Small business
Business Planning

10 Small Business Tax Moves to Make the Second Half of the Year – Part 2

Welcome back, savvy small business owners! If you thought the first five tax moves we covered last week were exciting, buckle up because we're about to take your tax strategy to the next level. In Part 1, we explored supercharging your retirement accounts, making the most of Section 179 deductions, turning your home office into a tax haven, becoming a charitable giving ninja, and wining and dining for Uncle Sam. If you missed it, go back and get the goods!

This week, we're diving into five more game-changing tax moves that will have you looking at your business finances in a whole new light. From giving your business structure a makeover to conquering estimated tax payments, these strategies are designed to help you finish 2024 strong and set you up for success in the years to come. So, grab your favorite caffeinated beverage, settle into your tax-deductible office chair, and let's explore the final five moves that could transform your small business's financial future.

Moreover, I wouldn’t be a lawyer if I didn’t give you a disclaimer (or use the word “moreover”): this article contains general information for small business owners and is not tax or legal advice. Always consult an expert who can determine which tax strategies are best for your business and ensure you implement them correctly. In fact, if you don’t have a relationship with a CPA whom you can count on come October when you’re making your tax projections, now is the time! You’ll also want a bookkeeper if you don’t have one already. Your bookkeeper will keep your books reconciled and categorized each month, so you’ll be ready when October rolls around. Read to the end, and I’ll show you how to get advice and counsel that’s suited for you. 

And with that, let’s get started!

Move No. 6: Give Your Business Structure a Makeover

Is your business structure so last season? It might be time for a corporate facelift. For instance, it may be time to switch from a sole proprietorship to an S corp. As an S corp, you can potentially reduce your self-employment tax by paying yourself a reasonable salary and taking the rest of your profits as distributions. It's like cutting your tax bill in half - legally though.

But remember, "reasonable" is the keyword here. If you try to pay yourself $1 a year and take the rest as distributions, the IRS might raise an eyebrow. Or two. Or call for a full-blown audit. So be smart, be reasonable, and work with a professional. As a LIFTed Business Advisor, I can help. Read on to find out how to book a complimentary consult call and learn more.

Move No. 7: Be a Health Care Hero With an HRA

Want to be the coolest boss ever while also saving on taxes? Implement a Health Reimbursement Arrangement (HRA). It's like giving your employees a health care allowance, except it's tax-free for them and tax-deductible for you. Win-win!

There are different types of HRAs to choose from. There's the Qualified Small Employer HRA (QSEHRA - gosh that’s a mouthful) for businesses with fewer than 50 full-time employees, and the Individual Coverage HRA (ICHRA) which has no size limits. Make sure you have clarity on the best option for your business by consulting with a professional. 

And here's a bonus: HRAs can help you attract and retain top talent without breaking the bank on group health insurance. You’re welcome.

Move No. 8: Market Like Mad

While you’re spending money to make more money (also known as “marketing”), this is your reminder that you can deduct those expenses. So amp up your marketing efforts in the latter half of 2024 and watch those deductions roll in.

Redesign your website, plaster your logo on some pens, or sponsor the local Little League team if you like. Host a webinar, start a podcast, or create a viral TikTok dance challenge about your product (if that’s your thing). The sky's the limit, and it's all deductible as long as it's "ordinary and necessary" for your business.

And here's a little-known fact: you can deduct the cost of promotional items like t-shirts or mugs as long as they cost $4 or less, have your logo on them, and you distribute them widely. So order those branded fidget spinners. Your customers might forget about them in a week, but your tax deduction will last forever. Or at least until the next tax year.

Move No. 9: Invest in Your Employees’ Brain Power

Investing in your team is always a good idea. Send your team to conferences, subscribe them to online learning platforms, or bring in experts for training sessions. Not only will you have a smarter workforce, but you'll also have a fatter deduction on your tax return. Plus, your employees will love you for investing in their development.

But wait, there's more! If you provide educational assistance to your employees for courses not directly related to their current job, you can exclude up to $5,250 of this benefit from each employee's wages annually under an educational assistance program. So if your marketing manager wants to take an interpretive dance class, you can potentially help them out and get a tax break. Who says the IRS doesn't have a sense of humor?

And while you’re at it, why not learn something yourself? Any education expenses that maintain or improve skills needed in your current work are deductible, too.

Move No. 10: Master the Art of Estimated Tax Payments

Ah, estimated tax payments - the bane of every small business owner's existence. But fear not! With a little planning, you can conquer this quarterly beast. Here’s how to do it: predict your income, calculate your tax, and make payments on time. In return, you can avoid paying penalties and create a sense of calm in your nervous system. You get bonus points if you set up a separate savings account for taxes and contribute to it monthly. It's like a swear jar but for Uncle Sam. And you don’t have to swear (unless you want to).

