Honolulu (KHON2) – The Family Business Forum invites local entrepreneurs to learn what it takes to have a successful company in 2024.
The Family Business Forum is happening on November 8th. Troy Wada from Inpac Wealth Solutions is a key speaker at that event who will be sharing tips to help family owned businesses.
“These self-employed people tend to come with their own set of challenges and opportunities. As a result, when we work with our business owner clients there are 8 things we focus on when evaluating their situation,” says Troy Wada, Principal Wealth Advisor of INPAC Wealth Solutions.
According to Wada, there are 8 tips business owners should consider when starting a
1. Making sure our business owner has the right team in place. Most business owners will need a Tax Preparer, Bookkeeper, Human Resources, Estate Planning, Financial Professional, and as you know sometimes a Real Estate professional – just to name a few.
2. Understanding the Qualified Business Income Deduction of QBI. As a result of the Tax Cuts and Jobs Act of 2017, the QBI deduction was designed to provide a more equal footing for “small” businesses and if you qualify can be an amazing tax break.
3. goes along the same lines as #2 and that is understanding your government benefits. Since COVID, there are several unique opportunities to minimize taxes and maximize their government benefits. Things like SBA Economic Injury Disaster Loans or SBA 7(a) loans are just a few of the many programs available for business owners.
4. Evaluate to see if our business owner can hire their children. This can provide some needed tax benefits for the business owner, but also allows their children to understand the value of work, earning a paycheck, and the importance of saving and investing by contributing to a retirement plan.
5. Like we talked about last time – choosing the right retirement plan for your business is so important.
6. Ensuring they have adequate liquidity and emergency funds. Even when business is booming, it is critical that most businesses maintain liquidity for a rainy day, like a market downturn. In some cases, a sunny day is like a potential acquisition.
7. Is somewhat tied to having liquidity and emergency funds and that is making sure business owners are managing cash flow and debt. Looking for things like negative write-offs, separating business and personal expenses, paying down loans, are just some of the things business owners need to consider.
8. Developing a succession plan is critical for all business owners. No one is immortal, business owners are no exception. Having a continuity plan that addresses what would happen if they became incapacitated or prematurely passed away. Understanding options like selling the business and how a price would be determined, would the children carry it on, or are there other ways to leverage the value of their business. No matter what these options need to be realistic.
Those looking to learn more about the current real-estate market, along with other helpful business tips, can do so by attending an Engel & Volkers Honolulu Saturday seminar, and reach out via email or phone.
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