Three components of business wealth |
Screen 3 of Circle Talk for Business Owners: There are three important areas about your business I would like to discuss with you today. The first, which gets the most focus, is the value of your business. This represents the dollar amount that your business is currently worth if you were to consider selling it. The second type of money we call your Lifestyle money which represents the dollars that you are spending to maintain your current standard of living. Lifestyle money can be broken down into three smaller categories which are: A: Expenses and benefits you enjoy because you are the business owner. B: Money you take from the business to save or invest outside your business. C: Your remaining lifestyle is that amount left over after taxes for consumption. This brings us to the third discussion, which is the Expense Lost to operate your business. Expense Lost is not only the money you are forced to spend which is simply the cost of doing business but also money you could be losing unknowingly and unnecessarily. Obviously if you knew where the losses were occurring you would have already solved those issues. Many advisors have ideas of where you should invest the money your business is generating but when it comes right down to it there is no better place to invest your money than in your own company simply because it is something you know and something you can control to some degree. The money your company generates is investment return. We believe there is more opportunity to positively impact your business financially by helping you avoid expense losses than helping you pick better investment opportunities. Screen 12 of Circle Talk for Business Owners: Where would you like to begin our initial focus in working together? We could focus on the money you are currently investing outside your business, secondly we could focus on your lifestyle by helping you reducing your present standard of living so you could save more, or third we could focus on your expense losses and recapture money you are currently losing unknowingly and unnecessarily. Let me take just a few minutes to give you some idea of the kind of money we are talking about. |
No math presented on this screen. |