If you expect to owe $1,000 or more in taxes when you file your return, you generally have to make estimated tax payments. In this case, you've got four due dates to look forward to: April 15, June 15, September 15, and January 15. Mark them on your calendar if you haven’t already.

And here's a little-known trick: if you realize you've underpaid, you can increase your withholding on your W-2 (if you have one) towards the end of the year. Withholding is considered to have been paid evenly throughout the year, even if you do it all in December. It's a little like a "get out of jail free" card, courtesy of the IRS.

Your Mission, Should You Choose to Accept It…

There you have it! Ten tax moves to make between now and New Year’s Day. Now, armed with these 10 tax-saving strategies, go make the second half of 2024 your most financially savvy yet. Your future self (and your accountant) will thank you. And who knows? Maybe next year, you'll be the one writing witty tax advice articles. Dream big, fellow entrepreneur. Dream big.

The Trusted Advisor Your Business Needs

As your trusted LIFTed Business Advisor, I understand the critical importance of strategic tax planning to maximize your small business's financial health. Having support and strategies for implementing these tax moves not only helps you save money but also positions your business for long-term success. That's why I offer a comprehensive LIFT Business Breakthrough Session where we'll analyze your current business foundations - including your tax strategies - and develop a plan to address any gaps. Together, we'll ensure that your business is well-equipped to take advantage of these tax-saving opportunities. With my support, you can focus on what you do best—growing your business.

Book a call here to learn more and get started today.

This article is a service of a Personal Family Lawyer®. We offer a complete spectrum of legal services for businesses and can help you make the wisest choices with your business throughout life and in the event of your death. We also offer a LIFT Business Breakthrough Session™, which includes a review of all the legal, financial, and tax systems you need for your business. Call us today to schedule.

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

We offer a complete spectrum of legal services for business owners and can help you make the wisest choices on how to deal with your business throughout life and in the event of your death. We also offer you a LIFT Your Life And Business Planning Session, which includes a review of all the legal, insurance, financial, and tax systems you need for your business. Schedule online today.

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Business tax
Business Planning

10 Small Business Tax Moves to Make the Second Half of the Year – Part 1

As a small business owner, you know that managing your finances strategically is crucial to your success. With the second half of 2024 underway, now is a great time to focus on the thing no one likes to talk about but can make a huge difference to your bottom line: taxes.

I know it’s not even close to tax season, but hear me out. Strategic tax planning affects your bottom line by helping you maximize deductions and minimize your tax liability. So, thinking about these strategies now gives you plenty of time to take action rather than scrambling in December (or worse yet, next March) when it may be too late. Trust me. Your future self will thank you.

This is the first article of a 2-part series, so my apologies if you get so excited by the time you get to the end of this article that you’re bummed you have to wait another week to finish it (hey, it could happen). In that case, spend the time between now and next week exploring the suggestions I’ve outlined here. That should tide you over.

Moreover, I wouldn’t be a lawyer if I didn’t give you a disclaimer (or use the word “moreover”): this article contains general information for small business owners and is not tax or legal advice. Always consult an expert who can determine which tax strategies are best for your business and ensure you implement them correctly. In fact, if you don’t have a relationship with a CPA whom you can count on come October when you’re making your tax projections, now is the time! You’ll also want a bookkeeper if you don’t have one already. Your bookkeeper will keep your books reconciled and categorized each month, so you’ll be ready when October rolls around. Read to the end, and I’ll show you how to get advice and counsel that’s suited for you. 

And with that, let’s get started!

Move No. 1: Supercharge Your Retirement Accounts

Uncle Sam is practically begging you to save for retirement (unless you want to work until you die, no judgment, you do you). In 2024, you can stuff up to $23,000 into your 401(k), or $30,500 if you're 50 or older. Got a SIMPLE IRA? You can contribute up to $16,000, with an extra $3,500 if you're in the half-century club. So now is a good time to increase those contributions if you’re off track this year.

Since you’re a self-employed business owner, you can supercharge your retirement savings with a SEP IRA or Solo 401(k). These accounts allow you to contribute up to 25% of your net earnings from self-employment, up to a maximum of $69,000. That's right, you could potentially shelter almost 70 grand from taxes - and it’s totally legal.

And don’t forget that compound interest is your friend. It's like that buddy who always has your back, except instead of helping you move furniture, it's making your money grow while you sleep. So start maxing out those contributions now.

