Make your long story short and sweet
ridays at the bank always felt like full moons. Maybe it stemmed from the old payday lineups we would get at the teller wicket or the unspoken panic that our not-longago cash society started to feel when the banks would close like clockwork at 3, right around the time the boss handed you your paycheque.
That was cute.
But the commercial banking floor never really had a teller lineup and still managed to be hectic. In my case, with several midsized construction companies in my portfolio, I often got a calls from some Podunk bank branch in Projectland. Some guy was in the branch with a paycheque from one of my clients, but he didn’t have any ID. Fortunately, earlier in the day his boss had called his boss’s boss who called me to say I should expect a call from Podunk to cash a paycheque for a guy with no ID. He was missing his left pinky and one ear was sewn on backwards (long story). Easy enough to identify, even without standard documentation. The cheque was made out to Dave – Citizen of the Universe. I’ve got a nephew like that in Montana. (Also a long story).
Retaining top talent: Analyse the potential business consequences of losing your most talented employees. To retain them, get to know them, reward them, keep them challenged and engaged, foster a team environment, offer them growth opportunities and competitive pay. Treat them as well or better than you treat your equipment. Downtime in both cases is too expensive.
Discombobulation, in the financial sense, is common, even among very successful business owners. It’s a mismatch big ideas, a sort of tragic flaw.Example: It quickly becomes obvious that attracting talent to this region can be a challenge, especially if Vancouver or Alberta are booming. Our businesses get pretty good at finding the right sort of soul who thrives here, and at the right price. On the other hand, these skillful, frugal business owners don’t always translate that same skill in seeking out the right accounting or legal firm to help them deal with the sophisticated world they’ve built. You don’t transport your peach harvest on a logging truck.
Consult the appropriate advisors: This step is crucial to ensuring your estate plan is done right. If you’ve made a good go of your business, you’re going to need some sophisticated professionals. Make sure you find those who specialize in estate planning. Think of it this way, would you go to your family physician if you required brain surgery? The family doctor is highly trained, but not a neurosurgeon. Why should your nest egg be any different? Questions for your estate advisors:
• What degrees or relevant designations do you hold?
• How long have you specialized in estate planning?
• Have you implemented estate plans of similar complexity to my own? Explain.
• Is there any charge for an initial consultation?
• Do I have the option of an hourly fee or a flat rate for your services?
Don’t skimp: You may have considered the accountant or lawyer an afterthought through the years, and might not have always taken all of their advice. But this is different. You have maybe a dozen or so hours of complex decision making to work through in order to make the last 40 years worthwhile.
— Mark Ryan is an investment advisor with RBC Dominion Securities Inc. (Member–Canadian Investor Protection Fund), and these are Mark’s views, and not those of RBC Dominion Securities. This article is for information purposes only. Please consult with a professional advisor before taking any action based on information in this article. See Mark’s website at: http://dir. rbcinvestments.com/mark.ryan