R. Shawn McBride Live

Posts for for May, 2017

You’re Mortal, and an Estate Plan Isn’t Enough

Posted on: May 16th, 2017 by R. Shawn McBride No Comments

We talk a lot about continuity planning at McBride for Business (www.mcbrideforbusiness.com) Are you one of the many people who equate a continuity plan with an estate plan drawn up by a lawyer to transfer your assets to your spouse, children or other heirs if you die or are disabled? Do you believe that covers everything? Are you feeling confident that if something happens to you, your heirs will simply take over the business you’ve worked so hard to build?

I have news for you. If you’re a business owner, an estate plan is not enough.

You need to take it a step farther because your business many not survive an uncoordinated transition. Your employees, your customers and even your vendors may not survive the uncertainty. Relationships are critical to business. Relationships change when something happens to a person who plays a key role in the business — in this case you, the owner. We can think that employees are hired by a business and customers buy from the business and vendors supply the business. In reality, it’s not that simple.

Everyone involved with the business is dealing relationships. They are human beings dealing with other human beings, and they want the stability of knowing that if the relationship works it will continue to work without you. They want to know they don’t have to be afraid or worried. This is where quality continuity planning comes into place. You – as the business owner and the key to management – need to plan so that employees are paid, customers are served and vendors are maintained. In short, you need a plan so the business continues to function.

What are you doing to make certain there’s a plan for your absence? Is your business doing the things it needs for growth without you? Are your employees, customers and vendors confident their relationship with your business will survive if you don’t? You really need to think about it. Simply giving the business to your heirs is insufficient. You need another layer. Involve your management team and your heirs so they know you have taken steps to keep the business running smoothly. Work on it together.

What’s your experience? Have you put continuity plans in place? How are you making sure your business will survive? Join us in the comments below and let us know your thoughts and experiences.

Make sure you download our free checklist to assess your business:  www.mcbrideforbusiness.com/BlogGift

This posting is intended to be a tool to familiarize readers with some of the issues discussed herein. This is not meant to be a comprehensive discussion, and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique. Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer Keigirl.

About the Author

R. Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment (www.rshawnmcbridelive.com/3laws), gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can reach R. Shawn McBride at info@mcbrideforbusiness.com or (214) 418-0258.

Check us out on the web at www.mcbrideforbusiness.com, www.rshawnmcbridelive.com/3laws

Get Shawn’s latest book: www.mcbridebook.com

Add us on Twitter: @McBrideForBus #McbrideForBusiness #3LawsofEmpowerment

Like us on Facebook: https://www.facebook.com/mcbrideforbusiness/?fref=ts

 

Are You Ready For Changing Ownership of Your Company: Learn What To Look For

Posted on: May 15th, 2017 by R. Shawn McBride No Comments

R. Shawn McBride recently spoke about changing ownership of your company. Here is the transcript: https://www.facebook.com/rshawnmcbridepublic/videos/1498225340209367/

 

Folks, Shawn here with you, talking about changing ownership of your company, and this doesn’t matter whether it’s an LLC, or a corporation, although we’re gonna focus probably a little more on the LLC, and what we’re seeing there. But one of the things we need to be realistic about with our companies is we know the ownership is possibly going to change. Now, for single-owner companies, this may be simple. You may not have an ownership change until you want to exit the business. But for other companies with business partners and multiple parties involved, we know that ownership changes part of the game. People are gonna be coming and going. Partners may come and go. We may need to incentivize people to join the company with equity, and all kinds of things are gonna happen along the life of the company to evolve it, and we need to be realistic about ownership change.

So, one of the things we need to talk about is, how does that happen? In a corporation we typically have stocks, so we’ll issue a certain number of shares in the beginning. We need to make sure there’s a sufficient number of authorized shares. These are the shares that we tell the state that we’re gonna issue. We need to make sure there’s enough of them to allow for our growth and our evolution, so we may issue 1,000 shares or 10,000 shares when the company is initially formed, and then if we want to bring other people in, and change the ownership structure, there needs to be enough authorized shares there to give them additional shares, so that we don’t go above that number.