Move No. 2: Shop ‘Til You Drop (for Business Stuff, Of Course)

Remember when your parents said money doesn't grow on trees? Well, in the world of Section 179 deductions, it kind of does. You can deduct up to $1,200,000 in 2024 for qualifying equipment, software, or your next new vehicle. That's right, the IRS is essentially saying, "Please, spend money on your business. We insist!"

So, if you've been eyeing that new 3D printer, high-tech coffee maker (hey, productivity is important), or a fleet of company Sprinter Vans, now's the time to break out the company credit card. Just make sure it's actually for your business unless you want to explain to an IRS auditor why your "office chair" looks suspiciously like a jet ski.

Additionally, don't forget about bonus depreciation. In 2024, you can deduct 60% of the cost of qualified property in the year you put it in service. These deductions can be a game-changer for your business's tax bill. It's like the government is giving you a "buy now, save later" coupon, except "later" is actually "right now" - well, whenever you file your taxes.

Move No. 3: Turn Your Home Office Into a Tax Haven

Working from home? As a business owner, you get to take advantage of the home office deduction. It’s like finding money in your couch cushions, except the couch is your house!

You've got two options here: the simplified method or the regular method. The simplified method lets you deduct $5 per square foot, up to 300 square feet. The regular method involves calculating actual expenses, which is perfect for those who enjoy spreadsheets (again, you do you).

Just remember, your office needs to be used exclusively for business, which means that pile of laundry in the corner should probably go.

And here's a little-known secret: if you're self-employed and use your cell phone and internet for business, you can deduct a portion of those expenses too.

Move No. 4: Become a Charitable Giving Ninja

Feeling generous? Good news! You can support your favorite causes and save money at the same time. In 2024, you can generally deduct up to 60% of your adjusted gross income for cash donations. And you can "bunch" your donations. This means concentrating several years' worth of giving into one year to exceed the standard deduction.

But wait, there's more! If you're over 70½, you can make qualified charitable distributions (QCDs) directly from your IRA. These count towards your required minimum distributions but don't increase your taxable income. If you're feeling really fancy, consider setting up a donor-advised fund. It's perfect for those who want to be philanthropic but also like to keep their options open. You know, in case you discover a new passion for saving endangered left-handed albino squirrels or something.

Move No. 5: Wine and Dine for Uncle Sam

While you can't write off that crazy night at the karaoke bar as a business expense anymore (gee, thanks, tax reform), you can still deduct 50% of your business meals. So go ahead, treat your clients to that swanky steakhouse. Don’t forget to keep the receipt, though. The IRS expects you to record the amount, date, place, business purpose, and business relationship of the person you dined with.

And if you provide meals to your employees at work for your convenience (like during a late-night crunch session), those are 100% deductible. So next time your team is burning the midnight oil, order some pizzas. Your employees will love you, and your tax bill will shrink. It's a win-win!

These 5 tax strategies should give you enough to chew on until next week when you’ll learn 5 more moves you can make this year. In the meantime, if you’re looking to get specific guidance for your business, book a call with me using the link below.

The Trusted Advisor Your Business Needs

As your trusted LIFTed Business Advisor, I understand the critical importance of strategic tax planning to maximize your small business's financial health. Having support and strategies for implementing these tax moves not only helps you save money but also positions your business for long-term success. That's why I offer a comprehensive LIFT Business Breakthrough Session where we'll analyze your current business foundations - including your tax strategies - and develop a plan to address any gaps. Together, we'll ensure that your business is well-equipped to take advantage of these tax-saving opportunities. With my support, you can focus on what you do best—growing your business.

Book a call to learn more and get started today.

This article is a service of a Personal Family Lawyer®. We offer a complete spectrum of legal services for businesses and can help you make the wisest choices with your business throughout life and in the event of your death. We also offer a LIFT Business Breakthrough Session™, which includes a review of all the legal, financial, and tax systems you need for your business. Call us today to schedule.

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

We offer a complete spectrum of legal services for business owners and can help you make the wisest choices on how to deal with your business throughout life and in the event of your death. We also offer you a LIFT Your Life And Business Planning Session, which includes a review of all the legal, insurance, financial, and tax systems you need for your business. Schedule online today.

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customer reviews
Business Planning

Turn Social Media Criticism into Business Opportunity – Part 2

Last week, we explored the first five strategies for effectively handling negative reviews on social media, including staying calm, responding promptly, maintaining professionalism, addressing specific issues, and taking conversations offline. As I discussed, these tactics can help you transform criticism into opportunities for growth, demonstrating your commitment to excellent customer service.

