59: Are You Protected From These 4 Business Killers with Scott Calhoun

If you think you will just sell your business and retire, think again. Very few roofing businesses will end in a sale or transfer to the next generation. Most will just close their doors. Join us to hear how, with careful planning, you can avoid the dreaded 4 D’s that kill so many businesses. What you’ll hear in this episode: Setting up corporate structure: why you should avoid sole proprietorship structure Why your personal money MUST be separate from the company’s money Scott’s tips to avoid “losing the corporate veil” The Four D’s that can kill your business, and how to avoid them (or at least minimize the damage): Dissolution—Have policies (like a “Shoot-out Provision”) in place to protect a 50/50 partnership Divorce—Have a written agreement to give notice of a buyout opportunity in case of a divorce Death—Have an agreed valuation every year, have life insurance in place, and have a plan in the event of the owner’s death or retirement Disability—Have disability insurance, talk about the possibility, and put your plan down on paper. Plan ahead! Plan ahead for the 2nd generation of your business and think about your business 10 years from now. “What we’re discussing are ways to protect and preserve the business from potential issues that you can avoid if you simply take the direct and up-front approach of doing proper planning, considering the issues, and putting measures in place.” Resources: Website: HPSS Law Check out the retainer program offered by Scott’s firm! Email: [email protected]