GMB Ep #106: Business Exit Planning With Scott Snider

Many business owners eventually come to the point where they will be moving on from the business they passionately built over the years, and having a good exit strategy will help them navigate this important and intimate event in their journey of entrepreneurship. This week on Grow Money Business, we have a distinguished guest, Scott Snider, the President and the co-owner of the Exit Planning Institute (EPI). Scott is an industry leader, growth expert, and entrepreneur. Throughout the episode, he discusses how he assists company owners in developing substantial businesses while also aligning their own financial objectives and personal purposes. He also explains several vital factors that every business owner should consider when exiting their company.

Show Notes

[03:26] Current Role – Scott talks about his current role and how he helps with business exit planning.

[06:40] Perfect Exit – Scott shares his insights about the perfect exit to a business owner who is about to do so in a few years.

[10:23] Emotional Hurdles – Scott expresses his thoughts on managing psychology and people’s emotional hurdles along the business exit process.

[14:12] CEPA – CEPA is an acronym for Certified Exit Planning Advisor. Scott gives a brief explanation for the entire CEPA process.

[18:54] Exit Strategy for Young Entrepreneurs – Scott leaves a message to all the young business owners out there.

[20:21] Scott’s Story- Scott emphasizes the significance of not letting your business define you while sharing his story and takeaways from his past experience.

[29:35] Family Business – Explaining the nature of the family business, Scott shares how he and his father work together in their family business.

[41:43] Vision – CEPA is suitable for any advisor who wants to learn how to help an owner position their company for a successful and significant exit. Scott broadly talks about the vision of the Exit Planning Institute.

[47:43] Future Plans – Having explained the concept of the wealth gap, Scott explains the future plans for his business.

[53:33] Research Findings -Scott shares details about one of his recent researches and exciting factors they discovered through it.

Resources

Connect With Scott:

LinkedIn: linkedin.com/in/scott-snider-epi/

Website: exit-planning-institute.org

Facebook : facebook.com/exitplanninginstitute/

Instagram: instagram.com/exitplanninginstitute/

Mentioned in the Episode:

Certified Exit Planning Advisor: exit-planning-institute.org/program/certified-exit-planning-advisor/

Owner Readiness: exit-planning-institute.org/state-of-owner-readiness/

Every Family’s Business by Tom Deans: https://everyfamiliesbusiness.com/book/

Traction by Gino Wickman: https://www.audible.com/pd/Traction-Audiobook/B00A9ZO7T6

GMB Ep #105: All About Inflation

From October 2020 to October 2021, the Consumer Price Index for All Urban Consumers grew by 6.2 percent, which according to the Bureau of Labor Statistics, was the most significant 12-month gain since November 1990. In relation to this data, we have dedicated today’s episode to exploring more about inflation. Throughout this episode, Grant shares his thoughts about the impact of inflation on the present economic environment and numerous ways to mitigate the risk of inflation.

Show Notes

[04:21] CPI – Grant explains what CPI is and its relationship with the inflation rate.

[06:40] Inflation – Grant explains inflation in simple terms, pointing out several misconceptions about it.

[09:20] Will the History Repeat? – Grant analyzes and compares the current economic context in the US with the economy in the late 70s and early 80s.

[10:12] Gold and US Dollars – Grant broadly explains the evolution of the relationship between gold and US dollars.

[15:30] Present Economic Situation – Grant delves deeply into the current economic climate in the United States from various perspectives and then provides his thoughts on those observations.

[20:55] TIPS – Grant discusses how increasing your allocation to Treasury Inflation-Protected Securities can act as an inflation hedge.

[23:32] Series I bonds – Grant identifies investing in these types of bonds as an excellent alternative to hedge inflation.

[28:26] Investing in Gold – Grant discusses the potential of investing in gold and shares his thoughts on the matter.

[32:12] Equity – Grant identifies equities as an excellent inflation hedge in the long term.

[34:52] Asset Allocation– As a final remark, Grant discusses his ideas on asset allocation in general.

Resources

Bureau of Labor Statistics & CPI-U: bls.gov/cpi/

Treasury Direct & Series I Bonds: treasurydirect.gov/indiv/products/prod_ibonds_glance.html

GMB Ep #104: An Entrepreneurial Success Story With Lindsay Pinchuk

From developing an idea into a viable business to growing revenue, managing finances, and eventual exit and sale, the journey of entrepreneurship can be risky and fascinating. In the upcoming episodes of Grow Money Business, we will have individuals on the show sharing their exciting entrepreneurial stories. In today’s episode, Lindsay Pinchuk, an award-winning entrepreneur, joins us today to share her story of growing Bump Club & Beyond, one of the premier parenting communities in the country.

