Category: Uncategorized

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  

 

 

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

by YOUR BUSINESS WORTH, posted in Business Growth and Transition, Company Wealth, evaluations, Uncategorized

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

A Four-Pillar Framework for Turning Business Success into Lasting Personal Wealth

By Thomas J. Perrone, CLU, CIC | tperrone@necgginc.com

Executive Summary

Most small business owners don’t lack ambition — they work hard, grow steadily, and reinvest everything back into the company. Yet many reach a point where an uncomfortable question surfaces: is the business growing by design, or simply by default? While revenue climbs, critical areas such as financial planning, risk protection, tax efficiency, and long-term transition are frequently overlooked, not from a lack of care but from a lack of time, clarity, or structure.

This white paper summarizes a structured planning approach — often referred to as a “Destiny Plan” — that aligns a business with its owner’s ideal life and financial future. Rather than adding complexity, the framework organizes the essential drivers of long-term success and security into four pillars: Growth, Protection, Equity, and Transition.

The Hidden Gaps in Growing Businesses

Business owners are often aware, sometimes painfully so, that critical elements of their business are being neglected. Common gaps 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 convert business success into personal financial security

Left unaddressed, these gaps mean that even an outwardly successful business can remain financially fragile.

The Questions Every Business Owner Should Ask

A useful starting point is self-assessment. Consider the following:

  • 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?

Difficulty answering any of these is a signal, not a source of alarm: it indicates that planning is overdue, and that the owner is far from alone in facing this gap.

The Four-Pillar Framework

What most business owners need isn’t more complexity — it’s clarity. A structured approach brings together the key elements that drive long-term success and security into one cohesive strategy, built on four essential pillars.

1. Growth: Building with Purpose

Growth should be intentional, not accidental.

  • Implementing systems that scale with the business
  • 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 the business can withstand the unexpected.

3. Equity: Turning Success into Wealth

Your business is likely your largest asset — 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 — it’s 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 enables an exit that is smooth, efficient, and profitable — whether through sale, succession, or retirement.

A Simple First Step

Owners don’t need to solve everything today — but they do need to start. Even a quick self-assessment can reveal where the biggest opportunities lie. Small adjustments in the right areas can lead to significant improvements in both business performance and personal financial outcomes.

Conclusion

A business should serve its owner’s life, not the other way around. With the right planning, an owner can move from uncertainty to clarity, from reactive decisions to intentional strategy, and from simply building a business to building a lasting legacy. The core question remains: are you ready to start designing your future — on purpose?

TAKE THE FREE BUSINESS OWNER 3 MINUTE SURVEY: With this survey we will send you a report of where you are in your planning today vs. the areas you should revisit to maximize your planning we call this the “Where You Are, and Where You Could Be!” DOWNLOAD

Download your free “Growing Your Business Guide With GWT PLANNING SYSTEM® Download

Also, if you would like to discuss your current situation, I would be happy to help you with a discussion, feel free to contact me: MY Calendar

Youtube:  The Business Owners Who Plan vs. Everyone Else: Luck or Design

Thomas J. Perrone, CLU, CIC | tperrone@necgginc.com

Why So Many Business Owners Outgrow Their 401(k)—But Never Build the Retirement They Deserve

by YOUR BUSINESS WORTH, posted in Business Growth and Transition, Company Wealth, Estate Planning, evaluations, Uncategorized

By Thomas J. Perrone, CLU, CIC

If you’ve built a successful business, you’ve already accomplished something most people never will.

You’ve taken risks, created jobs, served customers, and built something of real value.

Yet there’s one question that quietly follows many successful business owners throughout their careers:

“Will my business be enough to fund my retirement?”

For many owners, the uncomfortable answer is, “I hope so.”

The Hidden Retirement Problem

Business owners think differently than employees. When extra cash is available, it usually goes right back into the business.

  • Hiring another employee.
  • Purchasing equipment.
  • Expanding operations.
  • Investing in marketing.
  • Solving the next challenge.

The business always seems to come first.

Over time, something surprising happens. The business becomes the retirement plan.

