Impact of Tax When Selling a Business

What is the impact of tax when selling a business? Most small business owners spend a lot of time wrestling with the decision about when they will put their business on the market and try to sell it. There is no question that selling a business is an important decision for its owner as it touches many aspects of their life. These aspects of their life include their financial security, their perception of how successful the business has been or alternatively, has the owner taken the business as far as they can take it. However, probably the most important aspect of all is what the owner wishes to do with their future and whether or not they see themselves owning and operating the business.

All of the above and many more reasons take time to consider arriving at the right answers. If the owner no longer sees themselves owning and operating the business and wish to sell, there is an important need to consider the tax implications if they sell the business. The tax implications happen at two levels. The first level is the tax consequences preparing the business for sale. The second level is the impact on taxes when the business moves from the current owner to the buyer. If you are considering selling your business, here are some tax consequences to consider as you contemplate whether or not you will sell the business.

Understand the differences between a Stock sale and an Asset sale. Buyers generally prefer an Asset sale as it eliminates legal liabilities and allows the buyer to start depreciating assets all over again.

Consider maximizing the amount of charitable contributions to closely held business interests

Consider receiving some of the purchase price of the business in installments such as through payment of a salary, a management agreement or a consulting agreement, This allows the seller of the business to receive income when they stop working in the business and therefore no income tax for wages or salaries.

The tax benefits of an installment sale. An installment sale allows the seller to be paid some of the proceeds from the sale of the business to later years thereby spreading out or deferring to future years the tax liability the income would generate.

An additional strategy with the last suggestion is to increase the rate of interest the seller is paid on the installment sale once again deferring to future years the tax liability.

Understand that the value the business sells for revolves around the discretionary earnings of the business so all cash that flows through the business is reported, non business discretionary items are no longer run through the business and any unusual one off occurrences are clearly documented so a buyer can see they are not a normal part of the way the business operates. For example, the business may have a settlement with an employee that involves a one-time payment or the owner may be going through a divorce and paying the attorney fees through the business. These one-off events reduce the profitability of the business but the appraiser should not consider these when they appraise the business.

The tax treatment for different types of legal entities is not the same. A sole proprietor, LLC or partnership will have much different tax outcomes to a corporation. The tax treatment may be entirely different for an S Corporation than a C Corporation. If the owner of the business wishes to maximize their tax position it requires an appropriate amount of planning and guidance.

Because the tax impact from selling or buying a business is complex and can create tension in the transaction, a company that specializes in business exit tax strategies to help both buyers and sellers is Walker Advisory Services in Texas. Walker Advisory Services can work directly with you to offer their tax planning suggestions or in conjunction with your CPA or tax agent. Their specialization of tax planning strategies exposes them to this difficult area of tax law and uniquely positions them to support the nuances that relate to the selling of a business or buying of a business.

Andrew is a 5-time business owner that helps entrepreneurs exit or enter business ownership. His services include helping owners sell and/or buyers purchase an existing business or consult on purchasing a franchise. He also provides certified machinery and equipment appraisals and business valuations.

Andrew currently holds the Certified Business Intermediary (CBI) designation from the International Business Brokers Association (IBBA), the highest credential awarded by the IBBA and the Certified Business Broker (CBB) designation from the California Association of Business Brokers. He also holds a Brokers License with the California Department of Real Estate, is a member of the Sacramento Metro Chamber of Commerce and the Chair of the Sacramento Chapter of the California Association of Business Brokers.

Home Business: Your Chance To Work In Your Jammies!

Although most people do have the aptitude and the ability to work, not everyone is cut out for taking orders and climbing out of bed at the crack of dawn every morning. This is just one of the many reasons why millions of people attempt to start home businesses every year. Read up on these home business tips.

Find out if local groups, such as a church or business association, offer group insurance and, if they do, join up! It's a great way to save money on your insurance while getting peace of mind from the fact that you're fully covered in case something happens to you or your family.

Stay far, far away from people that hand out negativity. Every negative person has his reasons for being that way, but it's his problem, not yours. Don't let these people steal your dreams, motivation or confidence away. Realize that negative people are that way with everyone they encounter; don't take it personally, just move on and find more people that support your efforts.

In order to be successful in terms of having a home business, it is very important that you like to do what you are doing. With that said, it is a common thing to choose a product or company that matches your interests. Like any other thing, choosing something you like will make you do the job better.