Show Notes

[03:36] Lindsay’s Story – Lindsay shares how she got the idea of starting her business and the exciting entrepreneurial journey that came with it.

[9.57] Structure – Lindsay explains how her previous work experience helped her in modeling her business structure.

[10:38] Monetizing – Whatever the business is, monetizing plays a vital role. Lindsay broadly describes how she utilizes the power of community for monetization.

[15:33] Taking the Shift – Lindsay talks about why she gave up her career for her business and what that transition looked like.

[17.33] Financing – Lindsay shares how she embedded the financial aspects, such as bookkeeping and having an accountant, into her business as it grew.

[20:00] Entity Structure – Lindsay shares with us some of the lessons she learned about setting up the right business structure and hiring the right kind of people for the business to flourish.

[28:54] Outsourced CFO – Lindsay talks about the financial support she got by outsourcing the CFO position, especially when creating valuations for the business.

[30.30] Acquisitions – Lindsay talks about how she received acquisition offers from three different entities for her business in 2018 and the process that followed.

[33.13] Message to the Entrepreneurs – Lindsay shares some lessons she learned from her business journey.

[42:30] Business & Personal Life – Lindsay shares her experience of managing personal finances and business as a mother.

Resources

Connect with Lindsay

Website: lindsaypinchuk.com/

LinkedIn: linkedin.com/in/lindsaypinchuk/

For more tips to help you start and grow your business, follow Lindsay on Instagram: instagram.com/lindsaypinchuk/

You can also grab some of her free guides:

5 Tips + Tools for Starting Your Own Business: view.flodesk.com/pages/6192a54d3a0e5bcf6f542228

Six Super Simple Tips for Social Media Success:view.flodesk.com/pages/61929cab839edddd7aa02829

Make sure you check out her podcast Dear Found Her, coming in January. Subscribe on Apple, Spotify, or wherever you listen.: podcasts.apple.com/us/podcast/dear-foundher/id1591976277

For further discussion with other founders, join the Dear Found Her Facebook Group: facebook.com/groups/dearfoundher/

GMB EP #101: Bitcoin ETFS Are Here

Bitcoin ETFs are here.

They’re not quite what you might think though. We walk through the details of how these beasts are structured and what you need to know before buying them in this week’s podcast episode.

Show Notes

[02:09] Recent Developments – Grant starts the discussion with a review of how and why cryptocurrencies grew in popularity over the last few years.

[04:37] Diversity of ETFs – How the diverse nature of the ETFs allowed them to utilize cryptocurrencies and the challenges associated with getting a cryptocurrency involved in a mainstream investment vehicle.

[08:12] Newcomers to the Market – Grant reviews a couple of newly introduced ETFs that are backed by Bitcoin and the pros and cons of investing in these compared to a traditional ETF.

[10:48] Futures Contracts – How the futures markets work and how they relate to the way crypto-backed ETFs function.

[14:36] Obscure Costs – Because of the way BTC-backed ETFs are connected to futures contracts, there are some costs involved in the process that may go unnoticed. Grant explains what investors need to keep in mind about the costs of the Bitcoin ETFs.

[16:41] Leveraged ETFs & Mutual Funds – Grant shares his thoughts on the functionality of the two investment vehicles and the similarities they share with Bitcoin ETFs.

[20:10] Bond Funds – Grant explains the difference between how bond funds operate versus investment vehicles based on futures contracts.

Resources

The Wall Street Journal – ETFs Are a Bad Way to Bet on Bitcoin:

wsj.com/articles/etfs-are-a-bad-way-to-bet-on-bitcoin-11635261745

The Wall Street Journal – Bitcoin ETF’s Success Could Come at Fundholders’ Expense:

wsj.com/articles/bitcoin-etfs-success-could-come-at-fundholders-expense-11635080580

GMB Ep #100: Reducing Small Business Health Insurance Costs With John Butler

Health insurance is an essential aspect in recruiting and retaining employees as well as sustaining productivity and employee happiness in a small business. In today’s episode, we have a distinguished guest, John Butler, joining us to take a deep dive into what business owners should know about health insurance. John is a national C-suite health benefits consultant, strategic coach, and the author of “Health Insurance Sucks,” the number one ranking book on Amazon in its category. Throughout this episode, John shares his insights on how businesses can reduce the cost of the health insurance they provide to their employees.

