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Implementing the right strategies means you are more likely
to be free of worries and able to concentrate on your business
goals and dreams.
Part of what you'll need to think about will be positive — like rewarding
your employees and top executives with benefits and bonuses. But you should
also be prepared for the negative, like employee disability or the death
of a business partner.
Executive Compensation
An effective executive compensation plan is a way to tell your most important
people that you rely on them — and, although it may surprise
you, that's what motivates them to stay. A study by the American Management
Association found that the majority of senior employees who change
jobs do so to take on more responsibility. These employees want to
feel that a company recognizes the vital role they play. Creative executive
compensation sends that message loud and clear to those who matter
most to you.
Business Protection
Illness or injury, whether your own, a business partner's, or an employee's
can derail your business. The solution is to prepare now, especially
by considering the various disability plans that can help protect your
business today and in the years to come.
You may think you're all set because of disability income insurance through
Social Security and Workers' Compensation. But Social Security probably
won't provide enough to maintain the standard of living that you, your
family, or your employees and their families are used to — and
that's if you qualify. Workers' Compensation doesn't cover sickness or
off-the-job injuries, and payments are low and usually last a few years
at most. So take steps now to avoid trouble in the future.
Retirement Plans
The best retirement plan for your business depends on how your company
is organized — whether it's a proprietorship, partnership, or corporation.
When it comes to choosing a plan, think about how you'd like to fund
the plan, how much you and your employees want to contribute, how much
you will be required to contribute for employees, and whether you want
to take on some of the bookkeeping tasks yourself in order to reduce
costs and increase your choices.
Some of the products you might be familiar with are:
401(k)s
Qualified
and Non-Qualified Plans
Employer-Funded
Plans
IRAs
Split-Dollar
Plans
Executive
Bonus Plans
Deferred
Compensation
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