Category: Income from your business

How to Identify and Solve the Problems Holding Your Business Back

by YOUR BUSINESS WORTH, posted in Business Growth and Transition, Company Wealth, Income from your business, Inside Sale, Key People_Or Group, Passive Ownership, retirement, Selling Your Business, Strategies of growing business, Tax Efficient, Team

A Simple Business Planning Process for Growth, Value, and Future Freedom

By Thomas J. Perrone, CLU, CIC

Most business owners are excellent at solving immediate problems — customer concerns, cash flow, staffing, vendor issues. What often gets neglected are the larger problems quietly limiting growth, value, and future options.

The greatest danger isn’t having problems. It’s failing to identify the ones that could affect your business’s future — and your own financial security.

That’s the purpose of the One Page Solution: a simple process for evaluating your company, identifying the most important issue, and taking manageable steps toward a solution — one problem at a time.

Growth and Transition Are Connected

Business owners tend to treat growth and transition as separate issues. They aren’t.

Growth is about the systems, people, and performance that build a stronger company. Transition is about your eventual exit — retirement, sale, family succession, or an unexpected disability or death.

The two are linked: greater profitability creates options for personal wealth and retirement security, while your personal goals (retiring in five years? reducing involvement? no clear successor?) shape the decisions you make in the business today.

The One Page Solution Framework

Start with one question: What is the most important problem that could prevent you from reaching your business and personal goals?

Then map it out:

  1. The problem — what needs addressing
  2. The consequences — what happens if it’s ignored
  3. The desired outcome — what success looks like
  4. The roadblocks — what could get in the way
  5. The action steps, owners, and timeline — who does what, by when
  6. The review process — how you’ll track progress

You don’t need to fix everything at once. One important problem. One practical solution. One step at a time.

A Job vs. a Business

Ask yourself: Could you leave your business for three months without checking in, and still expect it to run well?

If not, the company may depend too heavily on you — which means you’ve built a job, not a transferable business. A buyer doesn’t want to purchase your personal effort; they want a company with systems, culture, and a management team that can operate without you.

Identify Roadblocks Early

Every strategy has roadblocks — a management gap, an under-financed buyer, too much personal wealth tied up in the company. Naming these early gives you time to solve them before they become forced decisions driven by illness, a downturn, or an unplanned sale opportunity.

Small Steps, Coordinated Advisors

Building value and preparing for transition takes time, but the first step can be small: review your company’s value, document one key system, or schedule a meeting with your advisor team (accountant, attorney, financial advisor, valuation professional). Coordinating their efforts — not just having them — is what drives results.

Start With the Right Question

If you had to leave your business tomorrow, would it continue to succeed — and would you be financially prepared?

Your answer points to the one issue worth solving first. Identify it. Understand the consequences. Define the outcome you want. Then take the first step.

Ready to identify what’s limiting your company’s growth, value, or future options? Schedule a conversation to start building a practical strategy for building and protecting your business worth.

Thomas J. Perrone, CLU, CIC is a business planning professional, author, and host of the podcast Building and Protecting Your Business Worth.

About the Author

Thomas J. Perrone, CLU, CIC is a business planning professional, author, and host of the podcast Building and Protecting Your Business Worth. He works with business owners to help them build business value, protect the company from unexpected events, develop strategies for business transition, and convert business success into long-term personal financial security.

Ready to identify the problems that may be limiting your company’s growth, value, or future options?

Schedule a conversation to discuss your business goals and begin developing a practical strategy for building and protecting your business worth.

 

For A full Report Click Here:

tperrone@necgginc.com

www.bpbpgrp.com/tom

YouTube: THE THREE UNAWARE MISTAKES business owners make!

POdcast: Hidden Dangers Every Business Owner Needs to Address

Download your Free Report: Hidden Mistakes Business Owners Make

You Built the Business. Now Let’s Make Sure It Pays You Back.

by YOUR BUSINESS WORTH, posted in Business Growth and Transition, Company Wealth, Estate Planning, Income from your business, retirement, Selling Your Business, Uncategorized, Valuation, Value drivers, Working On Your Business

By: Thomas J. Perrone, CLU,CIC -New England Consulting Group of Guilford, Inc.

