The Wrong Business Partner Can Create Lifetime Pain

People select a business partner for a variety of reasons. It may be that one partner brings the required financing or a degree of expertise the other does not have or a group of individuals tackle a new business initiative together.

Regardless of your reason for seeking and selecting a business partner its important to be on the lookout for the right mix. The care business – the task of serving humans – is different! You need someone you can work well with and who shares your ideals so here are a few types you may want to avoid.

The Money Grubber

Some individuals, including those who enter the care business – assisted living, home health care, visiting physician practices – are not people centered at all. Their vision does not extend beyond the receivables and they have little to no concern over the delicate, emotional issues affecting those they serve. They take little time to encourage, uplift, inspire or dignify others.

So if you are people centered and among those who have the maturity to balance the financial with humanitarianism then you want a business partner with the same ideals.

The Envious

Remember the difference between the jealous person and the envious person. The jealous person may resent your advantages, perceived or real. The envious person resents them and wants to strip you of them. This is an incredibly dangerous personality type.

This is the person who after a few weeks of operation is suspicious, for no good reason, about what compensation you may be taking from the business. They do not inquire, they accuse. If you have other sources of income they want to know what they are and how much money they represent.

They are often prisoners of their own insecurities and have the spirituality of Judas Iscariot himself. You will want to watch for this type of person who wants to be your business partner.

The Power Nut

This is the person who regardless of what duties are assigned to them – which they accept – prefer to demonstrate the authority they feel being a business owner should bring. Maybe they want to boss employees who do not directly report to them or they undermine certain decisions made by the partner who has the authority to make them.

If this person does not respond to reason, confusion will settle in and the progress of the business will be compromised.

The Perpetually Ignorant

Everyone who enters into a particular business model is not always super literate in everything that business involves. This is why we have consultants all over the place. However, if you enter into a business model which is new to you it is up to this new partner to investigate the regulatory and operational apparatus affecting that business type.

Some clearly do not invest the time into learning all that the business model involves.

They do not use the internet or available resources from the state of operation. They ask questions months into the partnership they should have known well by now. Some even use ignorance as a basis for feeding both insecurity and fears they create.

Learn how curious a prospective business partner is to learn the business model and not just sit around hoping they can collect a new income. If you discern they are not sufficiently curious this might not be the partner you need.

The Weak Minded

How often have you talked to the person who has all the answers their friend told them were true about your business plan and the information they pass along is as far from reality as you could have ever imagined. It happens everyday.

Some cousin, friend from across the world, etc. who needs to prove they have this person’s best interests at heart feeds them all of this garbage and you have to come back and clean it up. Problem is it is already fact in this person’s mind and their being weak minded will only bring you further grief. Its time to rethink this business union. You need clear, comprehensive, analytical thinkers, not followers or the work environment will sour often.

Partnerships are not evil but the wrong one can surely make you think they are. So be careful and discerning. Your lifelong fulfillment might be at stake.

Is Selling Your Business to Your Key Employees/ESOP the Best Way to Sell It?

Once a business owner decides to sell their business, the most difficult choice is how? The choices are many, a fire sale, liquidation, passing it on to heirs, or selling it to the key employees of the company… the list can be overwhelming and confuse anyone. One of the preferred ways to sell out a business is considered to be selling it to the employees/ESOP as it is very flexible and has tax advantages.

Many business owners do not completely understand the implications of ESOP and feel that it is more in the benefits of the employees rather than being a buyout aid. There are quite a few benefits to ESOP:

  • The transaction is not structured by the employees or the management, but by the company itself
  • The evaluation of the company’s assets is done by an independent professional rather than by one of the involved parties
  • All the shares don’t have to be sold at the same time, there is an option for the shareholders to choose between selling at the time or later or even sell the stocks on a pro-rata basis and they will still hold the balance for any appreciation in the future
  • There are tax benefits but the business owner needs to check them to get the latest information when they decide to go ahead with the option
  • The business owner does not have to completely lose control of the company as there are options to only sell a part of the company while still retaining control, so for those who are looking at making a sale to cover expenses, but do not want to let go of their business, this options suits the need
  • The employees involved in the process are motivated as their ownership increases a lot and this also impacts the business in a tremendously positive way
  • Provides further security to the employees as they now hold stock options, which makes them look at better ways to make the company more successful
  • Companies owned by employees have a high percentage of success wherein the profits are better, the employee turnover is very low, and the growth is faster because it is those who have worked hard in the company who now have a bigger stake in it, these businesses perform better than non-employee owned ones.
  • ESOP provides additional benefits to those employees who have been a big part of the company since a long time and have played key roles in its survival and success

Selling your business to your employees may feel like sharing the control of the company and having to collaborate with others where you were the sole responsible person earlier, however for some, this is a better options as it not only keeps the business still with you. It keeps the business alive, and benefits the business in many different ways which may just be the change it needs. So while making the decision to sell out your business, weigh your options and find out what this option would offer you as per the current laws, make an informed decision.

Importance Of “Business Owners” Insurance

Different kinds of businesses have a high degree of risks, which may decrease the profitability and hinder it from functioning efficiently. These particular risks just occur un-expectantly in the course the daily operations. In order to have your business indemnified from the liability related business exposures, you should have business owners insurance. With this kind of insurance you are assured of a significant impact on your business, in case of any compensation claim or damage of your company. This insurance will protect you against workplace accidents, damage, injury and theft. It also provides protection against any kind of damage related to inventory, material destruction or machinery, among others.

This insurance for term life is very vital because the endeavor of starting a business is stressful. Regardless of the commitments you have with your basic operations, time to cater for the key person is highly required. This can only be achieved getting your self insurance for business owners.

Unlike any other business, small ones also require insurance so as to cover mobile devices. Small business insurance is an essential measure that can safeguard your business well. The power of this insurance is known during the critical times. Getting insured as an owner will give you are the honor of being noticed as a smart business owner. When insuring your small business, it is important to first decide on the aspects you wish to insure such like personal property insurance and crime insurance.

Another important element to a small one is the small business liability insurance. This insurance covers and protects the business from any kind of claim thus securing your business from bankruptcy and legal fee. If you are running this kind of business and you don’t have the small business liability insurance, in case of a sued event of your customers or client, you won’t be protected. This insurance liability for small business does not protect the small business proper partnership. This means that if your small business is partnering with other business in case of a suit with clients your assets will at stake without argument. To save yourself from future headaches it is better you choose to run it on your own and get this Insurance.

So the next time, you plan to start a business or are a part if a start up, get your self-insured with this Self Business Insurance and run your business without any tension.