In this second part of our series, we’ll dive into the remaining five strategies that will further equip you to protect your business from the impact of negative feedback. These additional strategies will reinforce your ability to manage your online reputation and foster positive relationships with your customers. So let’s continue on, shall we?

Strategy 6: Follow Up

Following up with the customer after resolving the issue is a critical step in ensuring their satisfaction. This follow-up demonstrates that you care about their experience and are committed to providing excellent service. A positive follow-up can sometimes lead to the customer updating their review or leaving additional positive feedback.

Here’s some suggested language: “We hope the resolution we provided met your expectations. If there’s anything else we can assist you with, please let us know. Thank you for giving us the opportunity to make things right.

Strategy 7: Learn From the Feedback

Negative reviews offer valuable insights into areas where your business can improve. Here’s where opportunities lie! Analyze the feedback to identify any recurring issues or trends. Then use this information to make necessary adjustments and enhance your products, services, or processes.

For example, if multiple reviews mention slow response times, it’s an indication that you need to improve your customer service protocols. Implementing changes based on customer feedback shows that you are listening and committed to continuous improvement. In this sense, negative criticism can be a catalyst for moving your business forward.

Strategy 8: Encourage Positive Reviews

Building a strong base of positive reviews can help mitigate the impact of negative ones. So encourage your satisfied customers to share their experiences by making it easy for them to leave reviews. Include review links in your email signatures, on your website, and in post-purchase follow-up emails.

Politely asking for reviews can also be effective. For example, you might say: “We hope you enjoyed your experience with us. If you have a moment, we would greatly appreciate it if you could leave us a review.” If it’s appropriate, link to your Google Business page or Facebook page so customers know where to leave a review.

Strategy 9: Monitor Your Online Presence

Regularly monitoring your online presence is crucial for staying aware of what people are saying about your business. Set up Google Alerts for your business name and use social media tools to track mentions and reviews across various platforms. This proactive approach allows you to respond quickly to any feedback and engage with your audience effectively.

By staying on top of your online reputation, you can address issues before they escalate and foster positive relationships with your customers. As your trusted advisor, I suggest you have a system in place for regular monitoring and that it’s part of a team member’s job duties.

Strategy 10: Seek Help From Professionals

If managing your online reputation feels overwhelming, seek professional help. Reputation management services specialize in monitoring and responding to reviews, as well as implementing strategies to enhance your online presence. Investing in such services can free up your time to focus on other aspects of your business while ensuring your brand is protected.

You should also enlist the help of a trusted advisor who’s also a lawyer for crucial support. As a LIFTed Business Advisor and lawyer I can offer valuable guidance on how to respond to defamatory or false reviews that could harm your business's reputation. In cases where a review is malicious and unfounded, I can assist in drafting a cease-and-desist letter or taking legal action to have the review removed.

The Trusted Advisor Your Business Needs

Effectively managing negative feedback on social media is essential to maintaining a strong brand reputation and fostering customer trust. By following the 10 strategies outlined in this series, you can turn potential setbacks into opportunities for growth. As your LIFTed Business Advisor, I am here to support you every step of the way. That’s why I offer a LIFT Business Breakthrough Session, where we’ll analyze your current business practices, identify areas for improvement, and develop a robust plan to ensure you have all the right protective systems in place. Contact us today to take the first step toward a stronger, more resilient brand.

Book a call here to learn more and get started.

This article is a service of a Personal Family Lawyer®. We offer a complete spectrum of legal services for businesses and can help you make the wisest choices with your business throughout life and in the event of your death. We also offer a LIFT Business Breakthrough Session™, which includes a review of all the legal, financial, and tax systems you need for your business. Call us today to schedule.

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

We offer a complete spectrum of legal services for business owners and can help you make the wisest choices on how to deal with your business throughout life and in the event of your death. We also offer you a LIFT Your Life And Business Planning Session, which includes a review of all the legal, insurance, financial, and tax systems you need for your business. Schedule online today.

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bad reviews
Business Planning

Turn Social Media Criticism into Business Opportunity – Part 1

As a small business owner, navigating the world of social media reviews can be daunting. A single negative review can feel like a personal attack and a potential threat to your brand’s reputation. However, handling these reviews with grace and strategy - as well as the support of a trusted advisor - can actually strengthen your brand and demonstrate your commitment to excellent customer service. 

In this two-part series, I’ll walk you through 10 effective strategies to protect your business from the impact of public negative feedback. This week we’ll look at the first 5 strategies.

