10 Common Business Planning Questions

Most business owners will start their company by sitting down and answering a few business planning questions. This is highly recommended as you need to know everything about your field before you even consider opening your doors. However, it’s also important to continue this practice even after you’ve open up shop. The following includes 10 common questions you should answer before and after you’ve opened your business.

10. Business Planning Questions Involving Your Industry

One of the most commonly unanswered questions by many business owners is forgetting to establish what exact industry they are in. For example, if you’re a landscaping company, then landscaping is your industry. Issues arise when this isn’t clear, and you begin to believe that you’re in the soil or seed industry.

9. What Are Your 5- and 10-Year Goals?

Much like any employee, you should also ask this of your own company. Knowing where you need to aim is critical to the continuing growth of your business. It allows you to plan for future challenges without overextending yourself. It is recommended to answer this question with the help of a business planning lawyer Las Vegas firm. Doing so may provide you with a better financial outlook.

8. Who and Where Are Your Customers?

As you can tell, knowing your target audience is incredibly important if you want to succeed. This means understanding who is likely to purchase from you and where they are located. It is a tedious process, but one that is definitely required to succeed.

7. What Exact Products/Services Do You Provide?

Very much like you should know your industry, you should also know exactly what you are selling. Do you know what your employees should be pushing, and are they even wanted by the customer?

6. What’s Your Marketing Strategy?

You can have the best product/service in the world, and it won’t matter if you don’t know how to market it. Knowing how to get people into your storefront or website is critical to the success of your company.

5. What’s Your Training Process?

As much attention as you should pay on your products and marketing, so should you also to your employees’ training. The fact is that people are going to see your employees as representatives of the company, and thus whatever they do will reflect on yourself and the business.

4. Do You Have Enough Capital?

As you may already know, a business’s goal is to make money, not lose it. Unfortunately, many company owners open up shop before they are financially ready for it. Seeking and obtaining capital for your business is critical to your company’s success. Those wanting to avoid a high-interest business loan may benefit from this as well.

3. How Are You Going to Measure Your Progress?

Unfortunately, revenue isn’t the only metric of how successful you are. There have been many companies who will see instant success only to fail a year later. Therefore, understanding how you should measure your progress is so critical. Customer perception of your company and your product/service quality are just some of the other factors that should be included.

2. How Do You Attract the Right Talent?

Your business will only succeed if it has the right people on board. This includes everyone from shipping to high-level management. Failure to focus on bringing in the right talent can see your business close up shop sooner than you would like.

1. What Do Your Customers Value and Want?

Understanding your customer base values and wants can place you above the competition. No, you should not pretend to align with their values but rather see where your current values fit into their lives.

How Financial Planning Can Help Your Children Be Responsible

When it comes to passing on wealth to your children, it is imperative that you have a formal plan of action in place. Simply giving your children a large sum of money could lead to financial mishaps and be devastating. Proper financial planning, such as including a contingency in your will, helps to provide for your children long after you’re gone and can help teach them to provide for themselves.

Nothing in Life Is Free

As a parent, it is only right that you want the absolute best for your child. However, teaching them to be responsible adults is what’s best for them as well. Opening a trust fund is a great way to pass wealth onto your kids once they have reached a certain age. One of the great things about this is that you can place contingencies on it such as an age or educational requirement before they can receive the funds.

Financial Planning Is Not Just for the Wealthy

Not only can anyone put a financial plan into action, but if you are an average working citizen, then it would really behoove you to do so. Something that happens too often with middle-class and poor people is that the only thing they pass on to their family is debt. Consulting with an attorney about will writing can help you set your focus on your finances and start getting them in order while you still can.

People Appreciate What They Work For

Although you are technically passing down wealth, you can still have your children earn what they are getting with contingencies in your will. By talking with an estate planning lawyer in Las Vegas, you can learn how to include clauses so you can provide for your kids while helping them become fiscally responsible. One of the easiest ways to do this would be to only allow a small disbursement of funds at a time, which will help your children practice budgeting and possibly investing.

Should Your Children Be Your Executors? Weighing the Pros and Cons

Although naming your children as the executor of your will is a fairly common practice, you’ll want to consider all of your options before you make a final decision. An executor has several legal and financial responsibilities, so it’s natural to choose a child you know you can trust when considering possible executors. With that said, selecting a more neutral party can several advantages.

Understanding Executors’ Legal Responsibilities

Above all else, the executor of your last will and testament is responsible for making sure that your estate is divided amicably among your family members. In addition, it’s the executor’s responsibility to notify all appropriate government entities, financial institutions, and other parties that you have passed away. Furthermore, the executor is also responsible for filing your last income tax return and all estate tax forms.

Selecting Your Executor

Even if all of your children have always been very responsible, you’ll want to make sure they are comfortable handling legal and financial paperwork before you even think about naming one of them as the executor of your will. You’ll also want to consider whether being the person to file paperwork on your behalf after you have passed away would cause undue emotional stress.

Also, if you have more than one child, then picking only one to be the executor may offend the other siblings. After all, everybody in the family may end up wondering if the executor is favoring himself or herself in the distribution of your estate.

The Advantages of Choosing a Neutral Party

Since being an executor can be so emotionally draining, many people choose to appoint relatives, close friends, or a qualified attorney instead of their children. Bringing in a neutral party to distribute your estate can help put everybody named in your will at ease, and people are less likely to end up feeling slighted or conspired against. A trust administration lawyer in Las Vegas may be able to help you evaluate your options.

When to Consider Creating a Foundation With Your Estate

Creating a foundation may be an effective estate planning tool for those who want to preserve their legacy for generations to come. Family members may be able to work as employees of a private foundation, which means that they can draw a salary for as long as the organization exists. Furthermore, there are several strategies that allow you to use your foundation to minimize your estate tax bill.

How to Minimize Your Tax Bill by Creating a Foundation

Any assets that are owned by your foundation are considered to be held outside of your estate. Therefore, they won’t be included for purposes of calculating its value upon your death. Furthermore, up to 30% of the value of any property sold by this entity will be exempt from capital gains taxes.

The Potential Downfalls of Creating a Foundation

As a general rule, your private foundation is considered a separate legal entity. Therefore, you will need to keep detailed records of any donations that it made and any income that it earned throughout the year. Furthermore, there are various IRS tax reporting and accounting rules that must be respected at all times. There is a good chance that you will need to hire an accountant, an attorney and other professionals to make sure that you’re in compliance with these rules.

Financial and Other Professionals May Offer More Insight

A probate attorney in Las Vegas may be able to provide insight into whether it’s worth creating a foundation. An attorney might also be able to review your estate plan to determine if it was created properly. Other professionals such as accountants or financial planners can also help answer any estate planning questions that you might have.