One of the things you want to avoid under corporate law is having more issued shares than the number of authorized shares. A lot of bad things can happen there, just a very simple thing to check the box on legally, if you want to make sure to… in LLCs something interesting comes up. LLCs are creatures of contract, and of course, we’ve talked a lot about the use of internet forms, and some of the problems with them. And one of the things that’s very common with a lot of these internet forms, is they denominate the ownership in percentage interests. And that’s fine if you have one, two, three owners, and everything’s very static, nothing changes. One owner might own 10%, one owner might own 90%, 80, 20, whatever the percentages are, if those percentages are very static, very simple.

But if we’re to have evolving ownership, then we want to use units. I recently did this for a client. We converted them from percentage in interest to units, because they were gonna be changing the ownership percentages as they brought new assets into the company. New assets were coming in. They were gonna issue equity, or units, in exchange for that. By using the units instead of the percentage interest, we’re able to give more units or shares to the new owners, rather than have to reallocate the percentages, and get everybody to agree to that constantly. The management structure can issue those units rather than having to have to amend the LLC group every time. So these are the kind of things you can get ahead of early. Start thinking about using units instead of percentage interest, and practically for most business owners, let’s just be honest, I mean you’ve got a business to run, you’ve got a product to develop, you’ve got commercialization to do.

This is really your lawyer’s issue. But it’s something you wanna keep on the radar, and this is why you want to get a good team behind you, because you want to be looking forward to these issues. These are the kind of things that’d be done early, and easily if you build them in early in your life of your company, if you know where you’re headed. If you wait till later till you have an acquisition pending, or some other major transaction where you try to bring that owner in, you might end up with a lot of negotiation and restructuring, a lot of legal costs, and that’s just not good. So, think ahead about these issues. Start getting ahead of it. And when you do that, you’re gonna avoid the problems before they happen.

So, I hope that’s helpful, I hope that gives you another seed to think about as you’re building your company. Check out our blog, www.mcbrideattorneys.com/blog, or www.mcbrideforbusiness.com/blog. We deal with a lot of these issues, and really love to get you ahead of it. Check out my YouTube channel at McBride for Business, and of course, make sure you’re following the R. Shawn McBride page on Facebook, where we can deliver more great content like this and help you. And I’d love to help you and your audiences with this. Reach out to us, 214-418-0258. Talk to you soon.

Make sure you download our free checklist to assess your business:  www.mcbrideforbusiness.com/BlogGift

This posting is intended to be a tool to familiarize readers with some of the issues discussed herein.  This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique.  Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer Craig Hauger.

 

About the Author

R. Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment (www.rshawnmcbridelive.com/3laws), gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can reach R. Shawn McBride at info@mcbrideforbusiness.com or (214) 418-0258.

 

Check us out on the web at www.mcbrideforbusiness.com, www.rshawnmcbridelive.com/3laws

Get Shawn’s latest book: www.mcbridebook.com

Add us on Twitter: @McBrideForBus #McbrideForBusiness #3LawsofEmpowerment

Like us on Facebook: https://www.facebook.com/mcbrideforbusiness/?fref=ts

 

 

 

 

Is a Partner Only for Dancing?

Posted on: May 15th, 2017 by R. Shawn McBride No Comments

 

May I have this dance? Some people might ask that question only on the dance floor and never in business, but not me. Some people insist business partnerships can’t succeed, but not me. Me? I’ve worked with business partners for many years, so I know a partnership can be an out-of-sync step-on-my-toes mess or, after practice and more practice, a flawless Ginger Rogers and Fred Astaire number.

With the wrong partner, I’ve seen businesses destroyed. I’ve seen disputes take businesses to the ground and all economic value destroyed. I’ve seen partners fight for years over assets and what’s good and what’s bad for business.

With the right partner, I’ve seen businesses thrive and create economic value. Some of my clients say their success has been possible only because they worked in step with partners whose skills and efforts complemented theirs. Great businesses have been built on partnerships.