Strategy 1: Stay Calm and Assess the Situation

Most likely, reading negative feedback on social media will rattle you and you’ll feel it in your body. But it’s important to stay calm. This is not to say that your emotional response isn’t valid; it certainly is. It’s easy to take negative reviews personally, especially when you’ve put your heart and soul into your business. So if you need time to process the emotions, take the time. Then revisit the situation when you are calm. Whatever you do, DO NOT immediately respond publicly to the criticism. A calm and composed approach is necessary to handle the situation effectively. 

Once you’re in a calm frame of mind, carefully re-read the review with the lens of understanding the writer’s perspective. This initial assessment will help you determine the best course of action.

Then to assess the situation effectively, ask yourself the following questions:

  • What is the main issue the customer is highlighting?
  • Is this an isolated incident or part of a broader pattern?
  • Can the issue be resolved quickly, or does it require more in-depth attention?
  • Is this an opportunity for me to learn something new or adopt new ways of doing business?
  • Is this an opportunity to turn an unhappy customer into a raving fan?

By answering these questions, you’ll be better equipped to formulate a thoughtful and appropriate response.

Strategy 2: Respond Promptly

In the fast-paced world of social media, a prompt response is crucial. A delayed response can give the impression that you don’t care about customer feedback or that you’re not attentive to your online presence. So after you’ve assessed the situation, aim to respond within 24 hours to show that you are proactive and engaged.

When crafting your response, be sure to:

  • Acknowledge the review and the issue raised.
  • Express empathy and understanding.
  • Outline your plan to address the problem.

For example, a timely and effective response might be: “Thank you for your feedback. We’re sorry to hear about your experience and would like to make it right. Please reach out to us directly so we can assist you further.”

Strategy 3: Be Respectful and Courteous

This seems obvious but is worth mentioning: it’s essential to maintain professionalism and courtesy in your response. Even if the review is harsh or unfair, responding with kindness and respect reflects your brand well. Avoid getting defensive or dismissive, as this can escalate the situation and damage your company’s reputation.

Use language that is calm, respectful, and aligned with your brand’s voice. Here’s an example: “We apologize for any inconvenience you experienced. We strive to provide excellent service and are committed to resolving this issue to your satisfaction.”

Strategy 4: Address the Specific Issue

When addressing the issue raised in the review, be specific and transparent. If the problem resulted from an error on your part, acknowledge it and explain the steps you’re taking to rectify it. This honesty helps build trust with your customers.

For instance, if a customer complains about a defective product, your response could be: “We’re sorry to hear that you received a defective item. We are issuing a full refund and sending a replacement immediately. We are also reviewing our quality control processes to prevent this from happening in the future.” If you’re at all in doubt about how to appropriately address the specific issue in a way that doesn’t put your business at risk, call me and I’ll walk you through it.

Strategy 5: Take the Conversation Offline

Taking the conversation offline often leads to a more satisfactory resolution. By offering to discuss the issue privately, you show your willingness to handle the situation discreetly and professionally. This approach also prevents a prolonged public debate that could attract more negative attention. You don’t want that.

Here’s an example of language you could use: “We appreciate your feedback and would like to discuss this further to resolve the issue. Please send us a direct message with your contact details, and we will get in touch with you promptly.”

These 5 strategies will help you handle negative public criticism on social media, but these are not the only strategies I have for you! Come back next week for 5 more strategies to protect your business and your brand.

The Trusted Advisor You Need

As your trusted LIFTed Business Advisor, I understand the critical importance of effectively handling negative feedback to protect your brand’s reputation. Having support and strategies for responding to negative reviews not only helps you build trust with your customers but also prevents potential conflicts that could harm your business. That’s why I offer a comprehensive LIFT Business Breakthrough Session where we’ll analyze your current business foundations - including protecting your business from risk - and develop a plan to address any gaps. Together, we’ll ensure that your business is well-equipped to handle criticism constructively. With my support, you can confidently engage with your customers, safeguard your brand’s reputation, and focus on what you do best—growing your business.

Book a call here to learn more and get started today.

This article is a service of a Personal Family Lawyer®. We offer a complete spectrum of legal services for businesses and can help you make the wisest choices with your business throughout life and in the event of your death. We also offer a LIFT Business Breakthrough Session™, which includes a review of all the legal, financial, and tax systems you need for your business. Call us today to schedule.

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

We offer a complete spectrum of legal services for business owners and can help you make the wisest choices on how to deal with your business throughout life and in the event of your death. We also offer you a LIFT Your Life And Business Planning Session, which includes a review of all the legal, insurance, financial, and tax systems you need for your business. Schedule online today.

