Business Exit Strategies…What Are Your Options?

Are Your Ready to Exit Your Business?

That is the question that all business owners should be asking themselves early and often and in just a few moments I am going to reveal the greatest asset to help you exit your business and a unique solution to obtain this asset.

So if you are preparing to exit your business and want to maximize you business valuation and the smoothness in your transition then continue reading and then register for an upcoming Live Webinar where I’ll reveal this proprietary solution that will increases the value of your business and help you exit with grace and dignity that you’ve worked so hard for.

[Register Here:  Proprietary Retirement Plan…Exit with Grace]

Before we get to this unique proprietary solution, allow me  to briefly touch on why so many business owners struggle to exit their business at a price they are comfortable with because understanding this is critical to maximizing your business’s valuation during this transition period.

The #1 problem business owners face when exiting their business comes down to this:

“The business only functions best when the business owner is functioning in the business”

Which poses a problem when the business owner wants to exit the business, right?  This leaves one of two common outcomes that rarely is desirable…

Scenario #1:  The business owner has to stay on for a period of 5+ years typically and their payout is contingent on how well the business performs OR

Scenario #2:  The business owner has to take less money to exit the business on their timeline.

Either way, the business owner doesn’t get what they’re looking for which is a graceful exit on their terms and at their price…so how do we fix this?

Well, let’s look at why a potential buyer would want the business owner to stay on and if not is going to offer less money.  The bottom line is the buyer knows the “value” of the business is not in the business, but in the business owner…they are paying for the value and that is you as the business owner.

This brings me to the solution…Make the value about your business not you.  How you do that is the trick!

How do you make your business (not You) the value buyers are paying for:

Here are the 3 areas your business has value (without you):

  1. The Key People
  2. The Systems
  3. The Cash

Lock in your Key People, Systems that increase profitability and increases cash and watch the value (and the price) of your business soar!  How you do that is where our Live Webinar comes in.

What if there was a way to reduce your tax exposure, lock up your key people and increase your cash on hand all with one solution?

What if this also created tax free income for you in your retirement?

That is what this proprietary retirement plan solution can do and when you register for this free live webinar below all will be revealed:

[Register Here:  Proprietary Retirement Plan…Exit with Grace]

As part of this webinar we will also discuss the difference between Qualified and Non-Qualified retirement plans and why one of these types of plans is right for you as the business owner.


You might be wondering, what are Qualified and Non-Qualified plans though, right?

Well, I go into this in my webinar, however, the short definition is as follows.

A Qualified Retirement plan is any Government sponsored retirement plan that meets the requirements set out by the government and therefore, “qualifies” for special tax incentives.  Here are some examples of qualified retirement plans:

  • 401(k)
  • 403(b)
  • Simple IRA
  • Keogh
  • ESOP
  • Roth 401(k)
  • IRA

All of the above types of retirement plans have to meet Government guidelines all designed to make sure that highly compensated employees including the business owner do not proportionally benefit more than the non-highly compensated employees and why?  Because Qualified Retirement plans are designed to benefit your employees first and foremost.  If you as a business owner benefit too then so be it, but not more than the everyday worker.

Which is fine because your employees deserve a good retirement and so do you!

Then what is a Non-Qualified Plan?  EVERYTHING ELSE that is not a Qualified Plan.

So let’s take a quick look at the Pros and Cons of both Qualified and Non-Qualified Retirement plans from the business owner’s perspective…

Pros of Qualified Retirement Plans:

Qualified Retirement Plan Pro #1:  Tax incentives for all!

All qualified retirement plans offer some form of a tax incentive.  Typically either a tax deduction OR tax free distribution (but never both) and usually tax differed growth.  Essentially you have to choose whether you want a tax break now or when you take the money out.

Whether taking a tax break now or when you take the money out as a distribution is better is discussed in my live webinar so if you haven’t already register for my upcoming webinar to see a realistic scenario on the impact of saving taxes today vs. tomorrow.

[Register Here:  Proprietary Retirement Plan…Exit with Grace]

Qualified Retirement Plan Con #1:  Higher Administrative Cost

When you have a qualified retirement plan there are typically higher administrative costs because…you have to make sure that you are meeting the government guidelines to qualify every year AND if you don’t there are considerable more costs like paying taxes and penalties.

It is not uncommon to pay a third party administrator also known as a TPA upwards of $20,000 to administer your retirement or even more.

So what are these TPA’s doing to justify this fee?  Well, that is Con #2…

Qualified Retirement Plan Con #2:  Testing

Every year they have to run various tests to make sure that what occurred within the retirement plan meet those Government guidelines to qualify for the tax incentives.

But what happens IF the testing shows that the plan is not meeting the Government guidelines?  You run into Con #3…

Qualified Retirement Plan Con #3:  Contribution Limits

When you fail the testing the result is the highly compensated individuals like the business owner or anyone who is considered a key employee are limited on how much they can invest in their qualified retirement plan.

This is why any 401(k), 403(b), SEP IRA, Keogh, or Simple IRA is really best suited to help your employees first and foremost.

So what about Non-Qualified retirement plans?

Well, it’s basically the exact opposite of Qualified Retirement plans.  Let’s look at the specific pros and cons.

Non-Qualified Retirement Plan Pro #1:  Lower Administrative Costs

Typically, Non-Qualified plans have lower administrative costs because…of Pro #2:

Non-Qualified Retirement Plan Pro #2:  No Testing

Since a Non-Qualified plan doesn’t qualify for Government sponsored tax incentives it doesn’t have to be tested…therefore lower administrative costs AND because there is no testing there is also…

Non-Qualified Retirement Plan Pro #3:  No Contribution Limits

No contribution limits by the Government!  That’s right, there are no Government rules on how much you can invest in a non-qualified plan as well as no other restrictions like when you can access the money and what to use it for.