Many times partnerships let us do more than we could alone. Think of the many 21st century success stories we admire that were founded by partnerships. Google, Microsoft and Apple may lead the list, but it’s a long list. So we know partnerships work. They simply have to be done correctly and be built from the ground up. In prior blogs we’ve explored some of the things that make partnerships successful. (http://www.mcbrideforbusiness.com/blog/picking-your-business-partner-three-critical-things-to-think-about/)

Partnerships aren’t for dancing only. Partnerships can be used very powerfully in many contexts where we can use the help and expertise of somebody else. Use them wisely. Choose carefully. Then dance.

What’s your experience with partnerships? When did you use one? What have you done to protect yourself? I hope you don’t believe partnerships are only for the dance floor. Join us in the comments below and let us know your thoughts and experiences.

Make sure you download our free checklist to assess your business:  www.mcbrideforbusiness.com/BlogGift

This posting is intended to be a tool to familiarize readers with some of the issues discussed herein. This is not meant to be a comprehensive discussion, and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique. Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer John Boyer.

About the Author

R. Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment (www.rshawnmcbridelive.com/3laws), gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can reach R. Shawn McBride at info@mcbrideforbusiness.com or (214) 418-0258.

Check us out on the web at www.mcbrideforbusiness.com, www.rshawnmcbridelive.com/3laws

Get Shawn’s latest book: www.mcbridebook.com

Add us on Twitter: @McBrideForBus #McbrideForBusiness #3LawsofEmpowerment

Like us on Facebook: https://www.facebook.com/mcbrideforbusiness/?fref=ts

Be Ready to Sell: Get More Money Now and in the Future

Posted on: May 12th, 2017 by R. Shawn McBride No Comments

R. Shawn McBride recently spoke about how to get in front of your business and succeed. Here is the transcript: https://www.facebook.com/rshawnmcbridepublic/videos/1498234473541787/

 

Hi folks, Shawn here with you. I want to talk about a very serious topic for business centers. You always want to be ready to sell and how you ramp up the sale, how you get ready to sell. We really want to be managing this process all along.

The reason you always want to be ready to sell is that you don’t know what’s going to happen, right. We talk in business partnerships about the four Ds, death, disability, divorce, disagreement. All these things are unfortunate things that happen all too often and upset business partnerships but they can also happen in a single-owner companies, so we want to be prepared in case one of these events happens.

Furthermore, we might get a third-party offer at an unexpected time. Maybe somebody just happens to be doing rollups in your industry, they just happen to be looking for companies like yours and you want to get ahead of it. Well if your company’s ready to sell, you are in a great position. If you’re not ready to sell, you may waste time getting ready to sell and by the time you’re ready, the opportunity may have already passed because many acquirers are impatient, they’re ready to go, they want to close a transaction. If you’re sitting there getting your house in order, you’re losing time and energy. So we really want to do things right from the beginning.

How do we ramp a company up for sale? How do we get it ready? Number one, great books and records and I talk about this in my book Business Blunders, www.mcbridebook.com, one of the checklist items that I always say to do is have great books and records. Having books and records in order, ready to go in case an acquirer shows up, you really want to be ready to show them your best foot and say this is who we are. You also want to understand your business. Have the customer list ready to go, have your expenses, know your balance sheet, know your income statement, all of this stuff is fundamental to being ready for an acquisition.

Having all your contracts in order on standardized form in the most updated version, right, you may be changing a contract over time and you will be updating it as you go to make sure you’re ready to go. You want a strong management structure that is not dependent on any one person. This is one of the things that an acquirer is gonna look at, is how much is the business and absolutely and necessarily need the owner there, and if it falls apart without the owner there, you’re gonna have a hard time selling it for a good value you see, you want to get ahead of this, by making sure that you have multiple people involved in your management.

These are all very, very simple things to do along the way and if you have your ducks in a row as you’re running your business, you’re gonna maximize your chances of selling for a good price. If you waited until the last minute, you’re gonna have a problem, and they’ll be some cleanup and some other stuff you can do at a manage sale if you know a sales coming three to five years ahead, there’s even better opportunities with a startup. Managing your expenses, looking at how the income statement looks, managing capital expenses, doing a lot of great things that really make a company more valuable three to five years but regardless you need to be prepared to sell regardless of where you are in your structure because you just don’t know what’s gonna happen.