Show Notes

[02:22] John’s background – John shares his journey and what inspired him to write the book “Health Insurance Sucks.”

[05:25] Healthcare Costs – John explains his observations and findings on numerous methods to reduce healthcare costs.

[07:05] PEO – John describes how small businesses can benefit from Professional Employer Organizations.

[08:20] Custom Plan Solutions – With a comprehensive analysis, John points out how a custom health plan assures the highest quality service with a reasonable cost.

[18:56] Insurance Companies and Brokers – John talks about the relationship between insurance companies and brokers, and shares his thoughts from the perspective of each party.

[34:15] Federal Requirements – John explores the federal requirements and penalties related to employees’ health plans.

[38:54] Health Sharing Programs – John emphasizes the significance of health sharing programs.

[48:28] Current Social Context – The healthcare insurance industry consists of many complex layers. John shares his take on the healthcare plans in the current social context.

Resources

Connect with John Butler:

Website: jb-benefits.com/

LinkedIn: linkedin.com/in/jbbenefitsconsulting/

Mentioned in the Episode

Health Insurance Sucks – The Moral Case for Better Business Healthcare: goodreads.com/book/show/58502517-health-insurance-sucks—the-moral-case-for-better-business-healthcare?from_search=true&from_srp=true&qid=KIWCNRWz38&rank=1

GMB Ep #97: My Current Thinking on Cryptocurrency

A lot has happened in the cryptocurrency arena since we last covered this topic on Grow Money Business. Last week China announced that they are banning all activities in cryptocurrency while a month ago, El-Salvador announced that it would accept Bitcoin as a legal tender. In today’s episode, Grant shares his current thoughts and observations on cryptocurrency-related developments in the United States and around the world.

Show Notes

[02:46] Recent Events – Grant starts the conversation by briefly explaining the impact of both China and El Salvador’s approaches to using cryptocurrency.

[05:17] Benefits of Cryptocurrency – The benefits of cryptocurrency and why it is an appealing and convenient alternative for existing currency issues.

[07:05] Growing Chinese Economy – Grant compares the pace of China’s economic growth to the USA and reviews its intention of overtaking the USA as a world economic power.

[08:50] World Reserve Currency – Grant dives into the world reserve currency from numerous perspectives, including economic privileges that it opens for certain countries and why the USA needs US dollars as the world reserve currency.

[12:45] China and Cryptocurrency – The cryptocurrency activities in China before the government-imposed ban and Grant’s take on the reasons behind that government action.

[14:46] El Salvador and Cryptocurrency – El Salvador’s economic background and impacts on the country’s social context by encouraging citizens to transact in Bitcoin.

[15:52] Benefits and Challenges for El Salvador – The possible future occurrences related to cryptocurrency, as well as Grant’s take on the probable risks and benefits El Salvador may experience with the decision to accept cryptocurrency.

[18:40] Future Cryptocurrency Approach of Countries – The future measures of the world, and how China’s recent decision has knocked the price of cryptocurrencies.

[21:00] Increasing Credibility and Viability of Cryptocurrency – Grant explains the widespread adoption of cryptocurrency at the institutional level and how it has enhanced the credibility and viability of cryptocurrencies.

[22:58] Bitcoin and Ethereum – Cryptocurrency consists of numerous types of coins, including Bitcoins and Ethereum. Grant reveals his thoughts on the benefits and usage of each.

[28:01] Conclusion – Grant sums up his takes on recent changes of monetary and economic policies related to cryptocurrency and how countries will decide and set rules regarding cryptocurrency in the coming future.

Resources

Ep #65 – My Take on Bitcoin & Cryptocurrency

growmoneybusiness.libsyn.com/website/ep-65-my-take-on-bitcoin-cryptocurrency

Ep #64 – Where to Invest an Extra $50,000 Right Now

growmoneybusiness.libsyn.com/website/ep-64-where-to-invest-an-extra-50000-right-now

JPMorgan Warns Big Investors Are Suddenly Dumping Bitcoin for Ethereum Amid A $150 Billion Crypto Price Crash:

forbes.com/sites/billybambrough/2021/09/26/big-investors-are-suddenly-dumping-bitcoin