On paper, many owners appear wealthy because most of their net worth is tied up inside their company. But when it’s time to retire, they discover they haven’t created enough wealth outside of the business to support the lifestyle they’ve worked so hard to achieve.

That’s a risky position to be in.

Your Business Is an Asset—Not a Retirement Plan

Many owners assume they’ll simply sell the business one day and retire comfortably.

Unfortunately, life doesn’t always cooperate.

Markets change. Buyers disappear. Industries evolve. Health issues arise. Family circumstances shift.

A business that looks valuable today may not sell for what you expect tomorrow.

Even if it does sell, taxes, transaction costs, and changing market conditions can significantly reduce the amount you actually keep.

Putting your entire retirement future on one asset—even one you built yourself—is concentration risk.

The wealthiest business owners understand that retirement security comes from diversification, not hope.

Cash Flow Is the Real Challenge

Most owners don’t ignore retirement because they don’t care.

They ignore it because cash flow always seems to demand attention somewhere else.

There is payroll to meet.

Taxes to pay.

Inventory to purchase.

Unexpected expenses.

Growth opportunities.

Retirement planning becomes something they’ll “get to next year.”

Then next year becomes five years.

Five years becomes ten.

Before long, retirement is much closer than anyone expected.

Clarity Changes Everything

The biggest obstacle isn’t a lack of income.

It’s a lack of clarity.

Most business owners have never been shown a strategy that allows them to continue investing in their business while intentionally creating personal retirement wealth outside of it.

Once they understand how to redirect cash flow efficiently, retirement planning becomes less about sacrifice and more about strategy.

That’s when real confidence begins.

Introducing the GWT System

Our firm developed the GWT System® (Grow Wealth Transition) because we repeatedly saw successful business owners facing the same challenge.

They were building exceptional businesses—but not building enough personal retirement wealth.

The GWT System is designed to help business owners:

  • Create a clear retirement roadmap.
  • Build wealth outside the business.
  • Use tax-efficient executive compensation strategies.
  • Reduce dependence on selling the business for retirement.
  • Gain confidence that their personal financial future is as strong as the company they’ve built.

The goal isn’t to replace your business.

The goal is to ensure your business supports your retirement instead of becoming your only retirement plan.

You Deserve More Than Hope

You didn’t build your business by hoping things would work out.

You built it with planning, discipline, and smart decisions.

Your retirement deserves the same attention.

Imagine reaching retirement knowing your lifestyle doesn’t depend on the timing of a business sale or the state of the economy.

Imagine knowing your personal wealth is growing alongside your business.

Imagine having choices instead of uncertainty.

That’s what financial clarity creates.

The Next Step

If you’ve spent years building your business, now is the time to begin building the retirement you’ve earned.

The earlier you create a strategy, the more options you have.

The GWT System helps business owners turn today’s success into tomorrow’s financial independence—so retirement becomes a destination you can look forward to with confidence, not uncertainty.

Because after a lifetime of building your business, you deserve a retirement built with the same level of purpose.

Download the Free Report: “Building Retirement Wealth Through Your Business” 

Landing page for the building retirement wealth through your business. 

New England Consulting Group of Guilford, Inc.

tperrone@necgginc.com

http://www.bpbpgrp.com/tom

The Human Side of Succession!

by YOUR BUSINESS WORTH, posted in Uncategorized

By Ken Somers

The Human Side Of Succession!

Last month May 25, 2026,  I wrote about Estate Equalization:  “ A Guide for Business Succession”. 

As a continuation of this topic, I would like to include a great article in audio form by my friend  Ken Somers from

The Somers HR SOLUTIONS Group 

The article  called “The Human Side of Succession”  is in audio form.   Ken hits on all cylinders in the discussion of estate equalization and succession. 

This is a wonderful perspective on business succession and the dynamics within the family business.  