A lot of great things you can do, so work with somebody that you trust, find somebody that knows this stuff, they can come in and advise you, it’s really gonna payoff at the end, whether you sell in the short term you get that unexpected offer or whether you sell 10 years from now. Getting your house in order and doing the things you need to do now to sell will not only add tremendous value in the event that you do get that offer but I guarantee you, the same types of things are the types of things that are gonna help you run your business better, be more efficient and make more money.

So the time to do it is now, to get ahead of things. Don’t wait, get ahead of it, start talking to somebody you trust. If you want more information about this, check us out www.mcbrideforbusiness.com/blog we talk about this frequently. I would love to come in and talk to you or your groups and organizations, I can either do it as a speaker or for training or for a keynote, or we can sit down really one on one, whatever is best for you, let me know, we’d love to talk to you about what you’re facing and how to help you ramp your company up for sale as soon as possible, Shawn McBride and I know I’ll be talking to you soon. Like our Facebook page, R. Shawn McBride public and you can subscribe to our YouTube channel McBride For Business.

Make sure you download our free checklist to assess your business:  www.mcbrideforbusiness.com/BlogGift

This posting is intended to be a tool to familiarize readers with some of the issues discussed herein.  This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique.  Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer Manuel De La Pene.

 

About the Author

R. Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment (www.rshawnmcbridelive.com/3laws), gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can reach R. Shawn McBride at info@mcbrideforbusiness.com or (214) 418-0258.

 

Check us out on the web at www.mcbrideforbusiness.com, www.rshawnmcbridelive.com/3laws

Get Shawn’s latest book: www.mcbridebook.com

Add us on Twitter: @McBrideForBus #McbrideForBusiness #3LawsofEmpowerment

Like us on Facebook: https://www.facebook.com/mcbrideforbusiness/?fref=ts

 

 

 

 

Know Your Priorities and Stick with Them

Posted on: May 12th, 2017 by R. Shawn McBride No Comments

In a previous blog, I discussed how the ways we spend our time and our money reflect our priorities. (http://www.mcbrideforbusiness.com/blog/seven-steps-to-prepare-for-a-better-business-future/)We also get insight that way into what others put first. Similarly, it’s a way for me to keep my priorities straight. It’s important that we know ourselves and what we value. Our decision-making will be easier if we clearly know what’s important to us.

As many of you know, my businesses are very important to me. It’s important to me to spread the message of successful planning and doing what’s needed for businesses to stand the test of time. It underlies the tenets of all my presentations, (www.rshawnmcbridelive.com/presentations), and it’s foundational to the way I want to help others. But I have other priorities in life too. I have my parents. I have my close friends. I have things that I hold dear — experiences, trips, history lessons, and historical items and collections that I love and value. I need to balance them with my business.

Recently, I had the opportunity to attend a conference that looked really good. Many people I knew were going, and there would have been a lot of great educational opportunities. But the timing conflicted with a family event that I had planned and enjoy every year. So, I had to balance the tensions, and I chose to put my parents and my family first, ahead of my career. That’s not always the case. Some weeks, some months, I choose to put my career first. I choose to put helping others ahead of other priorities, and that is okay.

The key is we all need to know our priorities. We need to know how we rank things and we need to know where we draw the line. Situations are rarely perfect, and we often need to make hard decisions. But if we have our priorities, making those hard decisions becomes a lot easier because we have a framework. We want to think about our priorities in life. What do we want to do? What are we okay with letting go? How do we balance the two?

What’s been your experience with this? Have you had situations where you’ve had to juggle priorities? What have you used to help you make the decisions of what to do and what not to do? Join us in the comments below and let us know your thoughts and experience.