China’s top regulators ban crypto trading and mining, sending bitcoin tumbling:

reuters.com/world/china/china-central-bank-vows-crackdown-cryptocurrency-trading

GMB Ep #90: This is Exactly What to Do With Your Student Loans

With roughly 44 million borrowers that collectively owe nearly $1.7 trillion, student loans, the second-highest consumer debt category, has become something that’s pervasive for young people in the United States. We dedicated this episode to exploring some of the ways borrowers can make their student loan repayment manageable. Throughout the episode, Grant dives into how the interest rates and other characteristics vary depending on the lender, repayment options, income-based repayment, federal student loan forgiveness, and more. Stay tuned until the end of the episode, where Grant shares some strategies to reduce your monthly payments by suppressing your adjusted gross income.

Show Notes

[01:43] Background – The pervasive nature of the U.S. student loan programs and why they have become pervasive.

[05:10] Who Lent You the Money – Grant explains how the interest rates and repayment options may vary depending on the institution that is underwriting a student loan.

[07:38] Repayment & Refinancing – Once students have graduated and their forbearance period has finished, it’s time to paying back the student loans. Grant explores some of the options available for students at this point and how to decide whether to refinance with a private lender.

[10:19] Staying in the Federal System – Although it might make sense in some cases to refinance with a private lender, staying in the federal system has its own benefits. We talk about what these benefits are and how students can take advantage of staying in the federal system.

[13:07] Income-based Repayment – How the income-based repayment programs work, requirements for eligibility, and how they help people make their monthly payments manageable.

[18:13] Forgiveness – One of the features in income based-repayment is being able to get your debt forgiven after a certain number of years. Grant dives deep into how debt forgiveness works, how taxation comes into play at the point when the debt is forgiven, and what to consider when deciding whether to pursue forgiveness.

[22:32] Administrative Forbearance – As a part of the stimulus package introduced under the CARES Act, an additional forbearance period was introduced for student loans. Grant shares his thoughts on how to take this into consideration when making decisions about student loan repayment.

[27:15] Strategy for the Federal System – Grant shares some strategies for those who are in the federal system to make loan payments manageable by suppressing their adjusted gross income.

Resources

Episode #34: Why College Is So Expensive & How to Pay For It With Robert Farrington:

https://podcasts.google.com/feed/aHR0cHM6Ly9ncm93bW9

GMB Ep #89: Investing Myths #4 – U.S. Multinationals Provide Enough International Exposure

This week on the podcast, we’re continuing our mini-series dedicated to debunking popular misconceptions around investing by exploring the truth about whether U.S. multinational securities provide enough international exposure for your portfolio. Throughout today’s episode, we will dive deep into why international exposure benefits investors, how the differences of key aspects between the U.S economy and other countries influence the returns of an investment, methods of accurately evaluating the potential of foreign investments, and how you can avoid some of the biases that will negatively affect our financial decision making.

Show Notes

[2:50] Diversification – Why people feel that they have ample diversification in their portfolios and what they’re missing out on by only investing in U.S. corporations.

[04:00] U.S. Economy vs. Other Countries – Grant reviews some key aspects of world economies that make some other countries, such as China, grow rapidly in comparison to the United States.

[9:40] P/E Ratio – Grant explains what the P/E ratio is, how you can use cyclically-adjusted P/E ratio to assess the potential returns of stocks, and why it is better than just looking at the historical performance of stocks.

[16:14] Correlations – Securities markets have some trends and behaviors that show correlations between U.S securities and foreign securities. Grant talks about why investors should invest in international securities despite these correlations.

[21:05] Diversification of Currency – Grant explains why investing in companies that do business transactions in a diverse selection of currencies can be beneficial to investors in the long term.

[22:52] Dealing with Biases – How certain psychological characteristics of the human brain can get in the way of making savvy investment decisions and how to avoid these traps.

Resources

Morningstar: Does International-Stock Diversification Still Work?
morningstar.com/articles/1034112/does-international-stock-diversification-still-work

Hartford Funds Chart on the Performance of International Stocks:
hartfordfunds.com/dam/en/docs/pub/whitepapers/CCWP014.pdf

The Wall Street Journal – Why It Might Be Time to Invest in Non-U.S. Stocks:
wsj.com/articles/why-it-might-be-time-to-invest-in-non-u-s-stocks-11596900477

GMB Ep #86: Buying the Building Your Business Will Operate In With Justin Smith

Commercial real estate is something many investors seem to be interested in both as an asset class as well as a place for operating their businesses. Justin Smith, a broker, industrial advisor, and author, joins us today to talk about investing in commercial real estate. Throughout today’s episode, we explore what investing in commercial real estate is like as an asset class and what business owners who are considering buying buildings for their own businesses need to consider prior to day one and from day one to the day that the business no longer occupies the building. Stay tuned until the end of the episode, where Justin shares some strategies that help real estate investors with taxation.

