Archives for December 2016

The 2016 version of why it is time for an annual “checkup” for you and your company

Over the past few years many of you probably read my blog regarding having a checkup for you and your business. This does not involve the doctor, but it does involve all the other professionals in your personal and business life. Since that time, I decided to make this topic an annual tradition. This is based in part on the range of feedback I receive every year.

Some of you said “What a great idea. I am definitely going to do that.” Other said “Sounds like a good idea, maybe I will look into that.” Most of you were busy with the holidays and all that it entails, and probably ignored my advice. To be honest, any of these responses is okay and ignoring my advice may not have had detrimental effects to you or your business.

The point of the advice is that you only know what you know. If you do not check in with your professionals and, for example, make sure contracts or your estate plan remain enforceable and up-to-date, that is where the risk comes in. For example, I always check in with my accountant at the end of the year to ensure that all is right with taxes, i.e. to find out whether my wife and I need to send the IRS a check before the end of the year.

This year I had a reminder related to a different item you should check in on annually, auto insurance. My wife and I added a teenager to our auto insurance. Yes, yes, I knew it was going to have a significant impact on our premiums. And it did. Luckily, before I could call to ask my insurance person to shop the policy around on rates for policies with similar coverage, he did so and we already have switched insurers.

With the time constraints of life, it is sometimes hard for me to move beyond the higher-level checkup, but when I do I usually end up with some benefit. Unfortunately, in our time-crunched world, the question of who to check in with at year end is expansive, from your estate planning attorney, to your investment person, to your insurance person, to vendors you may use such as a yard or pool maintenance company, or your cell phone carrier or your Internet provider. You may be surprised what a company will do in lowering monthly costs to satisfy a current or longtime customer. Try it and see what happens.

I know, I know, who has the time? None of us do, which is why the choices yours. Are your contracts up to date? Did you pay enough estimated taxes or withholding? Are you paying the cleaning service at your office or your lawn service for your home too much? The choice of what professionals to consult, what costs to check or compare and what services to put out to bid is yours. Choose wisely!

And for those of you seeking a reminder or who did not see it in years past, here is my original blog post on getting an annual checkup:

The end of the year is always a good time to take stock of where you are personally and professionally. This can be checking in with your personal accountant to make sure you have withheld/paid enough taxes during the year or planning for deductions to planning for large corporate expenditures on things such as upcoming projects, planned corporate initiatives or planned equipment purchases. But the one thing that is a constant is that we all should be doing this.

In the past I have mentioned why it is good to sit down with various professionals you or your company work with just to check-in, be they attorneys, accountants, insurance professionals, financial planners, investment professionals, etc. The list depends on you and your business.

This does not have to be a formal appointment unless you think that is appropriate depending on the nature of the planned conversation. Instead, it can be you offering to buy them lunch or a drink. The point is the better the professionals you work with know you, the more they are able to make recommendations aimed to benefit you or your company.

So don’t wait, start making plans today to meet with these people this year, or at least first thing next year. We all are busy this time of year, but if you take these actions it will help you now and in the future.

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You are known by the company you keep

The people you associate with help determine your future. They matter when people think of you. We all know people who have a business partner or spouse most people don’t like or merely tolerate. If that is you are you self-aware enough to know, to admit it to yourself? If so, what keeps you with that person that regularly turns off others? And, yes, I understand emotional, mental or financial pain may be the reason.

That is why the choice on the front end is so important. Choosing who to work with or start a business with is as important as picking a spouse or partner, and vice-versa. Don’t be blinded by flash; substance matters in the long run. These types of choices are the biggest in life because they affect so much in your world. That is why choosing who is in your orbit should matter so much to you. If it doesn’t, it will show to others, color how they think of you and likely negatively affect your opportunities.

And I know people can change, but, think about it, changing into the person others do not want to be around doesn’t happen overnight. You are much better off choosing wisely at the beginning. If you do, the greater chance you have to avoid a painful split in the future, let alone the effect that person can have on your reputation. And business divorce is as painful and messy as a divorce from a spouse.

So keep good company and choose those who will matter and figure prominently in your professional and personal life carefully.

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Seek out and heed advice

You can go it alone, but why? We all need help and guidance. You need to have people to go to with questions, to bounce ideas off of and to sound out ideas. It may be a mentor, a friend, a co-worker, well you get the idea. The key is to have one or more people who you trust to advise you and who you will listen to and consider what they say.

You are thinking that is obvious. But is it? Think about who this may be in your life. Do they advise you and take positions that don’t always agree with you? Because that is who you want. You want someone who is honest with you and tells you what they really think.

And while I indicate to heed that advice, maybe the better instruction is to listen well, consider the advice and then decide how to proceed. That is why you need to seek out advice from people you trust, will listen to, respect. Sometimes this means speaking with more than one person to obtain different perspectives on the same idea or issue.

If you do not have these people in your life, start by finding one. Look to your friends and acquaintances, competitors, professionals. Who you should be seeking out depends on you and your needs. But if you find one or more of these people it will help you work through thoughts, ideas, issues, etc. better.

Give it a try and you will see!

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