 

Make sure you download our free checklist to assess your business:  www.mcbrideforbusiness.com/BlogGift

This posting is intended to be a tool to familiarize readers with some of the issues discussed herein. This is not meant to be a comprehensive discussion, and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique. Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer Matthias Gelinski.

About the Author

R. Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment (www.rshawnmcbridelive.com/3laws), gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can reach R. Shawn McBride at info@mcbrideforbusiness.com or (214) 418-0258.

Check us out on the web at www.mcbrideforbusiness.com, www.rshawnmcbridelive.com/3laws

Get Shawn’s latest book: www.mcbridebook.com

Add us on Twitter: @McBrideForBus #McbrideForBusiness #3LawsofEmpowerment

Like us on Facebook: https://www.facebook.com/mcbrideforbusiness/?fref=ts

Are You Asking Enough Questions

Posted on: May 11th, 2017 by R. Shawn McBride No Comments

R. Shawn McBride recently spoke about digging deeper and asking more questions.

Here is the transcript: https://www.facebook.com/rshawnmcbridepublic/videos/1492171797481388/

 

Hey, folks, R. Shawn McBride here with you live asking a tough question, which is are you asking enough questions. It’s been an interesting week, some good things, some bad things, always things evolving in the business. But one theme that came out as I talked to other people, as I saw a lot of situations evolve this week, what I found is a lot of times people aren’t asking enough questions. They’re not getting to the bottom of what needs to be done. So, if you’re in a service position like myself, it means asking a lot of questions about what the client expects, what they need to see, what they want. And if you’re in a product based business, what do they expect from the product, will they be met.

We’re in a world where a lot of times we think that people know what they want. But we’re also in a world with a lack of communication. People are not communicating enough with each other. So we need to ask more questions and really build relationships. People do business with those they know, like and trust, right? We’ve heard this again and again and again. Who do you know, who do you like, and who do you trust. Part of this trust factor is understanding each other. We really need to spend some time to get to know what the other person’s needs are, what their demands are, and what they wanna accomplish.

The challenge for you this week is to ask more questions. Go at least one or two layers deeper than what you think. Confirm something in a conversation. Ask somebody to follow up on something. I think you’re gonna be impressed with the results here and I think it’s gonna make a difference. So, I’m challenging you to meet with other people, for the next couple of weeks ask two additional questions in every meeting you have when you’re working with a client or a customer. Ask two more questions, go a little deeper, get a little more understanding. And let me know what the results are. I’d love for you to report back to me what happens when you ask a couple more questions and what it does for you and your business. I think you can have tremendous results.

People tell me that they’ve had improved sales and deeper conversations, and built longer term relationships just by asking a couple more questions. I wanna hear about your results, so write me back, let me know. What challenges are you facing? What issues do you have in your business? Let me know, I would love to talk to you, I’d love to get some content out there for you or come work with you and your group. So reach out to me, R. Shawn McBride. Check out our blog at www.mcbrideforbusiness and I hope to talk to you again soon.

Make sure you download our free checklist to assess your business:  www.mcbrideforbusiness.com/BlogGift

This posting is intended to be a tool to familiarize readers with some of the issues discussed herein.  This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique.  Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer Sigurd Decroos.

 

About the Author

R. Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment (www.rshawnmcbridelive.com/3laws), gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can reach R. Shawn McBride at info@mcbrideforbusiness.com or (214) 418-0258.

 

Check us out on the web at www.mcbrideforbusiness.com, www.rshawnmcbridelive.com/3laws

Get Shawn’s latest book: www.mcbridebook.com

Add us on Twitter: @McBrideForBus #McbrideForBusiness #3LawsofEmpowerment

Like us on Facebook: https://www.facebook.com/mcbrideforbusiness/?fref=ts

 

 

 

 

Time, Money and Our Priorities

Posted on: May 11th, 2017 by R. Shawn McBride No Comments

Many people rave about Alan Weiss (https://www.alanweiss.com/) and his business consulting services. I was not so familiar with Alan, but I have to say I was impressed when I recently saw his presentation.  He has some great ideas about the organization of business and how things work.