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leadership
Business Planning

Become a Stronger Leader Through Self-Awareness

As a small business owner, you wear many hats and juggle countless responsibilities every single day. From managing employees to handling finances to keeping customers happy, strong leadership is critical to your company's success. But what makes a truly effective leader? While there are many qualities that great leaders possess, one that is often overlooked is self-awareness. Having an in-depth understanding of your own strengths, weaknesses, communication styles and natural tendencies can help you maximize your potential and unlock your ability to inspire and motivate others.

Two tools that can provide you with invaluable self-knowledge are the DISC assessment and the Kolbe assessment. In this article, we’ll break each one down so you’ll gain an understanding of how you can use these self-awareness tools to improve your leadership skills. Let’s start with the DISC assessment.

The DISC Assessment: Understanding Your Communication Style

The DISC assessment helps you understand your behavioral styles and preferences. It is based on the work of psychologist William Marston, who categorized behavior into four main styles: Dominance, Influence, Steadiness, and Conscientiousness. The assessment is typically taken online and consists of a series of questions that ask you to choose statements that best describe your behaviors in various situations.

The assessment works by analyzing your responses and providing a detailed report that outlines your dominant behavioral traits. It categorizes you into one or more of the four behavior types, highlighting your strengths, communication style, and potential areas for development. This information can be valuable for understanding how your behavior impacts your interactions with others - whether it’s team members, clients or even friends and family.

Here’s what each type indicates:

Dominance. If you score high in the Dominance dimension, you are likely direct, results-oriented, and willing to challenge the status quo. As a leader, this can help you stay focused on goals and drive your team to achieve them. However, you may also need to work on being more patient and considering others' perspectives.

Influence. A high score in Influence indicates that you tend to be persuasive, enthusiastic, and socially confident. These strengths can help you inspire and motivate your employees. But you may need to be mindful of not being seen as overly talkative or lacking focus.

Steadiness. If Steadiness is your primary dimension, you are likely patient, calm, and excellent at building relationships. As a leader, these qualities can foster loyalty and help you provide support to your team. However, you may need to push yourself to be more open to change.

Conscientiousness. Finally, those who score high in Conscientiousness tend to be detail-oriented, analytical, and good at following rules and procedures. This attention to detail is invaluable, but you may need to be careful not to get bogged down in minutiae and remain open to new ideas.

Taking the assessment yourself and giving it to your team members is beneficial in several ways. First, it can help you better appreciate your own tendencies and how your decision-making and communication styles affect the organization. Second, it can aid you in building effective teams by identifying the behavioral strengths of team members and how they complement each other. And third, it can reduce conflict by providing insights into how different individuals prefer to communicate and interact. Overall, the DISC assessment can be a valuable aid to help boost your self-awareness, leadership skills, and team dynamics.

Now that you have an idea of what the DISC is about, let’s turn to the Kolbe assessment.

The Kolbe Assessment: Understanding Your Natural Instincts

While the DISC reveals your typical behaviors, the Kolbe assessment dives even deeper by measuring your instinctive method of operation, or "modus operandi" (M.O.). This sheds light on your natural strengths, abilities, and tendencies that you don't have to put conscious effort into. Developed by Kathy Kolbe, this assessment is based on the idea that each person has a natural way of taking action, which remains consistent throughout their life. Unlike personality assessments, which focus on behavior and emotions, the Kolbe assessment focuses on how you naturally solve problems and make decisions.

There are four key areas the Kolbe explores:

Fact Finder: How you gather and share information

Follow Thru: How you arrange and design

Quick Start: How you deal with risk and uncertainty

Implementor: How you handle space and tangibles

By understanding your Kolbe results, you gain clarity into why you naturally excel in certain areas and struggle in others. For example, as a leader, if you are a high Follow Thru, you likely shine at creating efficient systems and processes. But if you are low in Quick Start, you may become paralyzed when faced with constant change. With this knowledge, you can capitalize on your strengths while finding ways to compensate for your areas of avoidance.

How does this tool help you as an entrepreneur? First, it helps you understand your natural strengths so you can leverage that knowledge to improve decision-making and problem-solving. Second, giving the assessment to your team can help you increase your team’s performance by identifying the unique strengths of each member and how they can work together more effectively. And third, the tool can help you reduce conflicts by providing insights into how individuals prefer to approach tasks and projects. Overall, the Kolbe assessment can be a powerful tool if you’re looking to optimize your own performance and that of your team.