Arrange to have a toll free 800 number associated with your home business. Taking this step allows you to keep your personal information private. If your business is successful, having an 800 number also leaves your home number free to take calls from your friends and family, who might have difficulty getting through otherwise.

Be prepared when meeting with a loan officer. When applying for a home business loan, make sure you are well-prepared. Have a solid business plan, and a long-term cash projection. Talk about your home business with confidence, and be prepared to honestly answer any questions. Most importantly, don't lie about your loan application.

Don't blindly copy the advice of gurus. What worked for them may not work for you. Make your decisions from first principal and learn from experience. Experience is more important than anything someone who's apparently wiser than you can say. Learning firsthand, and often through a system of trial and error, gives you true know-how.

Establish a daily routine when running your home business to keep on track and motivated. One of the benefits of a home business is the flexibility it gives you in scheduling. However, creating a daily routine with time allocated to running your business increases the likelihood your business will be successful. Otherwise, it is too easy to get distracted by other demands and lose focus on your business.

Develop a description for your home business that can explain what it is that you do in less than three sentences. If you have to spend a good bit of time explaining what it is that you do, you may not have the plan that you need to have to succeed.

Determine your goals. Find out what you are most interested in, and base your goals on that. If your goals match the type of business, you are entering into, you are much more likely to be successful. If they do not, you may need to choose a different type of business to get involved in.

Expectations can be low for home businesses, so it is up to you to make sure that you overdeliver on every product or service that you sell. Think of bonuses and extra ways to show appreciation for the person who is paying you. They will remember and use you, the next time they need to order something. Better yet, they may recommend you to friends.

Before you begin a home business, you need to develop a business plan that maps out the course of your business, including your financial expectations. You should be willing to spend some time writing this out because if you need investment partners, they will expect you to have adequately researched your business and have the ability to present your ideas well.

To get more business from the Internet, the domain name that you choose is important. You want to pick a name that has meaning. It will help others remember it more, and your customer's won't have to do a lot of searching on the Internet to find your business site.

Checks

Go to the bank and open an account for your business. Do not use your personal bank account. This will help you keep track of your expenses and income. Your customers will be able to write checks or wire money to a business account, which helps them trust you and your business.

When you first start a home business it's a great idea to talk to someone at your bank who is knowledgeable about business accounting and finances. They will be able to help you start a business bank account, get cheap personal checks with your business name on it, and even apply for a business line of credit or credit card.

Join local charity drives to get your company's name out to the masses. Companies can bring over-sized checks, pledge a few thousand dollars, and get massive media coverage for their business. People will notice charitable companies.

Hire your family members for your business. They are around anyways so they can help you easily. Write up a job description for them and write them a company check at each pay period. This way you can save money and you can also deduct their checks as business expenses.

If you'd rather call the shots and make all the rules, then these tips might just help you to create a successful and long-lasting home business. Now that you have learned these tips; however, the onus is on you to apply them where necessary in order to make them work. If you can do that, you can be successful.

Selling Your Business: Important Issues for Sellers to Know

If you want to sell your business, or if you are at least thinking about it, you will have a lot of important things to consider. What is my asking price? How do I market to prospects? Do I need professional assistance? Without possibly covering all of the matters a seller must contemplate, this article discusses some of the basic issues any seller of a small business in Florida (or elsewhere) should consider prior to taking it to the market. The following are some key questions that you, as a seller, should ask yourself:

Who is the legal owner of my business? It's almost a silly question, but let us not overlook it. Your business almost certainly has assets. When we say assets, we are talking about equipment, inventory, trade fixtures, customer-client base, accounts receivables, etc: all of the things which you use to run your enterprise. Most small businesses are sole proprietorships, S Corporations, or LLC's. If you are operating as a sole proprietorship, then you own the assets in your individual capacity. If you run your enterprise as an S Corporation or LLC, the entity is the owner of the assets and so the entity itself, not you individually, would constitute the "seller" of the business.

How will my business be sold? Selling can be accomplished in one of two ways: The assets can be sold and transferred from the selling party to the acquiring party, i.e., the buyer. In simple terms, this is called an "asset sale". Alternatively, the buyer can purchase the stock or ownership interest of the existing business from the seller. In the second case, the entity (i.e., corporation or LLC) which owns the assets will continue to exist, but will have a new owner. In simple terms, this is called a "stock sale". Most small businesses are purchased as an asset sale, not as a stock sale. In other words, the buyer/new owner will purchase the existing assets of the seller's business and then run it under a different and separate entity.