One of the points Alan makes is that time and money are simply expressions of priorities. You’ll hear people say, “I don’t have the time,” or, “I don’t have the money.” They are expressing their priorities. They probably have time and they probably have money — they’re just allocating it somewhere else. They have other priorities.

For instance, let’s say you offer sales training. A business tells you, “We don’t have the money for sales training.” While the business probably has sales people and other events, it’s simply not allocating money for the type of training you offer. It’s not a priority for them. It’s the same with time. We all are given 24 hours a day. We all are given the same number of days in a month and the same number of days in a year. We all essentially have the same amount of time. We each have to figure out how to allocate our time.

I think it’s very clarifying to reflect on the fact that time and money are just expressions of priority. There’s nothing right or wrong, but when others say they don’t have the time or the money for something, what they’re truly saying is that something isn’t a priority. That gives you the ability to learn about them, their priorities and needs, and why they’re not allocating the time or money to something. It’s a very helpful rubric for thinking about how we interact with others.

What’s your experience? Have you talked to others about trading time and money? Have you ever thought about the fact that time and money are just really a way of showing priorities? Join us in the comments below and let us know your thoughts and experience.

 

Make sure you download our free checklist to assess your business:  www.mcbrideforbusiness.com/BlogGift

This posting is intended to be a tool to familiarize readers with some of the issues discussed herein. This is not meant to be a comprehensive discussion, and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique. Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer Debbie Schiel.

About the Author

R. Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment (www.rshawnmcbridelive.com/3laws), gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can reach R. Shawn McBride at info@mcbrideforbusiness.com or (214) 418-0258.

Check us out on the web at www.mcbrideforbusiness.com, www.rshawnmcbridelive.com/3laws

Get Shawn’s latest book: www.mcbridebook.com

Add us on Twitter: @McBrideForBus #McbrideForBusiness #3LawsofEmpowerment

Like us on Facebook: https://www.facebook.com/mcbrideforbusiness/?fref=ts

Time to Review Your Buy/Sell

Posted on: May 10th, 2017 by R. Shawn McBride No Comments

R. Shawn McBride recently spoke about updating your Buy/Sell agreement. Here is the transcript: https://www.facebook.com/rshawnmcbridepublic/videos/1493498577348710/

Hey folks, R. Shawn McBride with you here live, and I’m gonna talk about an important issue we’re seeing today, which is, it’s probably time to update your Buy/Sell agreement. So many times when people come to me with an issue, they have not updated their Buy/Sell. They haven’t done the work to go back and revisit it – so, the Buy/Sell you put in when you started your company . . .  usually there’s two major issues.

Number one, it was done quickly in haste, because you were just trying to get the company up and running. You were trying to get out of the box, get proof of concept, build your customer base, and you didn’t stop to really work through the Buy/Sell.

The second issue is the passage of time, businesses change, the partnership has changed, people have evolved, you’ve understood more about what your business looks like, maybe your business model has changed.

So, for either of these reasons, your Buy/Sell that you’re sitting on today, in many cases, probably is out of date. I see it all the time when partnership disputes come up – people come to me, we go back to their Buy/Sell, they don’t understand what it says.  They don’t understand how it works, or it just doesn’t fit the current situation, the assets aren’t valued correctly, it just doesn’t work. So we’re going to need to dissect it and update it, so, if you’re a business owner, if you’re resting assured, saying, I’ve got a Buy/Sell, I don’t have to worry about a partnership issue because I’ve already done the hard work, time to stop and revisit things. Do you really have a great agreement in place? Are you really ready to move forward? So, we want to look at that. Very easy to do, pull the thing out of the drawer, look at your LLC agreement, your partnership documents, your corporate documents, whatever the case might be, as a totality, and see how the pieces are fitting together. Does it make sense?

This is great, and one advantage you have, as a business owner, when you’re looking at your Buy/Sell, is you are generally not a lawyer, so you don’t have that clouded eyes, you can read that Buy/Sell, and if it makes sense to you, then your Buy/Sell is probably a good Buy/Sell. If you read the Buy/Sell and you don’t understand what it says, guess what? Jury’s probably not gonna understand it, and a judge may not understand it, so you want to get it updated.

