Strategies to Increase Net Income

WEALTH BUILDING SERVICES FOR BUSINESS CLIENTS …
Strategies to Increase Net Income

“The emphasis in strategies to increase net income is to focus on what you have and how you market that, or realize the value of it in a business rather than just continuing on the same path.

“A simple example would be: a client rents spaces at a large outdoor vendor market. One of the by-products of his business is parking. We convinced the client to charge for parking, and now he makes three times as much from parking as he does from the rental of spaces.

“Another example involved a divorced.couple. A client had a marriage that he felt wasn’t working and wanted to get out of the marriage but wanted to be fair to his wife and kids and asked me to help him work out an effective strategy, but not anything that would be deceitful to the other spouse.

“That was in December.

“Three months later, the wife came in and said she wanted the same thing and she wanted to work on doing it economically.

“There was a medical practice and a bunch of real estate investments. As a first step, we recommended the wife go back to college and finish her college degree so that she would have an education. She did that, and it took two and a half years.

“Next, we reallocated their investments from all growth to some cash flow, so they had some cash flow when the separation came about. We took the medical practice and we created clarity about what it was worth based on other practices.

Later, when it was time for the divorce, we knew what the practice was worth, we had the wife educated so she could go back to work, and we had the assets properly allocated so they produced income rather than being a growth investment, because we needed to make more cash available. This allowed them to have a successful divorce and actually a good relationship between both parties over a long period.”

~ Orlando Antonini

Win or lose, life’s an adventure

Financial accomplishments and difficulties alike affect the quality of the journey along the way. Do the every day stresses of life and business command so much of your attention, you don’t have time to design and follow a successful financial plan.

What keeps you awake at night? Do you try to push it to the back of your mind, hoping if you just don’t think about it, it will all work itself out somehow? Are you in control, or have circumstances taken control of you? How does that affect your potential for happiness?

In the CPA division of our business, we find clients often avoid having deep, personal discussions about their personal or business finances with a professional. Yet, that is exactly what they need to do. It doesn’t make any sense; it is a fear driven phenomenon. Deal with finances once a year when you get your taxes done and then run back over to the sand box and bury your head until you have to do it again a year later. Doing your taxes can be painful; it isn’t fun so of course you don’t look forward to it and try to put it off as long as you can.

But taxes and your particular tax situation is a very limited view of your financial situation. The negative feelings associated with confronting this very upsetting subject can block people from being creative and causative over their fnances.

You’ve got a road stretching out in front of you and it has some markers on it like owning your own home, having your own business, getting your kids into and through college, some number of vacations, and somewhere down that road there is a marker that reads “retirement”.

What is your strategy for making it to those markers, what is your plan for success and happiness. Do you have it all under control, and you’re confident having just yourself as an adviser? Or, worse yet, do you need someone’s advice but you never confront actually reaching out and asking for it? Is your head in the sand?

If it is, I can tell you right now that time is running through your symbolic hour glass and that is probably the sand your head is buried under. Someday there won’t be any sand left, your time will run out and where are you gonna be when you lift your head up and look around?

The smart thing to do is, outside of tax season go to your financial adviser – I’m not talking about a stock broker, I mean a real financial adviser. Someone who knows finances across the boards. Personal and business finances, strategies, resources. And, someone who has clever ideas about how to manage your resources to the greatest advantage.

My best advice to you is get yourself a financial adviser. Find someone who knows their stuff, who has a track record for success … someone you can trust. And open up to that guy. Tell him what is really going on, what you’re afraid of, what you hope for, what your needs are.

The bottom line is that successful person knows they don’t know everything and that they can’t do everything themselves. Find someone who has already done it, and get them to show you the ropes. You’ll save yourself a lot of time, trouble, and heartache along the way.

That’s it.

Antonini