What should be my asking price? In order to answer this question, you should attempt to first figure out the value of your business. A method commonly used to value small business is the discretionary earnings method. This method requires evaluating the seller's Profit and Loss Statement, by locating items or expenses which are not necessary to the enterprise, and then recasting the Statement to ascertain the "real" cash flow or earnings of the business. The recasting process involves adjusting or "adding back" the seller's expenses which are not crucial to the business, or which the buyer, as the new owner, would not likely incur himself. Once this recasting process is done, the "value" is then determined by multiplying the seller's net earnings by a multiplier. This is not an exact science, but the method at least helps the seller get an idea of the price range of his business.

As an illustration, if you determine, after recasting the seller's Profit and Loss Statement, that the seller's discretionary cash flow or earnings is $100,000, the next step is to multiply that number by a multiplier. Each industry will likely have its own multiplier, but a commonly used benchmark multiplier is around 2.0. So, if you multiplied 2.0 times the seller's reconstructed net earnings, you will get $200,000. Thus, the rough value of the hypothetical business would be $200,000. You should note: the discretionary earnings method is by no means the only way to determine the value of a small business. There are other methodologies. If you think you need professional assistance in valuing your business, you should seek the assistance of an accountant or a business broker.

How do I market the sale of my enterprise? You will obviously need to market to prospective buyers. Marketing can be accomplished through a variety of avenues and media. You can start with people who work in your type of business. A competitor, for example, might be interested in buying. You can also try traditional print advertising in your local newspaper. If you are in a recognized industry, there may also be trade or industry journals in which you can advertise the sale of your business. Another option is to obtain professional assistance of a business broker. Typically, the business broker would "list" it for sale on the internet (and through other outlets) just like a real estate broker would list a home for sale. A business broker typically charges a 10% commission for his or her services. If you're interested in seeking the assistance of a business broker, you should find out about their services, what type of businesses they have sold, what is their commission rate, and how they will go about the marketing process. You should also ask if the broker is a member of the Business Brokers of Florida. While no reputable business broker can honestly guarantee results, he or she can be an invaluable source of assistance.

Online Business Ideas For Starting Your Own Internet Empire

Planning to own an internet business totally requires accurate details involving proper usage of fixed assets and decision making. A number of businessmen claim initiating an internet business is pretty tough. Then again, if a person is well-equipped with information pertaining to his internet business, procedures would be uncomplicated. If one is planning to start up his own online business, recognizing online business ideas is incredibly important. Apparently, an individual couldn't easily establish his business if he doesn't know what business he decides to have. As there is a great deal of online business ideas that a person could engage in, it's a must to cautiously pick what truly suits his abilities and skills. For more information, one could simply utilize the subsequent online business strategy and ideas in building one's own internet empire.

Internet retailing of products & services

Such business idea is a way to build one's own internet empire. Essentially, it needs site creation enabling a person to give relevant details & support for the product or service that he's trying to sell. Such internet business idea is exceptionally successful in building a large amount of revenue with combined internet sales and other affiliate advertising. In order to become effective in such business, one needs to start up using adequate capital and other business aspects.

Blog website or creation

The blog website or creation is aimed to advertise affiliate programs and internet marketing. Such a business idea is an ideal way of generating huge amounts of money over the web. This online business strategy completely involves blog creation that matches an individual to his field of interest. When one's blog or site is in place, marketing advertisements from Google AdSense or whichever affiliate programs could be achieved easily. Blog promotion and site marketing is incredibly in demand these days. If an individual wants to deal with such internet business method, he must see to it that he's knowledgeable and well-prepared.

Writing and publishing content articles

If a person is fond of writing articles, he could easily utilize such interest in earning huge amounts of money. The ideal thing that one could do is to look for a company that considerably needs some web content writers. Such internet business idea is incredibly easy and an individual would never have to exert lots of effort to earn large profits.

These are a few of the internet business ideas which could match one's preferences and needs. If a person wants to learn more about the cited examples, he could simply ask help from any specialist. Aspiring internet businessmen are discovering their world by viewing sites with inclusive information on how to start an online business. As advised, one could also scan the site of Ewan Chia, a renowned speaker and online marketing guru.

