Family business owners face wealth evaporation daily. It’s like glaucoma. You can’t tell it’s happening on a daily basis, but the cumulative results can be costly.
Many years ago – before the internet – I was in the business of publishing weekly newspapers and shopping guides. It was a business that included advertising sales, ad layouts and graphic design, production and composition, printing and distribution, and (of course) all the financial disciplines of managing cash flow and credit lines.
I mention this simply to point out that I know the challenges the owners of closely-held businesses face… and also to point out that there are some common mistakes many such owners have in common.
It was during this period I remember reading an interview with Jack Nicklaus, who was then at the top of his game and was THE golfer that “moved the needle”, as they even said back then. It was in that interview he pointed out one of the biggest mistakes he made had to do with his approach to cash management, pointing out just how costly his mistakes were – until he corrected them.
I learned from that article and it made a huge difference in my life. That article, however, didn’t provide much detail; it was, after all, a golf magazine and didn’t have a financial focus.
Santa Barbara-based business expert George Issac, however, has written an excellent piece, entitled, Avoiding the Family Business Wealth Evaporation Trap. If you own a family business, you just might find this information highly valuable.
I recommend it highly; and you can get your own copy when you subscribe to my ezine – If you decide later you don’t want the ezine, you can unsubscribe immediately with a single click. By the way, IFG never shares your email address with anyone.
I recommend this piece by George Issac. I think you’ll be happy you read it.
Jim Lorenzen is a CERTIFIED FINANCIAL PLANNER® professional and An Accredited Investment Fiduciary® serving private clients since 1991. Jim is Founding Principal of The Independent Financial Group, a registered investment advisor with clients located across the U.S.. He is also licensed for insurance as an independent agent under California license 0C00742. The Independent Financial Group does not provide legal or tax advice and nothing contained herein should be construed as securities or investment advice, nor an opinion regarding the appropriateness of any investment to the individual reader. The general information provided should not be acted upon without obtaining specific legal, tax, and investment advice from an appropriate licensed professional.