A planning system that helps business owners build value in their business,  stop overpaying taxes, stop losing wealth, and creates  business value and aa path so they can walk away from their business with their wealth, and on their own terms.

The Problem

“Many business owners struggle to build personal wealth because business cash flow demands keep their money tied up. Our three-step process creates financial clarity, helps reduce wealth lost to taxes and uncertainty, and positions owners to walk away wealthy when it’s time to exit.”

Most business owners struggle with creating future wealth for their personal economic security because their businesses require so much of the financial resources and cash flow to continue to operate and grow the business.

You started with nothing but an idea and a willingness to outwork everyone else. Years later, you’ve built something real — payroll, customers, a name people trust.

But here’s what nobody tells business owners: most of your wealth is trapped. It’s tied up in a business that’s hard to value, harder to sell, and taxed at every turn. Your “retirement plan” is a vague hope that someone, someday, will buy the company for what it’s worth.

Meanwhile, every year you wait:

  • You overpay taxes on money you’ve already earned
  • Inflation and poor structuring quietly erode what you’ve built
  • Your business becomes more dependent on you, not less — which makes it harder to sell or step back from

You didn’t spend decades building this business just to hand the upside to the IRS, or to find out too late that no one wants to buy it.

You built it so you could walk away wealthy.

The Guide

That’s the problem I solve for with business owners — not as a generalist financial advisor, but as a specialist in one specific question:

How do you turn the value locked inside your business into wealth in your own hands?

I understand how hard you’ve worked—and how much of that effort has yet to become personal wealth. I learned this firsthand when my father died at 51 with nearly all his business value trapped inside the company. The company was ultimately sold for pennies on the dollar. The heartbreak my family endured motivated me to make sure other business owners would never have to experience a situation like ours.

A Three Step System to Extract the Wealth You’ve Built When You Need It the Most!

#1 GROW — Find out what your business is worth AND if you are taking advantage of all the planning opportunities available to you. A three-minute survey, called the Business Owners Personal Viewpoint, gives us enough info to create a “WHERE YOU ARE REPORT”. (A Barometer of your business).

We start with a clear-eyed look at your business value today, and what’s driving — or hurting it. Also, what areas of your planning are effective and ineffective up to now!

#2 PROJECT WEALTH — Stop the leaks- and missed opportunities!

We find where you are overpaying in taxes and where your personal wealth is exposed — then fix it. “OUR DISCOVERY REPORT”

#3 TRANSITION — Build your exit before you need it

We build the plan that lets you leave the business — by choice, not by crisis — with the money in your pocket, not just the memories. It is a plan by “Design” and not a plan by “Default”.

Resources:

Check out this video:  “Business Owners Getting This Wrong: A trapped Retirement plan. 

Get your Free Report: Building Wealth Through Your Business!

Want to discuss, use my calendar:  Toms Calendar  

 

 

What Buyers Really Look For When They Buy a Business

by YOUR BUSINESS WORTH, posted in Buy and Sell Agreements, Company Wealth, Estate Costs, Funding your Buy and Sell, Income from your business, Key People_Or Group, Life Insurance, Life Insurance Types, Transfer Costs, Value drivers, Working On Your Business

 What Buyers Really Look For When They Buy a Business

It’s Not Just About Profits—It’s About Confidence

By Thomas J. Perrone, CLU,CIC

Many business owners assume that if their company is profitable, buyers will line up and pay top dollar when it’s time to sell. Unfortunately, that’s rarely how the market works AND how a transition of their business happens. Professional buyers don’t simply buy earnings—they buy certainty when purchasing a business. They want confidence that the business will continue to produce predictable profits after the current owner walks away. The less risk they see, the more they’re willing to pay. Whether you plan to sell in three years or twenty, understanding what buyers value today gives you the opportunity to dramatically increase the value of your business before you ever put it on the market.