As soon as a person has decided which one amongst the many online business ideas he prefers, his next step is to think of ways on how to enhance that business' operations and setups. Managing an internet business isn't so difficult. An individual could easily achieve the ideal business output he desired as long as he is equipped with disposition, knowledge and an accurate online business strategy. Take note that the success of your business deeply lies in your hands. If one wants to achieve something with his enterprise, then he needs to begin making actions and/or decisions with regards to his business operations and dealings.

The 3 Blow-Me-Away Reasons A Side Business Can Be A Wonderful Thing - And How To Make It Happen

Reason #1: Take back control

Placing your livelihoods viability in someone else's hands isn't as comfortable as it once was. Even though this is your business, your clients call the shots. Which is fine, when the budget, and appreciation of your expertise is in abundance. When it's not, work just isn't fun anymore.

You have control over your creativity. You don't have control over the economy, or someone else's cash flow.

Enter a side business to create an asset, and passive income. It's a great thing to get to do what you love, when you don't have to worry about the income it generates. When you can help others who may not have been able to afford your services in the past. When you can move away from the "cobbler whose son goes without shoes" syndrome.

Reason #2. Increase your income potential

With your own business, the one you're passionate about, your income, and your time freedom is limited. Unless you're a huge corporation (think Dell, or DuPont, or Verizon), if you're not present, your business won't survive. You can only work so many hours in a day for which you can be paid. If you can leverage a product, or employees, that's fantastic. But you're still limited to what you're able to manufacture, and your employees still need your supervision.

Leveraging a network of Franchise businesses is a costly expansion, and a costly buy-in. How expensive would it be to duplicate your business? Is it even possible? How much does a McDonald's or a Starbucks franchise cost?

Leveraging a network of people, on the other hand, is inexpensive and accessible. Here, your income potential becomes unlimited. The higher your income, the more time freedom you can enjoy. Time to live your passion, which is why you built your business in the first place.

Reason #3. Lower your stress level

Do you worry about making payroll? Are you comfortable with your retirement account? What do your children's college funds look like? What would it do to your stress level not to have those worries? What if you didn't have to worry about making ends meet where you want them to?

Enter a side business. Now all of your eggs aren't in one basket (or business, as the case may be!).

Making It Happen #1.

I have no time

No one has time. The only way to make more time is to create it. If your desire for a side business, and the financial freedom it can create is strong enough, the time is there. I know it is. I see it being created daily. Here are a couple of tricks to find the nooks and crannies. When your side business is up and running, you'll be able to integrate it into your "normal, Passion Business" work schedule easily.

1. Prepare. Determine what it is you have to do, not what simply takes up time. What small steps will move you in the right direction? Are they phone calls? Writing something out? Scheduling something? The only way to eat an elephant is one bite at a time. You'll find 10 minutes here and 20 minutes there to jot out your ideas, make a call, or run a new business errand.

2. Structure your day.Of course life will come up. But for the most part, you can block out the times you need to spend on your passion business. Then block out times for meetings with yourself to work your side business. Carve 2 hours a day out for just you. It might have to be early in the morning, or later at night in the beginning. Many people like taking a couple of hours in the middle of the day - pretend you have a business lunch and spend 11:30 - 1:30 every day on your new side business. Knowing you're moving forward and taking the steps to build your asset will help lighten the stress your passion business may be currently experiencing (until you can lighten its financial burden).

3. Increase your knowledge so you can increase your belief in your success. When you believe you will succeed, you'll be more likely to use your time wisely. The more you know about others' successes, and what you need to do to achieve the same results, the more comfortable you'll be, taking a little time away from your "normal" activities.

Making it happen #2.

I don't want to give up my business. It's what I know and it's worked before.

No one is suggesting you stop your passion business. That's the primary reason you're starting a new side business to create an asset in the first place! Times have changed however. Even if the economy bounces back, the luxury housing industry has changed. People's purchasing habits have changed, particularly with the ease of using online sources.

Your passion business may have been able to make money on mark-ups in the past, but that margin is getting so much smaller if its there at all, as people are finding comparable product online, for less. And the proliferation of online and TV design shows and information is a 2-edged sword. We all love educated clients, however most people have a difficult time discerning the differences between "TV reality" and the truths of excellent design.

Making it happen #3.

What are my choices?

You'll want your side business to eventually be able to function, and provide your income, without your day-to-day attention. Otherwise, you're simply creating another business in Robert Kiyosaki's "S" quadrant, that of the self-employed or specialist. This is also the quadrant where you might get the most satisfaction, because this tends to be where your passion business lives. But YOU are doing all of the work, limiting your income, and your free time.

