In this episode, Brett shares why creating your exit and estate plans can help you chart a course forward and secure your financial future as a salon owner.
As salon owners, I bet you often find yourselves caught in a seemingly never-ending cycle of decisions to make and things to do. Sound familiar?
It makes me think of one of those carousels we had in the playground when we were kids. The ones that spin around and around.
Would you have ever thought to jump onto one of those while it was spinning? Well, of course not. That’d be way too hard.
So, if that were the case, if that was our only option, it would be easier for us to just go off and busy ourselves with other things off to the side. But planning for the future of your salon and executing those plans is the only way to slow the carousel down and turn the never-ending cycle into a direct path to your goals.
And so, for today’s episode, I want to talk to you about how you can slow life down and get started on planning for your financial future and your salon business.
Now, if you’re uncertain at all about where to jump in and begin planning for your future, I’m going to make this easy for you. My recommendation is that you should start at the end, with your estate plan.
Why? Because all salon owners need an estate plan. Creating or updating your estate plan is a specific project that you can do with a beginning and an end.
Plus, it will take you one step closer to your successful future. And in doing so, a successful estate plan achieves three important personal goals:
#1: Financial security for your heirs.
#2: The right person. Meaning you, rather than the state you live in, choose who receives your estate.
#3: Estate tax minimization. This reduces the government’s bite.
Now, in a similar way, a successful salon exit plan achieves three important owner goals:
#1: Financial security. The salon sale or transfer provides the amount of income you, the owner, and your family need after your exit from the salon.
#2: The right person. You, the owner, choose your successor, whether it’s children, key employees, co-owners, or a third party.
#3: Income tax minimization. This maximizes the amount of cash in your pocket as the departing owner.
So, in this episode, we’re going to explore why thinking about exit and estate planning in tandem like this really brings your entire financial picture into focus, so that you, the salon owner, can secure your financial future.
Looking for more tips on how to grow, scale, and ultimately sell your hair salon business? Check out our other Unchained From the Chair podcast episodes.