There’s one question many small business owners ask themselves everyday: “What is the true value of my business?”

It’s an important question because, whether you realize it or not, the value of your business will have a big impact on both personal and professional aspects of your life. So, knowing the answer is vitally important.

The second quarter delivered positive returns for investors across almost all major asset classes. Global equities have continued to make new highs, led by the Artificial Intelligence (AI) revolution in the U.S. While consumer and business sentiment has sunk lower throughout the quarter, the narrative for stocks and bonds has been hard to describe as anything but optimistic.

The fundamental supports have all held in:

• The economy is growing.

• Corporate earnings are strong.

• The U.S. labor market is creating still-plentiful jobs.

• Household wealth continues to reach new records.

June marked the seventh winning month out of the past eight for the S&P 500, bringing year-to-date total returns to approximately 15 percent. There are now officially three U.S companies with equity market capitalizations over $3 trillion. Without question, it’s a bull market, but the probability of something going awry is rising. Specifically, signs are mounting for the Fed that restrictive monetary policy is influencing the economy, consumer spending is slowing, and concerns are rising over the political environment as the presidential election approaches.

When it comes time to sell or transfer your business, what is the best way for you to do it? You have several options at your disposal, from giving it away, to going public, to doing nothing. Each comes with its own rewards, and pitfalls, that you should take into account as you develop your business succession and estate plans.

Employee retention is critical to a healthy, well-functioning business. That’s because employee turnover costs you — in terms of money, productivity and morale.

So how do you hang on to the good employees? Sure, there are some things that as employers you can’t control. But you have a larger influence than you may think.

The Supreme Court recently ruled that life insurance proceeds received by a corporation to cover the repurchase of the deceased shareholder’s stock interest must be included in the value of the corporation for federal estate tax purposes. Those proceeds are not offset by the corporation’s obligation to repurchase the deceased shareholder’s stock.

Issues arise when business owners don’t face the fact that one day they won’t be around to run their business. While many owners have their children’s best interests in mind, their intentions and visions don’t always necessarily align with the reality as seen through the next generation’s eyes. A lot of it has to do with transparency, reasonableness, communication, and a willingness to compromise for the future success of the business and the continued harmony in the family.

You have built your business with the hopes that it will withstand the test of time. Unfortunately, there are a lot of elements out of your control that can affect the success of your business such as death or disability. It is possible to plan for these contingencies and ensure that both your business and the well-being of your family are able to survive an unforeseen event.

One day you’ll sell your business or transfer it to the next generation. You have a succession plan, so you have a good idea who will be eventually taking over, when the planned sale or transition will take place, and how much money you will have after the deal closes.

Regardless of when you plan to sell the business and to whom, it’s important to put a strategy into place now, for how you will manage the proceeds from the sale. This is especially important when the sale of the business is the culmination of a career, and the beginning of your retirement.

Here’s an interesting juxtaposition: According to the 2022 MassMutual Business Owner Perspectives Study, the top goal for business owners upon exiting their business is to maintain their current standard of living in retirement; yet, transitioning ownership when the business owner is ready to retire is ranked last in terms of importance and priority.

What might be the explanation for this? It could be because:

— Nearly half of the business owners we surveyed either plan to work in their business beyond 10 years from now or they have no idea when they plan to retire.

— Two-thirds are waiting for the right buyer to come along.

— Most say it will be an almost even split between funding retirement with both the business and the assets outside the business.

Businesses go through several stages. When they reach the growth stage, they may require additional financing above and beyond what the owner has saved or what friends and family can offer. These improvements may include increasing inventory, retooling existing or purchasing new equipment, expanding the building, or developing a new market.

In fact, a recent Forbes Advisor survey sought to identify how business owners used funds from their business loans. The most common use of the funds was for business expansion, with 42 percent selecting this option. Equipment purchases came in second, cited by 29 percent of respondents, followed closely by marketing and advertising, business franchising, and commercial real estate purchases/remodeling.

Despite stalling progress on inflation and a rebound in interest rates, the U.S. stock market has reached new highs in 2024, driven by a robust economic backdrop, strong corporate earnings, and investor optimism.

With news headlines focused on short-term outcomes especially for 2024, we emphasize the importance of a long-term perspective and focus on fundamentals. The first quarter went well in many respects, yet we remain cognizant of risks and potential surprises to the consensus view.

As Mike Tyson once famously said, “Everyone has a plan till they get punched in the mouth.” The recent market volatility is a stern reminder for retirees of just how important it is to have a plan. It is also a reminder that when it comes to retirement income planning specifically, timing is everything, which is why it is important to understand what financial professionals refer to as “sequence risk” or “sequence of returns risk.”

As you develop a plan for your eventual exit from the business, it is important to consider those risks that may impede your ability to step away when you are ready and limit the value you hope to receive from the business. With proper preparedness, you can exit the business on your terms, no matter when that time comes.

Imagine if a key employee were to become seriously sick or disabled. Maybe it’s your top salesperson or an employee who has been with you since the beginning. In addition to the potential impact to your business, the financial impact to that employee’s family and loved ones could be devastating. In a scenario like this, you might choose to continue paying that employee’s salary while they recover.

However, doing so is not quite as simple as you may think. The IRS will not consider the salary you pay while your employee is ill or injured to be a “wage,” since they are not actually working. This means you can’t deduct the wages from your company’s taxes or claim them as a business expense.

As a business owner, you know what it means to be the boss, from managing employees, to winning new business, to paying the bills. But these aren’t the only things you’re in charge of. You’re also the boss when it comes to your personal financial plans for retirement. And if eventually selling your business (or your shares, if the business if jointly owned) is part of your retirement plan, you’ll need a good handle on what your business is worth at any given time.

Whenever I talk about the importance of properly funding buy-sell agreements and succession plans for businesses, I always think back to the “rental car” episode of Seinfeld.

Business owners and their advisors are good at putting resources toward drafting agreements, but it’s the funding of those agreements that is the most important part. And that’s often where the process breaks down.

In today's dynamic landscape, several emerging trends are shaping the way businesses operate and make strategic decisions. These factors have far-reaching drivers and related implications, influencing everything from financial management to talent development.

Gone are the days when an employer simply offers a 'one-size-fits-all' benefits package.

Most U.S. equity indices more than erased their 2022 slides. The S&P 500 returned 26 percent on the year and the NASDAQ returned a whopping 45 percent, its best year since 1999 as continued economic momentum and an artificial-intelligence frenzy drove technology shares to outsized gains.

An outstanding year for asset returns came despite intensified geopolitical and political uncertainty.

This article will illustrate how standard deduction and marginal tax bracket changes might affect your income, tell you how to maximize your retirement savings in 2024 and show how some proactive tax planning can help you save more money.