To build wealth, you'll need to dip your toe into Kiyosaki's "B" quadrant.

"B" Options

A big company certainly isn't going to work as your side business (nor is it typically an option. Could you imagine creating a company like General Electric to run as a side business? You get the idea). A franchise is a wonderful business option, but they are very expensive, and would typically require an enormous amount of time, at least in the beginning. It would be difficult to build a successful business franchise part-time.

That leaves a network marketing business. Leveraging a network of people is an accessible investment for just about anyone, and you can scale your time involved.

Benefits

There are numerous benefits to leveraging a network of people, particularly in this day and age of social networking. You're already networking!

One, these are scalable business models, meaning you can start small and slow, and build it as quickly or as slowly, as you want. This allows you to run your passion business as you need or care to.

Another advantage is they are very inexpensive, most under $300. One of the best is only $100.

The investment usually includes the entire system; everything from your business website & education, through ongoing training and support.

It is your business, but you're not in business by yourself. You'll have a team of people helping you, and it's to their advantage to see you succeed. This is a true, pay-it-forward system.

Lastly is the business model itself. All it is, really, is word-of-mouth advertising, right? Isn't that how you typically get your clients for your passion business?

Is a side business for you? For me, the answer was easy. I want to live my passion, have a balanced life, and enjoy financial freedom, all while helping others. Don't you? It's certainly worth taking a look.

Everyone should have the opportunity to live on purpose; create from inspiration rather than desperation; and be empowered to do what they love.

For more information and your Free Report, "The Luxury Housing Industry's Small Business Owner's Guide to Leverage & The New Economy", visit [http://www.PassionDrivenProfitsInc.com] now.

Is Your Growing Business Vulnerable? The Challenges of Getting to and Beyond Second Stage

Businesses go through stages of development and growth from start up to full maturity. At every point along the way there is a risk of failure, but the further your business goes toward third stage the more stable and sustainable it becomes. Still, most businesses never progress beyond first stage. There are a lot of reasons for this, but many times the key reason is simple. Business owners don't know what the stages are and they don't know how to go about moving from one stage to another.

In this brief article I outline each of the stages of development and offer just a few simple suggestions about what a business owner faces at each stage and what they can do to help accomplish the transition from stage to stage. The one common theme you will find throughout is my core belief that every business owner can benefit from a relationship with an experience coach or mentor. I also highlight the value of peer learning and the development of business acumen as key factors in growing the business through each stage.

Startup

During the startup stage a business is focused almost 100% on survival. This business is all about developing a market, producing sales, accumulating cash and other resources, and reaching past the break-even point. A startup business is more than just an idea, but it is not yet a stable business that will produce steady income for its owner.

The business owner's focus during startup is typically on sales and production to achieve their initial goals for revenue and profits. During this phase the risk of failure is very high and many businesses simply don't survive to reach first stage. Startup business owners can improve their chances of survival by working with an adviser or mentor very early in the process. Those most likely to succeed at this level are owners who spend the time to create a solid operating plan for the business and have a very strong grasp of the key numbers that will produce success. Strong financial systems are often the most critical factor and an area where almost every startup business can benefit from the advice of an experience coach or mentor.

First Stage

The First Stage business has grown up a little bit from the startup. At this stage the business is usually producing regular revenue and is somewhat stable. Business owners at this stage must answer some critical questions to define what happens next. First among these questions is do I want to grow? This may seem like a no brainer, but it is often the most difficult question to answer truthfully. The reality for first stage business owners is that growth will require changing the business significantly over time and it will require that the owner's role change as well. Many business owners decide, either consciously or by default, not to grow beyond this stage. These owners usually end up with a "lifestyle" business that provides them a modest income as long as they work at it.

Most fist stage businesses generate less than 1 million dollars in annual sales, usually much less. They typically have fewer than 10 employees and often have only the business owner and his or her family active in the business. Growing beyond this stage requires that the business owner be willing to trust others to carry out many of the tasks of the business. They will also need to be flexible and creative to make adjustments to the business model to bring in more sales. They may even need to change their own role in the business as the needs of the company change over time.

For many business owners the most critical decision during first stage is how to get information they need to reach into second stage and beyond. It is during this first stage that many owners discover the values of peer group learning and of a business coach, mentor or adviser. Both peer learning and coaching have real world value and the most successful owners find ways to incorporate both.

