Month: June 2026

Preface: “The first responsibility of a leader is to define reality. The last is to say thank you. In between, the leader is a servant.” — Max De Pree

Building a Legacy That Lasts: Seven Decisions Every Business Owner Should Make Before It’s Too Late

In our previous blog article, we discussed why estate planning is far more than a legal exercise. It is one of the key final leadership decisions a business owner makes. It is an act of stewardship that protects a lifetime of diligent work, and the people who depend on the business.

Yet recognizing the importance of estate planning is only the first step.

The more difficult question asked less often is this: What does effective estate planning actually look like for a business owner?

After working with hundreds of entrepreneurs over the years, I have noticed something remarkable. The businesses that transition successfully are rarely the ones with the most assets. Instead, they are the ones whose owners made intentional decisions long before those decisions became urgent.

Benjamin Franklin wisely observed, “By failing to prepare, you are preparing to___________.” Few statements are more applicable to business succession.

Here are seven important decisions every business owner should thoughtfully consider.

Decision #1: Know What Your Business Is Worth

One of the most common questions I hear is, “What do you think my business is worth?”

Ironically, many owners have spent decades building their largest financial asset without ever determining its fair market value.

An objective business valuation provides much more than a number. It provides clarity.

It becomes the foundation for estate planning, gifting strategies, buy-sell agreements, succession planning, shareholder transactions, and retirement planning. More importantly, it helps owners make informed decisions instead of emotional ones.

As Peter Drucker famously said, “What gets measured gets managed.” Understanding the value of your business is one of the first steps toward protecting it.

Decision #2: Separate Ownership from Leadership

One of the greatest misconceptions in succession planning is believing that ownership automatically creates leadership. Business consultants and advisors know it does not.

Many children inherit businesses they have no desire to operate. Likewise, many outstanding leaders never become owners.

Great estate planning recognizes this distinction.

Ask yourself:

• • • Who should own the business? Then, who is best equipped to lead it? Are those the same people?

The answers may be different, and that is perfectly acceptable—provided they are intentional.

Decision #3: Prepare Leaders Before You Need Them

Merle Herr once wrote, “It’s the new, difficult, and inspiring that calls us forward.”

Businesses rarely survive because of one extraordinary individual. They thrive because leaders intentionally develop other leaders.

If something happened to you tomorrow, who could make difficult decisions?

Who understands your business? Who carries your values? Who would your employees naturally follow?

Succession planning begins years before succession occurs.

Decision #4: Put Agreements in Writing

Many business owners rely on verbal understandings.

“We’ve already talked about it.” “My children know what I want.” “My partner and I have an understanding.”

Unfortunately, difficult circumstances often reveal that memories differ.

Buy-sell agreements, shareholder agreements, operating agreements, and succession plans provide clarity during emotionally challenging times. They remove uncertainty and reduce the potential for conflict.

Clear agreements are not signs of mistrust. They are invaluable gifts to those who remain.

Decision #5: Build Liquidity into the Plan

One challenge many successful businesses face is that wealth is often tied up in the business itself.

A profitable company may have significant value while generating little liquidity for ownership transitions, estate obligations, or buyouts.

This is where thoughtful planning becomes essential.

Whether financing strategies, staged transitions, or other planning techniques, business owners should consider how future obligations will actually be funded—not merely hoped for.

Decision #6: Bring Your Advisors Together

One of the greatest mistakes I observe is that business owners often have excellent advisors working independently.

The attorney drafts legal documents. The CPA prepares tax returns. The financial advisor manages investments.

The banker provides financing. Each professional may perform exceptional work, yet no one is coordinating the overall strategy.

The strongest estate plans emerge when advisors work together with one shared objective: protecting the owner’s family, business, and legacy.

Decision #7: Communicate Your Vision

Perhaps the most overlooked element of estate planning is communication.

An estate plan should never become a surprise discovered in a filing cabinet.

Family members should understand your intentions.

Business partners should understand the transition process.

Key employees should understand their future responsibilities.

Communication cannot eliminate every challenge, but it can eliminate much of the uncertainty that often accompanies transitions.

As Stephen Covey wisely stated, “Begin with the end in mind.” That principle applies not only to leadership but to legacy.

The Greatest Asset You Leave Behind

Many business owners believe their greatest asset is their company.

I would respectfully disagree. Your greatest asset is the people your leadership has influenced.

The employees whose careers you helped shape. The customers whose trust you earned. The family whose future you protected.

The next generation of leaders you intentionally developed.