Feel free to contact Ken for a hard copy of his paper, or to speak to him about the topic. 

linkedin.com/in/kensomers

somershrsolutions.com

ken@somershrsolutions.com

Listen  to Ken’s message:  Also, you can download the audio file

Transferring_power_in_family-run_businesses Ken Somers_copy.mp3

Thomas J. Perrone, CLU, CIC

tperrone@necgginc.com

www.bpbpgrp.com/tom

Estate Equalization: A Guide for Business Succession

by YOUR BUSINESS WORTH, posted in Buy and Sell Agreements, Company Wealth, Estate Planning, One Big Beautiful Bill, Selling Your Business, Tax Efficient, Transfer Costs, Uncategorized

By: Thomas J. Perrone, CLU,CIC

For many business owners, the company is far more than an asset. It represents decades of sacrifice, relationships, risk, and identity. In closely held businesses, the company often makes up the majority of the owner’s net worth. That creates a major challenge when it comes time to transfer wealth to the next generation.

The question becomes simple — but emotionally complicated:

How do you treat all heirs fairly when the primary asset cannot easily be divided?

This is where estate equalization becomes one of the most important strategies in succession planning.

The Problem With “Equal” Ownership

Many business owners instinctively believe that leaving equal ownership shares to children is the fairest decision. Unfortunately, equal ownership often creates unequal problems.

Consider a common scenario:

  • One child has worked in the business for years and plans to continue running it.
  • Another child has built a separate career and has no involvement in the company.

On paper, dividing ownership equally may seem fair. In reality, both heirs usually view the business very differently.

The active heir often sees:

  • Legacy
  • Responsibility
  • Long-term opportunity
  • Commitment to employees and customers

The inactive heir may see:

  • An illiquid asset
  • Lack of control
  • Financial uncertainty
  • A desire for liquidity or income

Neither perspective is wrong. The problem is that these goals frequently conflict.

Without proper planning, family businesses often experience tension immediately after the owner’s death.

Three Common Problems Families Face

  1. Conflict Over Control

Inactive heirs may inherit voting rights or ownership interests in a company they do not understand or participate in. Meanwhile, the active heir is trying to run daily operations and make business decisions.

This can create disagreements over:

  • Compensation
  • Business strategy
  • Distributions
  • Hiring decisions
  • Growth investments

At the exact moment when stable leadership is needed, the business becomes vulnerable to family conflict.

  1. Operational Disruption

Co-ownership between heirs with different goals can slow decision-making and weaken the company.

One heir may want to reinvest profits into growth. Another may want cash distributions. One may focus on long-term value, while another wants immediate liquidity.

Over time, these disagreements can damage both relationships and business performance.

  1. Forced Sale of the Business

This is one of the most dangerous outcomes.

If inactive heirs want to cash out their ownership, the active heir may not have the financial ability to buy them out. As a result, the family may be forced to:

  • Sell the company
  • Bring in outside investors
  • Borrow heavily
  • Liquidate assets

Many successful family businesses are sold not because the company failed, but because the estate plan failed.

What Estate Equalization Really Means

Estate equalization is the process of distributing assets so heirs receive equitable value, even if they do not inherit identical assets.

The key principle is this:

Equal does not always mean identical.

The child running the business may inherit the company itself, while other heirs receive different assets of comparable value.

Those assets might include:

  • Life insurance proceeds
  • Investment accounts
  • Real estate
  • Retirement assets
  • Other liquid investments

The goal is to preserve both:

  • Family harmony
  • Business continuity

A Simple Example

Imagine a business worth $4 million and two children.

Without Estate Equalization

Both children inherit 50% ownership.

The active child wants to continue operating the business. The inactive child wants access to the value of their ownership.

The result is often:

  • Conflict
  • Financial pressure
  • Potential sale of the company

With Estate Equalization

The active child inherits 100% ownership of the business.

The inactive child receives equivalent value through life insurance or other estate assets.

  • The business remains intact
  • Leadership remains stable
  • Both heirs receive fair value
  • Family tension is significantly reduced

The Role of Life Insurance

Life insurance is often one of the most effective tools for estate equalization.

Why?

Because it creates liquidity exactly when the family needs it most — at death.