And you want to read it and make sure it makes sense, does the Buy/Sell you have now make sense in light of where your business is? A lot of issues possibly there.

Now, this week I’m gonna do a series, we’re gonna visit again and again about Buy/Sells, and we’re gonna look at different pieces of them, so stay tuned. Tune to my page, make sure you like this page if you haven’t, so you get the updates, look in every day, I’ll be posting updates and ideas on things you can do to update your Buy/Sells, so let’s get this done, let’s help our businesses, let’s build ’em for the future, let’s make sure we have a solid foundation with a good Buy/Sell because, if you’re doing all this work to build the business and something goes wrong, you’ve got a problem. R. Shawn McBride, see you again soon, look for my series this coming week, talk to you soon.

Make sure you download our free checklist to assess your business:  www.mcbrideforbusiness.com/BlogGift

This posting is intended to be a tool to familiarize readers with some of the issues discussed herein.  This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique.  Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer Odan Jaeger.

 

About the Author

R. Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment (www.rshawnmcbridelive.com/3laws), gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can reach R. Shawn McBride at info@mcbrideforbusiness.com or (214) 418-0258.

 

Check us out on the web at www.mcbrideforbusiness.com, www.rshawnmcbridelive.com/3laws

Get Shawn’s latest book: www.mcbridebook.com

Add us on Twitter: @McBrideForBus #McbrideForBusiness #3LawsofEmpowerment

Like us on Facebook: https://www.facebook.com/mcbrideforbusiness/?fref=ts

 

 

 

 

The “What Can I Do for You?” Philosophy

Posted on: May 10th, 2017 by R. Shawn McBride No Comments

Many of us believe that to be business leaders, part of our job is to serve. We are servant leaders, serving our customers and other business owners. That’s one of the reasons you’ll often hear me ask, “What can I do for you?”

I sincerely want to get to know other business owners. I want to know how I can help them. I’m all about creating win-win scenarios. I want to introduce Business Owner A to Business Owner B, have them connect, and see how they can do more together.

It’s really a philosophy born of “What can I do for you?” Much as I would approach my customers, I want to know what I can do for other businesses. Sure, I have standard products and offerings. I have certain presentations that I present again and again and again, (www.rshawnmcbridelive.com/presentations). At McBride for Business, we have services we offer on a repetitive basis. But I also want to know our customers’ needs, how I can customize things for them, and help them build more.

This is a great philosophy I adhere to for customers, peers, colleagues, and other business owners. I encourage you to think in these terms. As you’re growing your business and working with others, how can you help them? What can you do for them? Ask! Figure out what their needs are, then ask, “How can I help you get to what you need?” Sometimes what may be difficult for another person may be easy for you. Then you’ve created a win-win situation. You’ve helped somebody. You put some good into the community. And I guarantee if you put enough good in the community, good will come back to you.

What’s your philosophy? Have you been working on creating win-win situations? How have you helped others? Join us in the comments below and let us know your thoughts and experiences.

Make sure you download our free checklist to assess your business:  www.mcbrideforbusiness.com/BlogGift

This posting is intended to be a tool to familiarize readers with some of the issues discussed herein. This is not meant to be a comprehensive discussion, and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique. Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer Karl-Erik Bennion.

About the Author

R. Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment (www.rshawnmcbridelive.com/3laws), gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can reach R. Shawn McBride at info@mcbrideforbusiness.com or (214) 418-0258.