Show Notes

[2:50] Justin’s Background – Justin has been working at Lee and Associates for 17 years, focusing primarily on industrial property. We talk about how Justin got into the real estate industry and what he learned through his long career.

[9:40] Buying a Building – Justin explains where to start if you’re looking for a building to buy and how the process differs according to the type of business, type of property, and whether it’s a lease or ownership.

[20:05] Transition From Tenant to Owner – Switching roles from the tenant to owner often calls for some construction work. Justin explains what potential property owners should know about working with contractors and other parties and maintaining compliance.

[26:55] Selling the Current Building and Purchasing the Next – What business owners need to think about when selling their current building to move to another and how their options differ based on liquidity, capacity, and capital.

[34:41] Potential Property – What makes a potential property or building an attractive investment in a portfolio, and what to look for in a potential real estate investment in terms of its cash flow.

[42:45] 1031 Exchange – Justin shares his thoughts on the future of the 1031 exchange, which gives business owners an option to avoid paying capital gains taxes when selling a property and reinvesting in similar properties.

[46:30] Tips for Pure Investors – Justin shares some tax strategies for people who are looking at real estate as a pure investment.

[49:00] Industrial Intelligence – Justin’s book, Industrial Intelligence: The Executive’s Guide for Making Informed Commercial Real Estate Decisions, came out last April. We talk about what he covers in the book and how it helps investors make smarter decisions for real estate investments.

Resources

Industrial Intelligence: The Executive’s Guide for Making Informed Commercial Real Estate Decisions: amazon.com/Industrial-Intelligence-Executives-Commercial-Decisions

Connect with Justin Smith

LinkedIn: linkedin.com/in/justinbsmith

Website: smithcre.com

GMB Ep #79: The Sacramento Startup Climate With Cameron Law

In recent years interest in entrepreneurship has been steadily increasing around Sacramento and around the country, leading younger generations to explore self-employment as a career option. In today’s episode, we have a distinguished guest who specializes in educating entrepreneurs and guiding them toward success. Cameron Law, Executive Director of the Carlsen Center For Innovation & Entrepreneurship in Sacramento, joins us today to talk about the startup climate in the region. Throughout the episode, we dive into how Cameron’s organization helps entrepreneurs, common mistakes entrepreneurs make, trends in the startup arena, and what entrepreneurs should know about creating successful business ventures.

Show Notes

[01:40] Cameron’s Background in Startups – Cameron shares how he got into the business world, his work in the venture capital arena, and his contribution to helping entrepreneurs thrive.

[06:18] Cameron’s Organization – Cameron dives into the mission of his organization, Carlsen Center for Innovation and Entrepreneurship.

[10:50] Generating Interest – Cameron’s organization works with students and people who are already in business. He talks about what his organization is doing to generate interest in entrepreneurship and to make its programs more accessible in the region.

[15:30] Evolution of Entrepreneurship – How the mindset of entrepreneurship has evolved over the years in the region and how recent trends in the markets and technologies have influenced it.

[28:48] Avoiding Mistakes – Common mistakes Cameron sees entrepreneurs make in their startups and bits of advice Cameron has for entrepreneurs to help them avoid their mistakes.

[35:39] Taking Risks – Entrepreneurs often have to take risks to make their new products or services successful. Cameron shares his take on what entrepreneurs should keep in mind about creating solutions that successfully solve a problem.

[38:11] Blockchain – Cameron shares his take on how cryptocurrencies and blockchain technology are being adopted in the region.

[46:05] Sports – Both Grant and Cameron were baseball players in college. They talk about how sports fit into their lives and how experiences from sports have influenced their professional skills.

[52:47] Get Involved – Cameron shares how you can get involved in entrepreneurial communities in your region and how you can utilize the resources available at the Carlsen Center for Innovation and Entrepreneurship.

Resources

Connect with the Carlsen Center for Innovation and Entrepreneurship:

Website: www.csus.edu/center/carlsen
LinkedIn: linkedin.com/company/carlsencenter