Businesses may eventually change ownership. Buildings may be sold. Equipment will eventually wear out. Even financial wealth will be distributed.

Character, values, and effective leadership, however, have the potential to endure.

A Final Reflection

There is an old proverb that says:

“A society grows great when wise men plant trees whose shade they know they shall never sit in.”

Business ownership is much the same. The finest entrepreneurs understand that their responsibility extends beyond quarterly profits and annual tax returns.

They recognize that true stewardship means preparing others to succeed long after they themselves are gone.

Estate planning is not about anticipating an end. It is about ensuring that everything you have spent your life building continues to bless your family, your employees, your customers, and your community.

That may be the greatest leadership decision you will ever make.

Preface: “Transfer wisdom before wealth.” — Ron Blue, Splitting Heirs

Why Estate Planning Matters More Than You Think

The greatest threat to many family-owned businesses is not competition, taxes, inflation, or economic recessions. It is a lack of appropriate preparation for the future.

Estate planning is one such consideration. Most business owners spend years, and often decades, building something that matters. They work, they sacrifice evenings and weekends. They weather economic downturns. They take risks that others are unwilling to take. They create jobs, serve customers, support their communities, and provide opportunities for their families and employees.

Yet surprisingly, many business owners spend more time planning next year’s budget than planning for the future of everything they have spent a lifetime building.

That is where estate planning enters the picture. Unfortunately, many people hear the words “estate planning” and immediately think of attorneys, legal documents, taxes, trusts, and paperwork. While those components are certainly important, they miss the larger point. Estate planning is not primarily about documents. It is about stewardship. It is about leadership. It is about ensuring that the people, values, and organizations that matter most continue to thrive when you are no longer able to lead them.

Imagine for a moment that a successful business owner unexpectedly passes away. The company has loyal employees, strong customer relationships, profitable operations, and a respected reputation in the marketplace. Yet within days, uncertainty begins to spread. Who has authority to make decisions? Who signs payroll? Who can access the bank accounts? Who owns the company? Will the business continue? Will employees keep their jobs? Will family members agree on the future?

These questions are not hypothetical. They occur every year in businesses across the country. In many cases, the problem is not that the business lacked profitability or opportunity. The problem is that the owner never developed a plan for transition.

For most entrepreneurs, their business represents far more than an income-producing asset. It often represents the largest portion of their net worth. It may include real estate, equipment, intellectual property, customer relationships, goodwill, and years of accumulated knowledge. Yet many owners have never clearly communicated what should happen to these assets if they are no longer present to oversee them.

One of the most important questions every business owner should answer is simple: Who will run the business?

Ownership and management are not always the same thing. A son or daughter may inherit ownership but have little interest in operating the company. A key employee may have the ability to lead but no ownership stake. A spouse may inherit significant value but lack familiarity with daily operations. Without clear planning, these situations can create confusion, conflict, and financial hardship at precisely the time when families are already facing emotional challenges.

Another critical question is: Who will own the business? Many business owners assume these issues will work themselves out naturally. History suggests otherwise. Family disagreements, unclear expectations, and conflicting visions have destroyed many successful companies after the founder’s departure.

For businesses with multiple owners, buy-sell agreements become especially important. These agreements establish how ownership interests will be valued, who may purchase ownership interests, and how those transactions will be funded. Without a clear buy-sell agreement, surviving partners and family members may find themselves navigating difficult negotiations during an already stressful period.

Business valuation also plays a vital role in effective estate planning. As a Certified Valuation Analyst, I often meet business owners who have a general sense of what they believe their company is worth but have never completed a formal valuation. Yet it is difficult for those left behind, to transfer, gift, sell, or protect an asset when its value is ambiguous.

A professional business valuation can provide clarity for: Succession planning, Buy-sell agreements, Ownership transitions, and Estate and gift tax reporting

Understanding the value of a business allows owners to make informed decisions rather than assumptions.

Warren Buffett once said, “Someone is sitting in the shade today because someone planted a tree a long time ago.” Estate planning is one of the most important trees a business owner can plant. The benefits may not be fully realized today, but future generations will experience the shade. Many business owners also underestimate the importance of organization.

If something happened tomorrow, could your family quickly locate: Your will and trust documents? Partnership agreements? Insurance policies? Tax returns? Banking information? Business records?

Often the most valuable gift is appropriate preparation for the future. A well-organized estate plan can significantly reduce stress and uncertainty for loved ones during difficult circumstances.

Of course, effective estate planning extends beyond legal documents. It also includes preparing people. Do key employees understand their responsibilities? Have family members been informed of the plan? Are successor leaders being developed? Are expectations clearly communicated?

