,
  VA 23236
• [phone]
• We can help with
• Operational Reviews
• Business Coaching
• Consulting and Planning
• Audits and Reviews
• Bookkeeping
• Contact our office today to setup an appointment!