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Starting or Selling A Business
Business owners have unique cash flow needs. Here
are some tips and strategies for business owners,
entrepreneurs and those who wish to sell their
business or otherwise enhance their cash flow
situation.
- Understand and Calculate
the Risks Associated with Your Financial
Decisions
- Everything in life
carries risk. The key is determining how to
calculate and minimize the risks associated
with your decisions. CMPS professionals help
you evaluate the cash flow and home equity
protection implications of various financial
or business planning decisions.
- Understand that Liquidity
is the Most Important Issue
- Liquidity is the
ability to quickly convert an investment or
business into cash, without losing any of
the principal that you've invested. For
example, a savings account is highly liquid.
In contrast, a business is considered to
have low liquidity because of the time it
takes to sell the business and the
unpredictability of the market value at the
time you are ready to sell. The greatest
business fortunes have been lost by those
who overextended themselves and didn't have
enough liquidity to weather the ups and
downs in the economy and business
environment. CMPS professionals help you
implement strategies to maintain high levels
of liquidity to be able to weather the
storms in the marketplace.
- CMPS professionals
also help you implement strategies to
maintain high levels of liquidity to:
- Take advantage of
profitable business opportunities that
present themselves. This will enable you
to quickly purchase other businesses or
assets at steep discounts that emerge
when other business owners fail to plan
properly for changes in the economic
cycle or business climate.
- Pass on your
business to your children or key
employees without requiring a large
upfront investment on their part. Having
a high level of liquidity and
implementing various cash flow
strategies can increase your available
options when selling your business or
otherwise determining an 'exit
strategy'.
- Don't settle for an
undesirable financial strategy or short-term fix
if you failed to plan properly for a career
change or downward swing in the economy or
business environment. CMPS professionals help
you implement a step-by-step plan for how to
re-establish your financial footing after going
through a rough time in your business. This may
involve:
- Financing in stages -
a refinancing or debt restructuring plan
that takes place over time.
- Sale/Leaseback or
Rent-to-Own strategy - a way to keep or
purchase a home or business real estate when
you can't qualify for traditional financing
options. The Sale/Leaseback strategy can
also be used to enhance your liquidity
situation and limit your legal liability
before a lawsuit or divorce if your business
owns commercial or industrial real estate.
- CMPS professionals bring a
team approach to your situation by working with
qualified CPAs, CFPs and attorneys.
Click below to download the free report that
illustrates some of the mortgage, cash flow and home
equity planning strategies to better help meet your
unique cash flow needs:
 How
to Safely Manage Home Equity
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