Check us out on the web at www.mcbrideforbusiness.com, www.rshawnmcbridelive.com/3laws

Get Shawn’s latest book: www.mcbridebook.com

Add us on Twitter: @McBrideForBus #McbrideForBusiness #3LawsofEmpowerment

Like us on Facebook: https://www.facebook.com/mcbrideforbusiness/?fref=ts

 

Tax Time Bombs: Residence, Domicile and Why You Need to Care

Posted on: May 9th, 2017 by R. Shawn McBride No Comments

 

R. Shawn McBride recently spoke about the difference between residence and domicile. Here is the transcript: https://www.facebook.com/rshawnmcbridepublic/videos/1470800639618504/

 

Good morning, folks. R. Shawn McBride with you here, live, talking about tax time bombs and why you need to care. Recently, coming up in a conversation about, “What state do you want to incorporate? What state do you want to live in?” The issue came up about residence and domicile. All of you know that my world is about planning, making companies that stand the test of time, building companies that really help the business owners fulfill their lives and their dreams. Sometimes part of that is planning and executing, minimizing your state income taxes, and locating where you really want to be.

The residence and domicile issue always sits there at service. What is the difference between residence and domicile? Many people informally use these words similarly. People don’t just tend to distinguish them. Your domicile is your true home where you intend to return to. It is essentially where your home base is. When you set up a domicile – that is where you’re going to return to. It’s your long-term home. Then you can have residences, which are places where you’re present, and that you have connection to. You can only have one tax domicile, but you can have multiple residences. This is what causes a lot of confusion. People get confused about that.

You possibly could be a resident in more than one state, and liable to pay state residency taxes in that state. And to add on top of it, if you don’t extinguish your domicile, you could still owe taxes to another state which you’re domiciled in. You could be residing in state A, and have your domicile – intend to return to state B, and you would owe taxes to both state A and B. There are some tax credits that offset this income so you don’t get completely double-whammed in most cases, but you’re paying a lot of taxes, so you want to be very careful about this.

Your domicile is your true home where you intend to return to, so you want to be careful about how you structure that, how you set that up. Your residence is the place where you’re spending time, you’re spending connecting with. The two of these are different concepts, and if you’re going to change your domicile, you need to do so very carefully. A lot of states tests out there about what it means to change your domicile, where your domicile is, and they’re looking at what actions you’ve taken to show your real intent to reside in a particular location, and where you intend to remain. They’re looking at a lot of factors here. Where your car is registered. Where are you spending your time? Where are your social connections? Where are you going to church? Where are your friends? Where are your significant amount of assets? Many, many tests on domicile.

Point being, if you want to change your domicile, make sure you break a connection with a state and you no longer owe them state income taxes. You want to very carefully extinguish your domicile. Your residence is a different question. That’s often about keeping a place in a state, and physical presence, amount of time you spend there. There are two different tests, and you want to be very careful you understand both, because a lot of people get caught on this. They do not distinguish their domicile. They change their residence. By changing their residence, they’ve exposed themselves to taxation in a new state. But if they don’t extinguish the domicile, they still may owe taxes to the original state, so you want to be very careful about how you interplay all this.

Hope that’s helpful, folks. Hope that helps you execute some of your plans and start thinking about what you want to do in the future, particularly if you’re thinking about moving yourself or your business, you’re going to be thinking carefully about these issues. Let me know if I can help you with anything. Love to join you and your groups and help you execute your plans and talk about how to make plans that really work, The Three Laws of Empowerment. If you have a group or an audience that’s looking for that type of message, please reach out to me.

Make sure you like the R. Shawn McBride public fan page. Spread the word. Let your friends know that we’re here to help, and let me know how I can help you. Feel free to send me private comments and emails, and we’ll talk soon. R. Shawn McBride, signing off.

Make sure you download our free checklist to assess your business:  www.mcbrideforbusiness.com/BlogGift

This posting is intended to be a tool to familiarize readers with some of the issues discussed herein.  This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique.  Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer Ulrik De Wachter.

 

About the Author

R. Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment (www.rshawnmcbridelive.com/3laws), gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can reach R. Shawn McBride at info@mcbrideforbusiness.com or (214) 418-0258.

 

Check us out on the web at www.mcbrideforbusiness.com, www.rshawnmcbridelive.com/3laws

Get Shawn’s latest book: www.mcbridebook.com

Add us on Twitter: @McBrideForBus #McbrideForBusiness #3LawsofEmpowerment

Like us on Facebook: https://www.facebook.com/mcbrideforbusiness/?fref=ts

 

 

 

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