Leading With Self-Awareness

Now that you understand how the DISC and Kolbe assessments work, you can see how they can transform you into a more self-aware, conscious leader. When you know your typical behaviors and communication styles thanks to DISC, you can adapt your approach to better connect with each individual employee, vendor, or client. And with the deep insight into your instincts from Kolbe, you'll have the self-knowledge to double down on your natural gifts while shoring up your blind spots.

Perhaps most importantly, leading with this level of self-awareness allows you to not only understand yourself, but to appreciate the diversity within your team. You'll recognize that just as you have your own unique combination of DISC dimensions and Kolbe instincts, each employee has their own strengths, communication styles, and tendencies to contribute. By creating an environment where you validate these differences, you'll empower your team and inspire them to work together like never before.

As a small business owner and leader, gaining deeper self-awareness through assessments like DISC and Kolbe is one of the greatest investments you can make in yourself and your company. When you commit to truly understanding your own behaviors, communication styles, instincts, and innate abilities—as well as those of your team—you'll have the foundation to become an exceptional leader who brings out the best in yourself and others. So take the first step on your journey of self-discovery today and unlock your full potential to inspire, motivate, and drive your business toward incredible success.

How I Support You So You Can Focus on Your Business

As your trusted LIFTed Business Advisor, I know how important it is for you to hone your leadership skills and build an effective team. Effective leadership skills not only help you build your business but also help you avoid risk and conflict, both of which can nullify everything you’ve worked for.

That’s why I offer a LIFT Business Breakthrough Session, where together, we’ll analyze your company’s foundational systems to ensure your business is protected from risk and conflict. Then we’ll put together a plan for filling in any holes so you’re free to develop yourself as a leader, grow your business, and empower your team, without worrying about what could go wrong. I’m the trusted advisor who you can always turn to.

Book a call here to learn more and get started today.

This article is a service of a Personal Family Lawyer®. We offer a complete spectrum of legal services for businesses and can help you make the wisest choices with your business throughout life and in the event of your death. We also offer a LIFT Business Breakthrough Session, which includes a review of all the legal, financial, and tax systems you need for your business. Call us today to schedule.

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

We offer a complete spectrum of legal services for business owners and can help you make the wisest choices on how to deal with your business throughout life and in the event of your death. We also offer you a LIFT Your Life And Business Planning Session, which includes a review of all the legal, insurance, financial, and tax systems you need for your business. Schedule online today.

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Business Planning

The Surprising Secret to Business Success: Replacing Yourself!

You started your business as a labor of love, nurturing it through those tough early years with grit and personal sacrifice. Over time, that seedling grew into a successful enterprise through your sheer force of will and hands-on leadership.

Your business has become an extension of yourself. After all, you are the boss, the visionary, the indispensable driving force behind it all. At least, that's how it may feel. But even for a skilled leader, there is one uncomfortable truth to accept - at some point, you must replace yourself if you want your company to outlive you, whether it’s through a sale, your retirement, your death or incapacity. Paradoxical as it sounds, making yourself replaceable is the ultimate key to ensuring your business's longevity.

In this article, I’ll take you through not only why you need a plan for what happens if you’re no longer involved in your business on a daily basis, but also how to make the tough but right decisions for your business, and what to do to formalize your plans. Let’s start, however, with the first step: cultivating the right mindset.

The Paradox of Replacing Yourself

As an entrepreneur, you've worked incredibly hard to build your company from the ground up. Your business is your baby - the product of your passion, sacrifice, and undying commitment. Probably one of the last things you’re thinking about is either closing it down or handing it off to someone else. 

But here's a difficult truth you need to accept: despite how indispensable you might feel, your business cannot rely on you alone to survive in the long run. Someday, whether due to retirement, illness - or of course, death - you won't be around to call the shots anymore. And if you haven't prepared for that inevitability, your life's work could crumble. And your loved ones could end up in court, or even in conflict with each other or your business partner(s) or team members. Your legacy could be tarnished. All these outcomes are avoidable, so long as you’ve planned ahead.

So what does it mean to plan ahead? It means you must make it your mission to systematically replace yourself as the boss. It seems paradoxical, doesn't it? You've worked so hard to get your business off the ground, so why would you willingly give that up? The answer is sustainability - if you want your company to thrive for generations, you need to let go of the reins, at least at some point.

Don't think of it as quitting or admitting defeat. Think of it as the ultimate show of leadership and love. By replacing yourself, your business carries on without being crippled by your absence. It continues to serve people who need your company’s services or products. It continues to provide jobs for your team members. It continues to support your loved ones, if that’s what you want. What a gift you’re giving to your customers and your loved ones!

