Linda Jensen discusses mitigating risks: understanding the five D’s of exit planning.
Listen to the interview on the Business Innovators Radio Network: https://businessinnovatorsradio.com/interview-with-linda-jensen-principal-and-owner-of-heart-financial-group-discussing-the-5-ds-of-exit-planning/
Planning for the five D’s of exit planning is crucial for business owners, as highlighted in the podcast episode. The five D’s include distress, disagreement, disability, divorce, and death. These events are inevitable and can have a significant impact on a business if not properly planned for.
Distress in the business can arise from various situations such as supplier issues, lawsuits, data breaches, or natural disasters. Without a plan in place, these distress points can lead to business interruption, loss of customers, and financial strain.
Disagreement among partners or within the business can escalate quickly and affect morale, productivity, and quality of work. Having a buy-sell agreement funded and clearly defined roles for employees can help mitigate disagreements and their negative consequences.
Disability whether due to health issues or accidents, can disrupt the business if key individuals are unable to work. Planning for disability insurance, power of attorney, and succession plans is essential to ensure the business can continue to operate smoothly in such circumstances.
Divorce among business partners can create additional challenges, impacting not only the business but also employee loyalty, morale, and operational efficiency. Having prenuptial or postnuptial agreements in place can help address the division of assets and roles within the business in case of a divorce.
Death of a business owner can lead to a sudden drop in the business’s value and expertise. Succession planning, buy-sell agreements, and estate planning are crucial to ensure the business can continue to thrive even in the absence of the owner.
Overall, planning for the five D’s of exit planning is essential for business owners to safeguard their businesses against unforeseen events and ensure continuity in operations. By proactively addressing these potential challenges, business owners can protect their investments, assets, and the future of their businesses.
Linda explained: “A lot of people have created a job for themselves. They don’t have a business that can run with or without them. That can be a tremendous risk. You want to make sure that you have contingency plans. In the event of a partnership and a potential death, you need an up-to-date buy-sell agreement that’s funded. And if, God forbid, you were to die, you want to be sure that your estate plan is in order. We are all about helping our business clients navigate the risks of retirement.”
About Linda Jensen
Linda has been self-employed for her entire life. A successful financial advisor since 1994, she has enjoyed all aspects of entrepreneurship, especially problem-solving, sizing up dilemmas, and working through complexities with creative solutions. She is a lifelong learner. In addition, she has a passion for establishing a good rapport with business owners and clients helping them access a wide range of resources. “Business owners are in a lonely place,” says Linda. “I want to develop a relationship with the business owner, offer counseling and serve as a referral service.” Linda began her career in 1994 with Prudential Preferred Financial Services; for three years Linda was an agency leader in Tacoma, Washington.
Since starting her firm in 1997, Linda has enjoyed working with individuals and business owners helping them achieve their financial dreams and goals. She is an expert in all aspects of retirement planning.
Linda has lectured widely on financial topics to both the general public and business professionals. She is passionate about helping business owners leverage corporate cash to create benefits for the owner(s), key employee(s) and to identify estate-planning solutions.
Linda calls the Pacific Northwest home. She married her college sweetheart. She and her husband Brad have two children and five grandchildren. Linda loves learning, reading, hiking, sewing, and cooking.
Learn More:
https://www.heartfinancialgroup.com/
https://www.LowerYourTaxesToday.com
Recent news and interviews:
- Linda Jensen Discussing Exit Planning:
- Linda Jensen Discussing Exit Planning Tax Mitigation:
Investment advisory services are offered through WealthWatch Advisors, an SEC registered investment advisor. Wealth Watch Advisors and Heart Financial Group are independent of one another. Please note that the registration with the SEC does not guarantee the success of investment advice.
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