Watering the Seeds of Business Development

If you’re like many small business owners, it may not feel like much of a recovery, at least yet. Actually, this could still be the most dangerous time for businesses, with resources cut to the bone and few reserves remaining in the emergency root cellar. All the more reason to develop a four-step strategy that brings your business through the next few months and positions it for growth as the economy strengthens.

1. Protect Your Customer Base
Your customers are vital assets. They provide the cash to make everything else happen. Start with some creative, short-term marketing to keep cash flowing for the next several months. First of all, advertise, so your customers know you’re still there. Call or write preferred customers to thank them for past business and remind them s. If one of your customers is looking to lower expenses, it may be better to offer a reduction yourself than find out that he or she went elsewhere.
2. Protect Your Employee
Do what it takes to retain quality employees, your greatest business assets. They’ve stayed with you this long: don’t let them slip away now.

First, do not cut pay or benefits. They’ll think your ship is sinking and they may jump. Instead, consider expanding your benefit package.

Look at future benefits. Now may be an ideal time to explore 401(k) or other qualified plan options.  Then, if you like, defer the actual implementation until later in the year. This strategy gives your employees a vision for the future. Plus, it boosts their faith that there will be a future

3. Protect Your Business Infrastructure and Long-term Plans
Draft or update your buy-sell agreement for the eventual transfer of your company at your own retirement or death. Also, look at key executive insurance to help protect your company from loss if a valued employee should die prematurely.

4. Protect Your Company’s and Your Family’s Investment in You
While it’s not polite to brag, you are your business’s greatest business asset, the linchpin that holds everything together. So, protect yourself. Review your company’s life insurance program. That way, if something happens to you, your business and your family will be financially protected.

A Tall Order? Not Really. Plus, There’s No Reason to Go it Alone.
For further information on how insurance and other financial products can be used in business planning, please contact William W. Kimbrough, Agent, New York Life Insurance Company, at 229/242-4153.

Note: Neither New York Life nor its agents offer legal or tax advice. Please talk to your own advisors for legal and tax advice.