A properly structured life insurance policy can:

  • Provide immediate cash to non-business heirs
  • Avoid forcing a business sale
  • Help equalize inheritances
  • Reduce estate settlement pressure

In many cases, life insurance proceeds can also be received income-tax-free.

Some families also use trusts, such as an Irrevocable Life Insurance Trust (ILIT), to help manage estate tax exposure and control distributions.

The Importance of Business Valuation

An estate equalization strategy starts with understanding the true value of the business.

Business owners should regularly obtain professional valuations and review:

  • Business value
  • Real estate holdings
  • Investment accounts
  • Retirement plans
  • Existing insurance
  • Estate tax exposure

As businesses grow, the original plan may no longer reflect reality.

A plan created five years ago may be significantly outdated today.

A Real-World Family Dynamic

Consider two brothers.

One spent his life inside the family business. He started young, learned operations, developed relationships with employees, and planned to carry the company forward.

The other became a teacher and built a completely separate life and career outside the business.

Both sons loved their father. But they viewed the company through entirely different lenses.

To the active son, the company represented:

  • Identity
  • Legacy
  • Responsibility
  • Future growth

To the inactive son, it represented:

  • Wealth tied up in an illiquid asset
  • Limited control
  • Potential family conflict
  • Financial uncertainty

The challenge was not greed or selfishness. The challenge was perspective.

Many family business conflicts happen because heirs are trying to assign the same meaning to an asset that represents very different things to each person.

Communication Matters

Even the best technical planning can fail without communication.

Family meetings, governance structures, buy-sell agreements, and clearly defined expectations are critical to long-term success.

Business owners often avoid these conversations because they are uncomfortable. But silence usually creates more problems later.

Clear communication can help families:

  • Understand expectations
  • Reduce misunderstandings
  • Clarify roles
  • Preserve relationships
  • Protect the business

Why Timing Matters

Estate planning opportunities can change quickly due to:

  • Tax law changes
  • Business growth
  • Health concerns
  • Economic conditions

The best time to create a succession and equalization strategy is while the business owner is healthy, involved, and able to make thoughtful decisions.

Waiting too long often limits available options.

Final Thoughts

Family business succession planning is not simply about dividing assets. It is about balancing fairness, control, liquidity, and long-term family relationships.

When business owners focus only on “equal” distribution, they can unintentionally create conflict that damages both the company and the family.

Estate equalization offers a better approach:

  • Preserve the business
  • Protect family harmony
  • Provide fair treatment to all heirs
  • Create clarity for the next generation

A successful succession plan is not just about transferring wealth. It is about preserving the legacy the business owner spent a lifetime building.

Download you free report:

Estate Equalization

Linkedin

www.bpbpgrp.com

tperrone@necgginc.com

The Current Employee Isn’t your Dad’s Employee!  

by YOUR BUSINESS WORTH, posted in Uncategorized

Thomas J. Perrone, CLU,CIC

Relationships with employees have changed over the years, and professionals in the Human Resource field have had to change as the times have.   

Today’s broadcast covers 10 poignant questions about dealing with the ever-changing profile of employees and what it takes to create a strong business culture.   

Our guest Bob Moran discusses a wide range of  situations in business and how smaller companies can adjust to these changes.  

Proactive Positive Employee Relations, LLC 

Robert Moran 

74 Limewood Ave Branford, CT 06405

203 918 8947

Moranrw1@yahoo.com

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

ONE BIG BEAUTIFUL BILL AND How To Use Some Of The Strategies That Have Come Out Of The Bill.  

by YOUR BUSINESS WORTH, posted in Uncategorized

Thomas J. Perrone, CLU, CIC

Ed Pratesi, the Managing Director of Valuation & Transition Strategies, LLC. I help business owners and their advisors achieve a stress-free process to learn the value of their business, how to increase its value, and the development & execution of a transition strategy or strategies. 

Enhanced expense deduction capability – be careful how you execute – too much of a good thing can leave you cash poor and a tax liability 

QSBS – liberalizing the rules allows C 
corporation business owners to potentially shield 100% of their capital gains on sale. 