Leadership succession should never begin after a transition occurs. It should begin years before. Business owners often spend their careers helping employees, customers, and organizations become their best. Estate planning is an opportunity to ensure that the fruits of those efforts continue long after they are gone.

At its core, estate planning is not an exercise in pessimism. It is an exercise in stewardship. It reflects a commitment to family. It demonstrates responsibility toward employees. It protects customers and business relationships. It preserves opportunities for future generations.

Most importantly, it allows business owners to be more faithful stewards of the resources entrusted to them. The reality is that every business will eventually experience a transition. The only uncertainty is whether that transition will be planned or unplanned.

The question is whether you will be prepared. Your family, your employees, and your legacy deserve nothing less.

Preface: “The estimated average amount changes monthly. For example, the estimated average monthly Social Security retirement benefit for January 2026 is $2,071.”– https://www.ssa.gov/faqs/en/questions/KA-01903.html

Social Security – Claiming Retirement Benefits

The following is the second in a series of blog posts on the subject of Social Security. The first installment, which can be found here:

• • • Reviewed the history of the Social Security program
    • Listed the different types of Social Security benefits

This second installment will discuss:

• • • When you can claim Social Security retirement benefits
    • The amount of your Social Security retirement benefits
    • Working while receiving Social Security retirement benefits

Future posts in this series will address:

• • • Claiming survivor and family member benefits
    • How earned income is taxed to fund Social Security
    • How Social Security benefits are taxed
    • Estimating Social Security’s returns on investment

Social Security Credits

To claim Social Security retirement benefits, you must have accumulated at least 40 Social Security “credits”. This really just means the Social Security Administration (SSA) wants to make sure that you worked for a non-trivial amount of pay for at least ten years. The credits are counted as follows:

• • • Anyone born in 1929 or later needs 40 credits to be eligible for retirement benefits.
    • A maximum of four credits can be accumulated per year.
    • In 2026, you receive 1 credit for each $1,890 of earnings, up to the maximum of 4.
    • Each year, the dollar amount of earnings needed for a credit goes up slightly.

Once you’ve reached 40 credits, you are eligible to claim benefits when you reach retirement age. There is no partial credit for less than 40 credits, nor is there any particular significance to attaining more than 40. The dollar amount of your benefits will be determined by a graduated formula that we discuss in more detail in the next section.

If you are not sure whether you have accumulated sufficient credit or you want to see what kind of monthly benefit you can expect to receive, you can find all this out by creating a free and secure account with the SSA at https://www.ssa.gov/myaccount/. You will not need to give the SSA any information about your work history. They already have it. Once you create the account, they will make this information visible to you.

The Amount of Your Security Retirement Benefits

The year in which you claim your Security retirement benefits, a monthly benefit amount is calculated based on your earnings history. The SSA then pays you monthly benefits for the rest of your life, starting with this amount and adjusting it each year for inflation.

The monthly benefit amount is calculated thus:

• • 1. Earnings from all the years you worked are converted into present-year dollars.
    2. The 35 highest-earning years are selected. Income above the annual threshold is ignored. For 2026, the threshold is $184,500.
    3. A monthly average is computed.
    4. The monthly average is divided into three segments. For 2026, these segments occur at $1,286 and $7,749. These are known as “bend points”.
    5. Income up to the first bend point is multiplied by 90%, above the first and up to the second by 32%, and above that by 15%.
    6. Add these three discounted amounts together, and that is the baseline for your monthly benefit.

This baseline amount may be further modified depending on how old you are when you claim, as follows:

• • • Current law defines full retirement age (FRA) for people born in 1960 and after as 67. If you claim retirement benefits at FRA, you receive 100% of the benefit as calculated.
    • If you claim retirement benefits before reaching FRA, your benefit is a reduced percentage. The reduction is 6.67% per year for each of the first three years and 5% per year for the remaining two years. The earliest age for claiming retirement benefits is 62, in which case you will only receive 70% of the amount.
    • If you wait past FRA to claim the benefits, they are increased above 100% by 8% a year up to a maximum of 124% if you claim at age 70. There is no additional benefit to waiting beyond age 70 to claim.

So, if you wait until you are past age 62 to claim retirement benefits, you will have greater benefits going forward. However, you will miss out on the benefits you didn’t receive during the years you were waiting.

The benefits you get the year you claim are then adjusted for inflation each year.