Buyers Want Predictable Cash Flow The first question every serious buyer asks is simple: Will this business continue generating cash flow after the owner leaves? Businesses with recurring customers, consistent profitability, stable margins, reliable financial reporting, and strong cash flow command significantly higher valuations because they reduce uncertainty. The more predictable your financial performance, the more valuable your company becomes.

Buyers Want a Business—Not a Job One of the biggest reasons businesses receive lower offers is owner dependence. If every important decision requires you… If customers only trust you… If employees rely on you… If sales stop when you stop… Then buyers aren’t purchasing a business. They’re purchasing your job. The more independent your company becomes, the more attractive it becomes to buyers.

Strong Financial Records Build Trust Professional buyers expect financial statements they can rely on. They look for:

  • Accurate financial statements
  •  Clean tax returns
  •  Monthly reporting
  •  Normalized earnings
  • Organized documentation

Disorganized books create doubt, and doubt always lowers value. Great Leadership Creates Premium Value Businesses with strong leadership teams consistently receive higher purchase offers.  Why? Because buyers know the company can continue operating successfully without the owner being involved in every decision. Companies with defined responsibilities, accountability, low employee turnover, and future leaders already in place are viewed as lower-risk investments.  

Systems Are More Valuable Than Heroics Many successful businesses rely on talented people. Exceptional businesses rely on systems. Documented procedures, operating manuals, training programs, technology, and standardized processes allow a company to produce consistent results regardless of who is running the day-to-day operations. People eventually leave.  Systems remain.

Diversification Reduces Risk Imagine one customer accounts for 40% of your revenue. A buyer immediately sees risk. The same concern exists if your company depends on one salesperson, one supplier, or one product. Diversifying your customer base and revenue sources creates stability—and stability increases business value.

Buyers Purchase Future Growth Buyers aren’t just investing in today’s profits. They’re investing in tomorrow’s opportunities. They want to know:

  •  Can revenue increase?
  •  Can margins improve?
  •  Are new products possible?
  • Can technology improve efficiency?
  • Can the business expand into new markets?

Often, future growth potential is worth more than current earnings.

Eliminate Deal Killers Before Buyers Find Them Unexpected problems can quickly reduce purchase price—or stop a transaction entirely.

  • Common deal killers include:
  • Pending legal issues
  •  Poor contracts
  •  Tax problems
  •  Environmental concerns
  •  Employee disputes

The fewer surprises buyers uncover during due diligence, the smoother and more profitable the transaction becomes.

The Most Valuable Businesses Are Transferable Ultimately, buyers ask one question: **”Can I step into this business and continue operating successfully?”** If the answer is yes, buyers compete. If the answer is no, they negotiate. Transferability is one of the greatest drivers of business value. ## The Best Time to Prepare Is Years Before You Sell Increasing the value of your business isn’t something you accomplish six months before retirement. The most successful exits are planned years in advance.

Owners who prepare early enjoy:

  • Higher business valuations
  •  More negotiating leverage
  •  Greater financial security
  •  More retirement options
  •  Less stress during the sale process

How the GWT System Helps Business Owners Increase Business Value The GWT System was designed to help business owners move beyond simply operating their company to building a business that creates long-term wealth. By focusing on enterprise value, executive compensation strategies, retirement planning, succession planning, and owner independence, business owners can strengthen both their company and their personal financial future. The goal isn’t simply selling your business.  The goal is creating financial freedom.

Ready to Find Out How Valuable Your Business Really Is? If you’d like to learn how prepared your business is for a future sale—or discover the areas that could significantly increase its value—schedule a confidential conversation today. Thomas J. Perrone, CLU, CIC, New England Consulting Group of Guilford, Inc. **Building and Protecting Your Business Worth**,Helping business owners build wealth, increase enterprise value, and retire with confidence.