– This present gifting scenarios to sort of spread the wealth – couple the prospect of valuation discounts and you have a winner 

With the gift tax exemption rises to $15M 

under the Bill – family wealth planning with SLAT’s and other vehicles are enhanced with valuation discounts. Eepratesi@gmail.com  

JOHN SALEMI. John Salemi: OFFICE MANAGING PARTNER, UHY FARMINGTON CT; has thirty years of professional experience, with a specialization in tax issues and management consulting. John can draw upon his practical financial background in addressing the many managerial problems confronting business owners in today’s complex economic and regulatory environment.Jsalemi@uhy-us.com  

R&D Credits /Depreciation changes /Interest deductions – Section 163(j) 

TOM PERRONE Founder and President of New England Consulting Group of Guilford, Inc.  Estate and Business planning, and Executive Compensation. tperrone@necgginc.com  

•Grantor Trust 

•Non-Grantor Trust (SALT) 

•Decanting OF Trusts for IDIT – SWIPE PROPERTY 

•Cash Flow and Executive Benefits 

listen to the podcast…

https://podcasts.apple.com/us/podcast/building-and-protecting-your-business-worth/id1539791693?i=1000736782334

QUESTIONS TO tperrone@necgginc.com

An Insurance LLC

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, Inside Sale, Passive Ownership, Strategies of growing business, Uncategorized

By Thomas J. Perrone, CLU, CIC

An Insurance LLC is a limited liability company (LLC) created to own and manage one or more life insurance policies to help meet the obligations under a buy-sell agreement. The Insurance LLC is a new business entity formed under local law, separate and apart from the business or businesses that are subject to the primary buy-sell obligations.  Since the Connelly ruling, Advisors are looking for ways to provide a funding arrangement for buy and sell agreements and the Insurance LLC is another way of providing for the buy and sell arrangements.  

GET YOUR FREE eBook, “Unlocking Your Business DNA”. My published book discussing 50+ years of strategies used to Protect, Create Wealth, Grow business, and Transition the business. Great strategies for advisor and business owner- yours free.

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

For Business Owners_ Where You Are?  

by YOUR BUSINESS WORTH, posted in Uncategorized

By : Thomas J. Perrone, CLU, CIC

Have you ever thought about how effective you are in your Business and Estate Planning? 

When I ask business owners how comfortable did, they feel about the current level of estate and business planning up to this point, most of them replied favorably.   However, when I asked them, a few questions related to planning, they didn’t feel so comfortable in the current planning they have done.  

Why does this happen?  It’s like if I asked you how your health is, and you would say, “great”, only because you are not aware of any issues.  However, if I asked you the same question, but only after I did a CT scan, you might not be as confident in your answer since you don’t know how the CT scan worked out.  

The Viewpoint helps business owners have more clarity in their planning and simplicity in the path to that planning.  This video is revealing and helpful in finding the right path of planning.  

LEARN MY BUSINESS STRATEGIES, used for over 50 years in my published book, “Unlocking Your Business DNA”. THIS book will give you great ideas of how to work with business owners, their team. It will change the way you work and help you increase your production in the business market. This book is FREE- DOWNLOAD NOW.

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

FOR a Kindle or paperback order on Amazon. All profits go to veteran groups.

The CEEP GOLDEN HANDCUFF 401K ENHANCER! 

by YOUR BUSINESS WORTH, posted in Uncategorized

BY: Thomas J. Perrone, CLU, CIC

Here is a benefit that is a win-win for the key person and the employer.   

What it does! 

  • Provides a great Pre-Retirement Benefit for the Key Person – assuring a completion of the 401k/403b plan  FOR FAMILY SECURITY
  • Protects the Employer from losing the cost to provide the benefit if the key person leaves prior to their agreement 
  • Provides the Key Person a great benefit should they fulfill their agreement with the Employer  
  • Completes the purpose of the Key Man Golden Handcuff benefits 

Enjoy a free copy of my published book, “Unlocking Your Business DNA”, 50+ YEARS of great strategies to help business owners grow and protect their business.  

Download Your FREE e-Book