Think for a minute about what could have happened to Apple after Steve Jobs died. Had he not made a plan to replace himself, it’s possible your iPhone would be just a relic today, maybe even stashed away in a box in your attic. Apple could have been broken up in pieces and sold off, or Steve Jobs’ loved ones tied up in court and in conflict with the other Apple shareholders. Thankfully none of this happened. iPhones are still being made and improved upon each year, and not only that, but new products have been introduced since Jobs’ death. In fact, Apple is still one of the most profitable and influential companies in the world. 

You don’t have to be as well-known as Steve Jobs and Apple for the same lessons to apply. Replace yourself and your business continues to serve people and enrich their lives. Don’t replace yourself, and it’s very likely that your business ends when you do. It’s that simple.

Identify Your Successors

So how do you go about replacing yourself? Start by identifying whether you have any internal team members to begin to develop as potential successors, or if you’ll need to consider an outside sale of your Company, or possibly hiring for future succession. Don’t worry about finding a carbon copy of you, but rather molding people who share your vision and can build upon what you've created.

Groom these people over years by delegating bigger responsibilities to them. Slowly but surely, remove yourself from the day-to-day decisions and operations, and see how they step up. Provide candid feedback, guidance and advice, playing more of a coaching and mentoring role.

As you release the reins to others, you’ll necessarily need to shift away from working "in" the business to working "on" or even “above” the business. This is the perfect time to analyze your systems and make sure your business is set up with the right foundations for succession. If you aren’t sure you have the right foundational systems in place (specifically, your legal, insurance, financial and tax systems), engage with a trusted advisor who can help you, like us, or even a team of advisors, such as our LIFTed dream team we’ve assembled.

Before I move on to the next section, I want to point out something important. Did you notice above I said “people” instead of “person” when identifying business successors? That was intentional. For the health of your organization, you need a full bench of empowered leaders, not just one person waiting in the wings. Cross-train multiple employees or family members, documenting processes and getting everyone aligned with your company's mission, values and strategic direction. This is not only smart, but ensures continuity across the organization.

The Hardest Part: Let Go of Control

One of the toughest challenges as an entrepreneur is letting go of control and relinquishing the power and final say you've grown accustomed to. You have to fight against instincts of micromanagement and trust that your successors can rise to the occasion when you're not calling every shot. If you don't relinquish that control in stages, the hardship and wisdom won't get transferred.

For the entrepreneur who hung their entire sense of purpose and identity on their business, this can be an incredibly difficult mindset shift. But it's a crucial one for the long-term viability of your life's work. After all, what good is all that success if it gets erased the day you're gone?

Does it mean you have to check out entirely someday? Not at all! You’ll begin by establishing clear key performance indicators (KPIs) to measure so you can ensure your team is hitting their metrics, and that you are able to monitor results even without being involved in the day to day. And, long-term, you may want to stay involved as an advisor, board member, or even just have your name on the wall. The point is to separate your identity and personal involvement from the company's ability to operate successfully.

Make Sure to Formalize Your Plan

So now you know the importance of replacing yourself, you’ve identified successors, and you're letting go of control. It’s important to formalize your plan so it will be honored and enforceable. How do you do that? Work with a professional. As a LIFTed Business Advisor, I can guide you to document your wishes correctly and encourage you to think not only about death and succession, but also about something you may have overlooked - your incapacity. You need a plan not only for what happens if you’re no longer around, but also what happens if you’re around but unable to participate in your business, whether it’s from a terrible accident or a serious illness. You’ll want someone on your side who can walk you through these difficult scenarios so you’re empowered to make the very best decisions for you and your business.

The LIFTed Business Advisor Who Has Your Back

As your LIFTed Business Advisor, I am committed to guiding you through the crucial process of replacing yourself as the leader of your business, allowing your business to carry on without you and make a difference in other people’s lives. Together, we'll create and refine your foundational systems then build a solid plan so your life's work thrives for generations to come. That’s the secret to business success, and that’s the gift you give to your customers, team members, and your loved ones.

Book a call here to learn more and get started today.

This article is a service of Personal Family Lawyer®. We offer a complete spectrum of legal services for businesses and can help you make the wisest choices with your business throughout life and in the event of your death. We also offer a LIFT Business Breakthrough Session™, which includes a review of all the legal, financial, and tax systems you need for your business. Call us today to schedule.

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

We offer a complete spectrum of legal services for business owners and can help you make the wisest choices on how to deal with your business throughout life and in the event of your death. We also offer you a LIFT Your Life And Business Planning Session, which includes a review of all the legal, insurance, financial, and tax systems you need for your business. Schedule online today.

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