It takes time, effort and a lot of energy to keep a business up and running, especially in the early days when a company is just starting out. But to make money, business owners also need to have money in order to take care of inventory, employees wages, benefits and a whole host of other necessities that help to keep the doors open.
Oftentimes, though, the expenses can be overwhelming, where running a business can feel more like a circus act – serving as the lion tamer, tight rope walker and juggler all rolled into one.
"Leveraged planning puts borrowed funds to work, whether for business or personal needs."
Leveraged Planning® solutions, however, provides another set of hands by putting borrowed funds to work. These borrowed funds, typically in the form of life insurance, can pay into various cost considerations, thereby helping to keep a business' wheels greased.
The key element to business success is growth, and you can find that through leveraged planning. Here are several ways in which leveraged planning can assist with building your company's potential:
Frees up resources
Resources by their very nature are finite, as only so much can be devoted to a company's cost considerations. By borrowing funds to help pay for future life insurance, buy-sell or other planning needs, a business owner can see financial resources freed up to be put to a broader use. It can also allow a company to employ more workers if a job requires more manpower.
Funds employment benefits
Though there are a variety of social and physical well-being advantages to working for a living, most people are in the labor force to put food on the table. However, employee benefits are almost as important and encourage workers to be as productive as possible. According to a poll done by the Society for Human Resources Management, health benefits are among the top factors that keep employees satisfied. Using Leveraged Planning® solutions can free up resources to fund employee benefits, thereby increasing worker engagement and encouraging job seekers to apply.
Stimulates income creation
When employees are motivated to reach for the stars – i.e. being actively engaged in creating a quality product or service – success often follows, typically in the form of added income. Leveraged planning helps to stimulate income creation by funding the benefits that many key employees want most, like life insurance or retirement planning. Because business owners know that benefits are fundamental to employee satisfaction, 40 percent are willing to negotiate the perks that staff most want, according to a recent poll conducted by staffing agency Robert Half.
Can help with personal expenses
Company owners may identify themselves as entrepreneurs by trade, but they're first and foremost people, with personal obligations that everyone else has. Borrowed funds through Leveraged Planning® can go to bat for individual cost concerns, particularly future expense concerns, providing the security and rest assuredness that personal financial needs are taken care of. This can allow you to put more of your energies and focus on your company to help further its bottom line.
Pays for itself
Because Leveraged Planning® is fueled through borrowed funds, the loan has to be paid back in the prescribed lending window. In addition to carrying an affordable interest rate, leveraged planning is self-completing. In other words, the loan is paid back through the income that's generated under the program. Plus, the loan interest is usually a tax-deductible business expense, leaving plenty of earnings to take care of the loan's balance.
These are just a handful of the ways in which Leveraged Planning® can enhance a business's success. For more information, be sure to touch base with your financial services professional.