VIEWPOINT: To plan for the future you need to know where you are currently in your planning, This short 4 minute survey is enough information for us to complete and send you a report called the “Where You Are Report”.  This will help you plan for your future.   To take the survey CLICK HERE

ALSO, get your “Business Essentials Guide”, a quick reference guide to business planning: Click Here CALENDAR FOR CONFERENCE CALL:  Click Here  

Four Pillars of a Strong Business: Growth, Protection, Transition, Equity

by YOUR BUSINESS WORTH, posted in Business Growth and Transition, Buy and Sell Agreements, Company Wealth, Executive Benefits, Income from your business, Key People_Or Group, Selling Your Business, Strategies of growing business, Working On Your Business

Are You Building Your Business by Design… or by Luck?

By Thomas J. Perrone, CLU, CIC

Most small business owners don’t start their journey with a lack of ambition. They work hard, grow steadily, and pour everything into their company. But at some point, an uncomfortable question surfaces:

Is my business growth intentional… or is it just happening?

If you’re like many owners, you’re fully absorbed in the daily demands of running your business. And while revenue may be increasing, key areas—financial planning, protection strategies, and long-term transition—often go overlooked.

That’s where risk quietly builds.

The Hidden Gaps in Growing Businesses

Many business owners are aware—sometimes painfully aware—that critical elements are being neglected. Not because they don’t care, but because they simply don’t have the time, clarity, or structure to address them.

These gaps often include:

  • No clear long-term growth strategy
  • Limited protection against unexpected events
  • Inefficient tax planning
  • No defined exit or succession plan
  • Uncertainty about how to turn business success into personal financial security

Without addressing these, even a successful business can become fragile.

The Questions Every Business Owner Should Ask

Take a moment to consider:

  • Do you have a clear, fail-safe plan to grow, protect, and eventually transition your business?
  • If you had to step away tomorrow—due to retirement, disability, or worse—what would happen?
  • Could you extract your business value in the most tax-efficient way possible?
  • Are you maximizing your compensation and benefits through your business?
  • Do you have a plan for the unexpected—economic downturns, key employee loss, or sudden life events?

If any of these questions are difficult to answer, you’re not alone—but it’s a sign that planning is overdue.

From Uncertainty to a “Destiny Plan”

What many business owners need isn’t more complexity—it’s clarity.

A structured approach—often referred to as a “Destiny Plan”—focuses on aligning your business with your ideal life and financial future. It brings together the key elements that drive long-term success and security into one cohesive strategy.

At its core, this approach focuses on four essential pillars:

1. Growth: Building with Purpose

Growth should be intentional, not accidental. That means:

  • Implementing systems that scale
  • Developing strong leadership and teams
  • Focusing on the true drivers of business value

 

2. Protection: Preparing for the “What Ifs”

Every business faces risk. The question is whether you’re prepared.

  • What if a key employee leaves?
  • What if cash flow tightens?
  • What if you can’t continue running the business?

Proper protection planning ensures your business can withstand the unexpected.

 

3. Equity: Turning Success into Wealth

Your business is likely your largest asset—but are you leveraging it effectively?

  • Accessing equity without unnecessary tax burdens
  • Structuring compensation to maximize benefits
  • Building wealth both inside and outside the business

The goal is not just to grow a business—but to create real, usable wealth.

 

4. Transition: Planning Your Exit Before You Need It

Every business owner will eventually leave their business. The only question is how.

  • Will it be on your terms?
  • Will you receive full value?
  • Is your family or team prepared?

A well-designed transition plan ensures you can exit smoothly, efficiently, and profitably—whether that’s through sale, succession, or retirement.

 

A Simple First Step

You don’t need to solve everything today—but you do need to start.

Even a quick self-assessment can reveal where your biggest opportunities lie. Small adjustments in the right areas can lead to significant improvements in both business performance and personal financial outcomes.

Final Thought

Your business should serve your life—not the other way around.

With the right planning, you can move from uncertainty to clarity… from reactive decisions to intentional strategy… and from building a business to building a legacy.