It’s your money with no strings attached by the Government.

Can you see how this could be beneficial to the business owner?  Unlike in Qualified Retirement plans you can do what you want with your money regardless of whether or not it gives you a larger benefit than your other employees.

So what are the cons then?  Well there is only one con and that is…

Non-Qualified Retirement Plan Con #1:  No Government Sponsored Tax Incentives

Now notice that I said “Government Sponsored Tax Incentives” because that doesn’t mean there can’t be tax incentives built into the vehicles you use to save for retirement.  Which means that you if you structure your Non-Qualified plan properly you can still have 2 out of 3 tax incentives OR if you register for an upcoming Live Webinar you find out about a proprietary retirement solution that for the first time can give you the following:

  1. Tax deduction today as the business owner
  2. Tax deferred growth
  3. Tax free distribution

AND with all the Pros of a Non-Qualified retirement plan…just register below if you haven’t already where this proprietary solution will be revealed:

[Register Here:  Proprietary Retirement Plan…Exit with Grace]

In addition to this unique tax efficient strategy I will also reveal the 3 Tiers of Distinction in our proprietary retirement plan including:

  1. Front Loading
  2. Power of Indexing
  3. Tax Free Distributions

Here’s a taste of what we will talk about in the live webinar about each tier of distinction.

Tier #1:  Front Loading

Let me start out by asking you a simple question, “Would you rather invest $100,000 every year for 10 years OR invest a $1,000,000 in year 1?”

The answer mathematically speaking is $1,000,000 in year one because you will have more money after 10 years assuming the same rate of return…that’s the power of front loading and if you are wondering, “How” then register for the webinar and all will be revealed.

Tier #2:  Power of Indexing

Do you know what a recent 20 year study revealed was the average Mutual Fund return over that same time period?  It will surprise you and not because of how high it was.  In fact it was nearly HALF of what the return was on Indexes.

Do you know as a percentage how many Mutual Funds failed to beat their unmanaged index benchmarks?  Well, let’s just say there were a lot more that didn’t perform better than did…every year for 20 years!

All of these numbers of course I touch on in my Live Webinar, but even more concerning is the impact of losses in your portfolio which is why it is more important to minimize your losses than maximize your returns!

How would you like a portfolio that no matter how much the stock market drops you never lose a single penny to market risk?  What if when all your friend’s are talking about the beating they are taking in the stock market you can say, “Eh, didn’t lose any money today.”

What if back in 2008 when many people lost 40-50% of their retirement assets you didn’t lose a single dime?

If you want to see (based on the numbers) the power of indexing and how you could never lose another penny because the stock market dropped then register below:

[Register Here:  Proprietary Retirement Plan…Exit with Grace]

Now Tier #1 and Tier #2 are very distinctive and provide incredible value, however, it is Tier #3 that is arguably the most important…because it will put more money in your pocket than any other distinction.

Tier #3:  Tax Free Distribution

It’s not about how much money you make…it’s about how much money you keep!

AND if you are not paying attention to taxes on your distribution then you might be losing more money than you keep!

This is often hotly debated, but in our Live Webinar I will walk through an example where the numbers speak for themselves so if you are interested in ending the debate of whether to take the tax break now or tomorrow register for the webinar and never question when to pay taxes again:
[Register Here:  Proprietary Retirement Plan…Exit with Grace]

Then again…if you would prefer to make this decision even easier and avoid paying taxes today AND avoid paying taxes tomorrow then our proprietary solution has a unique wrinkle that lets you save on taxes at all stages of the game!

In addition to establishing a Non-Qualified retirement plan that…

  1. Harnesses the ability to front load you retirement
  2. Uses the Power of Indexing to grow your money
  3. Maximizes how much money you keep with Tax Free distributions

We also work with business owners to really partner with you and help you grow your business through additional financial services like (but not limited to):

  • Business Brokerage Services
  • Franchise Development
  • Corporate Loans

As a trusted business partner we also find it important to help you minimize your bottom line through services that include:

  • Tax Incentives that go beyond your typical CPA
  • Lowering Your Property Taxes
  • Expense Reduction without changing your vendors

If you would like to learn more about these services follow the link to my other blog where I go into more detail and you’ll have an opportunity register for another Live Webinar where I dive into these topics in greater detail:

[Live Webinar:  Minimize Your Business Bottom Line]

Now you might be wondering how we do all this?  Well after over 12 years in the financial services industry I was left thinking that the only place to necessary expertise was with a large CPA firm like Deloitte or Ernst and Young and most small and medium sized businesses can’t afford the bill of a Deloitte or Ernst and Young so most business owners have missed out on the types of services that Fortune 500 companies have enjoyed for decades.

Until now because I was fortunate to find an agency that for the last 18 years has quietly been filling the need for bringing Fortune 500 level consulting to small and medium sized businesses without the massive price tag!

In fact, you’ll be happy to know that we don’t charge large consulting fees up front…in fact for some of our services we don’t charge you a single dime!  So if you would like to know more about the agency I represent and how we are compensated for the incredible work we provide then follow the link below and register for our next upcoming Live Webinar where all will be revealed:

[Register Here:  Proprietary Retirement Plan…Exit with Grace]

Until next time, make a great day by taking massive action so you can make it a great day for someone else who might need your help!

Kyle Payne

Stryde Senior Agent

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