Working While Receiving Social Security Retirement Benefits

If you continue to work and earn income after you begin receiving Social Security retirement benefits, your retirement benefits may be reduced. For this purpose, “earned income” includes wages and self-employment income. It does not include passive or investment income, or income from annuities, pensions, IRAs, or other retirement benefits.

If you are younger than FRA, you are subject to a limit above which your retirement benefits will be reduced. For 2026, that limit is $24,480. If your earned income for the year is within the limit, your Social Security retirement benefits will not be reduced. Every dollar you earn over the limit will reduce your benefit total by 50¢ for the year.

For the year in which you reach FRA, the limit is $65,160. However, the limit only applies to earnings during the months before you reach FRA. Every dollar earned above the limit reduces your benefits by 33¢ for the year.

If you are older than full retirement age (FRA), no amount of income you earn will reduce your Social Security retirement benefits.

Earned income during years you receive Social Security retirement benefits is still subject to FICA. If your earnings at this time are high enough, the SSA may recalculate and increase your baseline benefit.

In the next post we will explain who can claim survivor and family member benefits and how they are figured.

Preface: “There is a point of complexity beyond which a business is no longer manageable.” — Peter F. Drucker, Management: Tasks, Responsibilities, Practices

The Technology Labyrinth: Why Business Systems Become Hard to Navigate

Most business owners do not set out to create a complicated technology environment. It happens gradually. A company starts with accounting software, adds payroll, implements a customer relationship management system, adopts a project management platform, integrates an e-commerce solution, and then purchases specialized applications to solve specific operational challenges. Each decision makes sense at the time. However, years later, many organizations find themselves operating inside a technology labyrinth — a maze of disconnected systems, duplicate data, manual workarounds, and reports that do not always agree.

As a CPA, I have observed that most businesses do not have a technology problem. They have an integration and decision-making problem. The issue is rarely the software itself. The challenge is that information becomes scattered across multiple platforms, requiring employees to spend valuable time entering data, reconciling reports, and determining which numbers are accurate. What begins as a collection of helpful tools can eventually become a maze that makes it harder for leadership to see the business clearly.

The true cost of a fragmented technology stack extends far beyond monthly software subscriptions. Employees spend hours manually transferring information between systems. Accounting departments perform reconciliations that should occur automatically. Managers receive conflicting reports from different departments and must spend time validating data before making decisions. What appears to be a technology issue often becomes a productivity issue, a reporting issue, and ultimately a profitability issue.

Many businesses eventually recognize they are stuck in this labyrinth and decide that a software migration or enterprise resource planning implementation will provide the way out. Yet research consistently shows that software migrations are among the most difficult business initiatives to execute successfully. Industry studies have found that many ERP implementations exceed their original budgets or timelines, while Gartner has reported that many organizations fail to achieve the business objectives that justified the project in the first place. These statistics are revealing because they demonstrate that software alone is rarely the solution. Success depends on clear business processes, reliable data, employee adoption, and careful planning before the migration begins.

Accounting departments are often the first to recognize when the technology labyrinth is becoming difficult to navigate. The accounting team sits at the intersection of nearly every business process. Sales transactions must ultimately be recorded in the financial system. Payroll information must be reconciled. Inventory activity must align with accounting records. When systems fail to communicate effectively, accounting becomes the department responsible for finding the path through the maze and correcting the discrepancies. Over time, finance professionals spend less time analyzing business performance and more time untangling data issues created elsewhere in the organization.

Business owners frequently ask what software they should purchase next. In many cases, that is the wrong question. A more productive question is whether existing systems are working together effectively. If employees rely heavily on spreadsheets to move information between applications, if customer data exists in multiple locations, or if monthly financial reporting requires extensive manual intervention, the organization may not need another application. It may need a clearer map of the systems it already owns.

The most successful businesses are not necessarily those with the most sophisticated technology. They are often the organizations that have created a reliable flow of information throughout the company. Their systems support decision-making rather than complicate it. Management can access timely and accurate information, employees spend less time performing repetitive administrative tasks, and accounting teams can focus on providing insights rather than correcting errors.

Technology should create clarity, not confusion. Before investing in another application or undertaking a major software migration, business owners should take time to evaluate how information moves through their organization. The greatest challenge may not be finding better software. It may be understanding the maze that has quietly formed over years of well-intentioned decisions.

A technology labyrinth rarely appears overnight. It is built one software decision at a time. The good news is that businesses can find their way through with unified processes, improving integrations, and aligning technology decisions with financial reporting and workflow needs. In today’s business world, navigating the technology labyrinth may be one of the most important steps a company can take toward better decision-making and sustainable management of growth.