The question is:

Are you ready to start designing your future—on purpose?

Free download report:

Where you are, and where you could be!

https://www.allclients.com/Form3.aspx?Key=E29266E845E39AFF52FA8CF13E04A8F9

tperrone@necgginc.com

 

Performance Management for Small Businesses: 5 Things Every Owner Needs to Know

by YOUR BUSINESS WORTH, posted in Business Growth and Transition, Company Wealth, evaluations, Income from your business, Key People_Or Group, Passive Ownership, Team, Value drivers

From the Building and Protecting Your Business Worth Broadcast | Guest: Ken Somers

By: Thomas J. Perrone, CLU,CIC

Running a small business means wearing every hat — but one role too many owners neglect is that of a true people manager. On a recent episode of the Building and Protecting Your Business Worth Broadcast, hosted by Thomas J. Perrone of New England Consulting Group of Guilford, guest Ken Somers broke down five critical areas where small businesses can’t afford to fall behind.

1. Performance Management Isn’t Just for Big Companies

Even the smallest teams need structure around performance. Without clear expectations, feedback loops, and accountability, small businesses often lose their best people — or keep their worst ones too long. Performance management doesn’t have to be bureaucratic. Done right, it creates clarity, motivation, and a culture where people actually want to show up and do their best work.

2. Management Succession: Plan Before You Have To

Most small business owners have never thought about what happens if they step away — suddenly or by choice. A basic management succession plan doesn’t require an HR department. It starts with identifying who on your team could step up, what gaps exist, and how you’d develop them over time. Waiting until a crisis hits is the most expensive way to learn this lesson.

3. Rising Healthcare Costs? There Are Smarter Options

Medical insurance is one of the fastest-growing costs for small business owners, and many are still using outdated group plan structures. Two alternatives worth exploring: ICHRA (Individual Coverage Health Reimbursement Arrangement) and QSEHRA (Qualified Small Employer HRA). Both allow employers to reimburse employees for individual health insurance, giving owners cost control and employees more flexibility — without the volatility of traditional group premiums.

4. Every Leader Needs a Coach

Small business owners tend to go it alone. But the most effective leaders — at every level — have coaches. Whether it’s a business coach, executive coach, or peer advisory group, outside perspective helps leaders see blind spots, make better decisions faster, and avoid the isolation that comes with being at the top. If you want your leadership team to grow, coaching isn’t a luxury — it’s infrastructure.

5. Culture: Why It Matters More Than You Think

Culture in a small business isn’t a ping-pong table or a mission statement on the wall. It’s the set of unwritten rules that determine how your team behaves when you’re not in the room. A strong culture attracts better talent, reduces turnover, and makes your business more resilient. Ignoring it doesn’t mean you don’t have one — it just means someone else is defining it for you.

Questions or comments from the broadcast? Reach out to Thomas J. Perrone directly at tperrone@necgginc.com. His book, “Unlocking Your Business’ DNA,” is available on Amazon in paperback and Kindle — with profits going to Veteran Groups.

ken@somershrsolutions.com

(508) 507-1207

Buy and Sell Agreement Tutorial

by YOUR BUSINESS WORTH, posted in Business Growth and Transition, Buy and Sell Agreements, Company Wealth, Estate Planning, evaluations, Funding your Buy and Sell, Income from your business, Key People_Or Group, Passive Ownership, retirement, Selling Your Business, Valuation, Value drivers

By: Thomas J. Perrone, CLU,CIC

and Sell arrangements that have emerged since the Connelly case.

The tutorial delves into the rationale behind the utilization of these arrangements and elucidates their advantages.

Furthermore, a comparative analysis of the funding costs associated with different Buy and Sell Agreement structures is presented.