First stage business owners also face the reality that "you don't know what you don't know." To get to first stage these owners had to be good service or product providers, but they often do not have training in or knowledge of many of the key elements of business that can impact their long term success. For these owners a program for developing their business knowledge base and increasing their personal acumen is incredibly valuable. Finding the right program and engaging regularly can be the key foundation element to position these companies for growth into the second stage.

Some business owners decide that growth is worth the effort. For these owners business success means getting to second stage and beyond. Getting there involves risk, but the rewards can be amazing.

Second Stage

Second Stage businesses are those that have grown through first stage but are not yet fully mature. They tend to enter this stage as they approach 1 Million dollars in annual sales and continue in this stage through 50-100 Million in sales. Early second stage companies usually have several employees and possibly one or more managers, but they do not yet have all the systems in place to develop to their full potential. The leaders of these companies have already demonstrated their ability to create vision and to implement a business model. At the second stage they are ready to develop or improve their skills in leadership and team development and to create systems to ensure a sustainable business model for the future.

At the center of second stage business identity is growth. In fact, many business owners at this level find that while growth is a blessing, it is also often their greatest risk. Growth for these leaders means adding staff, increasing inventory, adding new capacity for production or service delivery, and the list goes on. All of this means increased cash requirements, changes in leadership and management functions, and the development of systems that keep every part of the business on track.

The Edward Lowe Foundation has made second stage businesses their focus. Their research and experience highlights the challenges second stage business owners face including:

1. Many people are not aware of what others are doing.

2. People lack an understanding of the firm's ultimate goals.

3. A precipitous drop in product quality occurs for unknown reasons.

4. Turnover increases sharply, just when the company needs more personnel.

5. You wake up worrying about operational tasks that someone else ought to be handling.

6. All your customers want to meet with you, but finding the time to do so seems impossible.

For the owners of second stage businesses the keys to success are often difficult to see. Creating business systems is a very high priority along with developing a reliable management team to lead critical areas of the company. Often the most difficult task is changing the owner's personal role in the business as they transition from doer to leader. Making this transition requires that the leader have the information, motivation, accountability systems and vision to make it all happen. Having the support of a peer group and a coach or mentor are often critical to this business owner's success.

Like first stage businesses, those at the second stage often find that they don't have all of the knowledge base and skills sets needed to achieve their goals. Here again, a program that is focused on developing business acumen and increasing the knowledge base of the owner is often the key to success. Peer learning can play a huge role but there is also room for targeted learning based in a solid system for business growth and operations. However the learning is developed, it will be most successful if it provides a broad base of knowledge that gives the owner the tools to make sure that every part of the business is operating at peak performance.

Clearing the hurdles of second stage is not easy. Most businesses will face more than one crisis during this stage. How the business owner responds to those moments will determine if they achieve third stage or not. Some owners will face the struggles and decide that it is too much and return to first stage where there is less money, but hopefully less struggle as well. Some will engage in an ongoing struggle that can carry on for years without breaking out of the second stage. A few will develop the tools, resources, and skills needed to push through to third stage where they can enjoy both the financial rewards and the long term stability they want.

Third Stage

At the third stage a business has reached full maturity. These businesses are marked by strong leadership at both the executive and management levels. They typically enjoy steady growth supported by strong operating and administrative systems. Their owners have a solid understanding of what the business needs to continue to succeed and they have the tools and resources available to them to make those things happen.

The greatest risk for businesses in the third stage is often complacency or stagnation. It is easy at this stage to fall into the trap of believing your own PR. You are a great company and you have achieved success, but you can't afford to sit comfortably on what has happened in the past. To stay at this level and continue your success it is critical to keep focused on what made you great and continue to look for ways to improve and grow.

Success at any stage

The bottom line for every business owner is that you want to have a business that meets your financial goals, offers you some level of personal satisfaction, allows you to have balance in your life, and provides some form of security for the future. All of this is possible for owners at any of the three stages of business. What you need to decide is where you want the business to land. Are you OK with a business that will always be about your personal production and will remain dependent on you for its survival? If so, then first stage is a good place to get comfortable. The trade off for most business owners is that your income potential will always be limited by your personal ability to produce. If you want more, then you will want to reach for second stage and beyond. No matter what your choice, having the right team helping you succeed and working with the right coach or adviser can make all the difference in the world.