The Four Stages of a Business’ Life

As you establish, grow and eventually exit your business, protecting what matters most to you will naturally change.

Below are four of the main stages of business’ life and how you can grow and protect your business income and wealth.

Beacon Point Financial Security Limited :: Four Life Stages for Corporations

Business Life Stage 1 – Starting Your Business

Starting a business in an exciting endeavor. While there are many things to consider, sound financial footing is essential for every successful business.

Your Business Income

In the exciting startup phase, it’s all hands on deck for finding clients and customers, and building your business income. When you’re self-employed or a small business, protect yourself by investing in individual health benefits, and it’s never too early to put living benefits and life insurance in place.

Your Business Finances Strategy

When you own a business, taking a holistic approach to considering your personal and corporate tax situation is the cornerstone of tax-reduction strategies. Having your business own your life insurance and living benefits policies is one of many simple strategies you can use to pay less tax overall.

Protecting What Matters Most

In the beginning stage, you like wear many hats in your business: sales, production, operations and more. What would happen to your business and family if you were injured, fell ill or worse? Living benefits and life insurance policies can help give you a safety net so you can focus on establishing and building your business.

Business Life Stage 2 – Growing Your Business

Once established, attracting the right talent helps growth. With steady cashflow, you can protect your business in ways you may not have been able to previously afford.

Your Business Income

As you enter the growth stage of your business, a lucrative group health benefits plan and even a group investment plan can help attract the top talent that will bring the expertise and experience to fuel your continued growth.

Your Business Finances Strategy

As your corporate revenues increase, so will your tax exposure. By continuing a holistic approach to your personal and corporate tax situation, tax reduction strategies get more complicated but can deliver significant tax savings.

Protecting What Matters Most

As your business grows, a solid health and dental benefits plan can help protect you, your employees and your families. Corporate-owned insurance policies can protect your business if something were to happen to you, your partners, or key employees within your thriving business.

Life Stage 3 – Your Mature Business

Even while enjoying the success of your business, continued financial diligence can provide continued tax savings and protect your business and what matters most to you.

Your Business Income

With a mature business, you likely have higher levels of personal income and even profits that you can use to build your personal wealth and investment portfolio. Reducing the amount of taxes and you and your business pay is always part of managing your income.

Your Business Finances Strategy

Even in a mature business, it is always prudent to keep tax reduction strategies top-of-mind. Fortifying your corporate-owned insurance provides further protection against unforeseen circumstances. Even if it’s several years away, laying the groundwork for your business succession plan can help you get the highest value out of what you’ve built.

Protecting What Matters Most

In the beginning stage, you like wear many hats in your business: sales, production, operations and more. What would happen to your business and family if you were injured, fell ill or worse? Living benefits and life insurance policies can help give you a safety net so you can focus on establishing and building your business.

Life Stage 4 – Transitioning Out of Your Business

Exiting your business – whether selling to external investors or transitioning to the next generation of your family – gives you more time to do the things you want and enjoy the fruits of your hard labour.

Your Business Income

As you are transitioning out of your business, you can still draw a significant income without paying excessive taxes. If you’re transitioning the business ownership to the next generation of your family, we can help optimize how they add their ownership shares to their investment portfolios and pay themselves to minimize the total amount of taxes they’ll pay.

Your Business Finances Strategy

As you exit your business, your focus should be on maximizing the amount of value you get out of your succession while minimizing the amount of taxes you and your business pay. With the right business succession strategies, you can significantly reduce the amount of taxes you and your successors pay during the transition of operations and ownership.

Protecting What Matters Most

Keeping your existing corporate-owned insurance policies can protect your legacy position in the business, and insuring the new generation of managers and key personnel can provide continued protection through and beyond the succession of the business.

BeaconPoint Financial Security Limited :: Let Our Team of Financial Advisory Experts Help You Protect What Matters Most to You!

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