FREE BOOK “UNLOCKING YOUR BUSINESS DNA” FREE DOWNLOAD

https://www.allclients.com/Form3.aspx?Key=4F3D16E276A4EC0C73BFDC182AA06C23

The Process Of Transition In The Mind Of A Business Owner!

by YOUR BUSINESS WORTH, posted in Business Growth and Transition, evaluations, Income from your business, Inside Sale, Key People_Or Group, Passive Ownership

Thomas J. Perrone, CLU, CIC

It’s not easy thinking about the transition of your business! Ask any business owner who has built their business, treated it like a family member, and put all that they had in their “life’s effort”.

It’s a great story with great lessons.

https://podcasts.apple.com/us/podcast/building-and-protecting-your-business-worth/id1539791693?i=1000690360724

Sharpening Your Planning Skills to Get Ready  

by YOUR BUSINESS WORTH, posted in Business Growth and Transition, Buy and Sell Agreements, evaluations, Funding your Buy and Sell, Income from your business, Inside Sale, Passive Ownership, Selling Your Business, Strategies of growing business, Valuation, Value drivers

By Thomas J. Perrone, CLU, CIC

Last month I posted a video on some of the general planning tools you have not used in the past eight years because of the Jobs Act.  That is because of the high limits on the unified estate and gift tax amount.  The high limits sheltered many estate owners and business owners from an estate tax.  With the possible change around the corner it’s time to get ready.   

This month I share how to use some of the tools discussed and why.  Enjoy the video.  

For your free Sunset 2026 Planning Guide, CLICK THIS LINK  

The Guide will automatically download.   

PREPARE FOR 2026 AND GET ENGAGED WITH THE MARKET

Take the Planning Tools Out of the Shed- You’ll Need Them!  

Featured by YOUR BUSINESS WORTH, posted in Business Growth and Transition, Buy and Sell Agreements, Company Wealth, Estate Planning, evaluations, Executive Benefits, Funding your Buy and Sell, Income from your business, Inside Sale, Key People_Or Group, Life Insurance Types, Passive Ownership, retirement, Selling Your Business

Thomas J. Perrone, CLU, CIC

After the 2017 Jobs Act, many of us (estate and business planners), had to shift our planning topics to moderate estate, Medicaid and income tax planning.  

Many of the tools we used prior to the 2017Jobs Act were often used in the planning process, simply because more business owners were affected and exposed to the Federal and State Estate Tax System. Consequently, more sophisticated strategies were needed to shift value, freeze value, or shelter value from the estate.  

Once the Jobs Act came into play, the exemption amounts eliminated many small business owners from the problem of estate taxation.  

However, with part of the Jobs Act heading for Sunset, we may see more businesses becoming exposed to Federal and State estate taxation.  

Time to go to the shed if you want to play in this market.  

This video will help guide you to some of the areas of planning you will have to dust off and rekindle for use.  

Download your Free Business Guide which will help explain many of the topics discussed. Immediate download, CLICK HERE! 

Thomas J. Perrone, CLU, CIC

tperrone@necgginc.com

The Elephant in The Room!  

by YOUR BUSINESS WORTH, posted in Business Growth and Transition, Buy and Sell Agreements, Company Wealth, Estate Planning, evaluations, Executive Benefits, Funding your Buy and Sell, Income from your business, Inside Sale, Passive Ownership

BY: Thomas J. Perrone, CLU,CIC

The elephant in the room is about the four major questions that need to be asked by a business owner and advisors for the business owner to avoid failure of the business. The four major questions are. 

  1. What happens to the business if you die become disabled or want to retire?  
  1. What happens to the business if you lose your key person or key group to competition, or they leave?  
  1. What happens to your business if you have a bad economy and cannot make cash flow to support the business? 
  1.  What happens if you burn out and want to leave the business?  

I cover these four areas in this video.  

The major question:   

How Will the Failure of the Business Affect Your Family!  

Get your Free Business Guide Download. This Free Guide will be invaluable as a quick reference for business planning. Our gift to you. CLICK THIS LINK AND THE REPORT WILL DOWNLOAD IMMEDIATELY!  

https://bit.ly/3hD9U6A