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BUSINESS PLANNING
No matter how well established and well organized your
company, you can always increase your efficiency. Whether your concerns involve
business continuation planning, cost-effective group benefits or providing for your
own retirement, obvious answers are not always easy to come by. Perhaps the answers
you do get come from sources that conflict with each other. Why don't the answers
match up? The fact of the matter is that every business owner has different philosophies
and expectations regarding their business and their employer/employee relationship.
Your Hantz Financial® consultant will
ease the conflicts so that you can do what you do best - run your business. How
can we assist you? When you work with a Hantz consultant, you are actually leveraging
an integrated team of powerful and expertly trained specialist. Nobody can or will
match our unique team approach. As you work together with the Hantz team, your consultant
helps you first identify your core business philosophies and expectations. In the
next phase they review your current business structure, your employee benefit and
retirement programs, your business succession plan, and other matters to ensure
that your existing programs are properly aligned with these philosophies and expectations.
Finally, your consultant and the entire team will clarify your business expectations
and make sure that all efforts are directed toward that end.
Operation Profile
An operation profile is an analysis of the financial
operations of your company. Together we review your current and past balance sheets,
as well as your income statements to understand the foundation of your business.
Good "financials" are the basis of all findings in your operation profile. We cover
the following areas:
Activity Based Costing
Activity Based Costing allows you to allocate cost to each of your revenue producing
activities. It also provides you with a better measure of profitability. Your company's
management can then easily identify expenses that need to be reduced as well as
profitability that could be increased.
Ratio Comparisons
Ratio comparisons let your shareholders compare the company's profitability and
efficiency to industry averages. You will better understand the strengths and weaknesses
of your company's operations, resulting in remedial measures that will optimize
your company's operational efficiency.
Debt Structure Analysis
Here we look at long-term debt in relation to total assets to help determine if
your company's debt service costs are in line with your industry. Restructuring
debt can save interest expense and improve cash flow. Something we all desire.
Business Valuation
We complete a business valuation based on your financials. We provide valuations
not only on the net asset value, but also on the revenue stream. Adjustments are
made for depreciation, owner compensation, good will, and weighted averages for
the income stream. An appropriate valuation allows you, the business owner, to properly
protect the value of your business assets. It also assures you that your family
receives proper compensation for your business in the case of a disability or a
death.
Entity Structure Analysis
Entity Structure Analysis is a comparison of the current corporate structure to
other possible corporate structures. For example, the comparison of a C-Corporation
to an S-Corporation, a Limited Liability Corporation and a Partnership. This allows
you to see the tax advantages and disadvantages of each structure, based on your
current needs and future goals. The comparison also provides for different ownership
restrictions based on the corporate characteristics of the different entity structures.
Different structures can make it easier to have disproportionate distributions of
incomes, and thus make it easier to raise capitol income and lower taxes. This analysis
may lead to changes in entity structure or forming additional corporations to help
you achieve your goals.
Benefit Planning
How do you reward and retain the key people who
drive your business success? The Hantz Compensation Planning Team will guide you
in designing an effective compensation program to reward your key employees for
their outstanding contributions, and most importantly helps you retain these talented
and diligent employees. Our custom designed compensation programs reward your employees
in ways that they will definitely appreciate. Furthermore, we will make sure your
compensation program is manageable and affordable.
Succession Planning
The Hantz team combines both your personal financial and
estate planning needs with the business needs of your company. We integrate those
needs to create the best possible solutions to help you meet your goals, while maintaining
the integrity of your business.
To receive fair market value for your business, you need a solid transition strategy.
Many business owners too often convince themselves that they will never retire,
and thus they inadequately plan for the eventual transition of their business ownership
to others. As a result of this lack of planning, many business owners and their
families receive much less than the fair market value of their business.
The diminishing value of their business happens because their business was sold
as an estate asset to pay estate taxes, or because of the decline in health of the
primary owner. Since little or no planning has been done in advance, the business
is often liquidated at liquidation prices simply because no one is in line to operate
the business like the previous owner. However, even if a capable employee can operate
the business the financing of the sale is inadequate for the previous owner to receive
the fair market value. Without proper planning and guidance, the business owner
may needlessly end up paying unnecessary taxes.
Frequently, a business owner would like to leave the business to a family member,
and without knowing it the owner can run afoul of the IRS Family Attribution Rules.
This then leaves the entire transaction in jeopardy from a tax liability standpoint.
When passing a business from one family member to another, estate tax law comes
into play, and without proper planning, as much as 55 percent of the estate may
be lost. Sadly, too many businesses have to be liquidated to meet this tax payment.
The Hantz team can help you make sure your family can retain the your business and
continue the tradition.
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