The transition from W-2 employee to business owner brings unexpected financial challenges that many entrepreneurs aren't prepared to handle. While most business owners dutifully secure a CPA for tax preparation, they're missing a crucial piece of their financial team: a dedicated financial advisor who can transform their business cash flow into long-term wealth.
Financial experts Sean Williams and Rachel Walker reveal the strategies that allow small business owners to access the same financial advantages as Fortune 500 companies. They break down the essential components of proper cash flow management – including how to forecast 6-12 months ahead, segment expenses strategically, and create that critical 3-6 month emergency fund that prevents panic decisions during lean periods.
Beyond day-to-day operations, they explore how business owners can leverage tax-advantaged vehicles like retirement plans and Index Universal Life policies to simultaneously reduce taxable income while building wealth. These financial tools create tax-deferred or tax-free growth opportunities that most entrepreneurs miss when focusing solely on their business operations.
Perhaps most valuable is their guidance on succession planning through tools like buy-sell agreements and key person coverage. These strategies ensure your business maintains its value and continues operating smoothly even after unexpected events like disability or death. As Williams emphasizes, "If you don't plan to succeed, you're planning to fail."
Whether you're generating $100,000 or $1 million in revenue, implementing these financial strategies creates the foundation for true independence – where work becomes a choice rather than a necessity. Don't wait until tax season to think about your financial future. Connect with a financial advisor who can help articulate and achieve your vision while you focus on growing your business.
If you need assistance in obtaining funding, email us at podcast@tdjequityfundinginsiders.net. Tell what the scope of funding is needed and the amount. A broker will contact you to discuss your funding needs. And remember, at TDJ Equity Funding, we do not force your funding needs into a lender's box but find a lender's box that fits you!
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:13):
Ready to get the inside scoop on equity funding?
Tune in to TDJ Equity FundingInsiders Podcast for an in-depth
look at what it takes to accessfinancial capital and maximize
your investments.
Hear from experiencedprofessionals, including bankers
, underwriters, loan officersand industry experts, as they
(00:36):
share their unfiltered storiesand valuable lessons on securing
funds.
Speaker 2 (00:51):
We want to first of all thank everybody for coming
out to our Giving Power to theBusiness Owner webinar series
and this is ours that we'rehaving today.
Now let's talk a little bitabout it.
Some of you guys have beenfollowing us for a while.
We really deal with businessowners is our main thing, but we
also found out a lot of ustransitioned from being a W-2
into being a business owner andwe have a tendency to don't look
(01:13):
at the things that probably wastaken care of when we were
actually as a W-2 employee.
That is why this is important.
Some of those things could behow do you actually set up where
you can have your money saved,or what you're working for
towards your retirement, towardsyour goals, or what you want to
do for college.
All of this stuff can be playedout as a business owner, but
(01:36):
most of us do not know how to dothat.
Two guests today that are comingin to actually talk to us as
business owners, asentrepreneurs some things you
need to have in place as you doyour business, on cash flowing
and things of that nature.
They're here and if you allhave any comments, like we told
(01:56):
you before, always send thecomments in to us and we'll
actually get it to them as well.
So, to start the show off,we're going to.
First of all, I would like forSean Williams to introduce
himself and then, after that,rachel, if you would, when he
finished, introduce yourself,and then we'll go into our
questions and answers.
Okay, all right, sean, if youwould again thank you for being
(02:18):
here and, if you would, let'stell our audience a little bit
about yourself.
Speaker 3 (02:23):
Well, jackie, thank you for having me today.
I'm excited to be on the showand I hope I add tremendous
value for your business owners.
I've been in the industry for20 years and one of the neat
things about what I do is helpbusiness owners be the best
versions of themselves.
Oftentimes, business ownersdon't realize the power that
they have or the impact they canhave on not only their own
(02:43):
individual family but thecommunity at large, and so, in
large part, I'm an aide andassistant.
I help people become the bestversions of themselves and do
realize their potential so thatthey can do all the wonderful
things they want to do.
So we can take a small businessowner that only has themselves,
or maybe two or three employeesor 1099 people, and give them
(03:06):
the same benefits, the sameopportunities as if they were a
Fortune 500 company, so beingable to show business owners how
they can take advantage of taxcode and also take advantage of
various financial products sothat they can plan their future
just like they were running ahuge corporation.
Speaker 2 (03:24):
All right, that is wonderful and that's what we
want to talk about a lot today.
So we'll get more into thosequestions.
Thank you so much, ms Rachel.
If you would, let's get anintroduction of you as well.
Speaker 4 (03:35):
Sure, absolutely.
Sean did a great job atsummarizing what we do, but my
background is mostly in realestate investing, wholesaling,
flipping, all that fun stuff somy goal is to really connect
with business owners as well asreal estate investors and being
a guiding light for them and howto maximize the use of their
money and all their otherresources, so I'm hoping we can
(03:59):
definitely dish out some reallygood, helpful tips today.
Speaker 2 (04:02):
Okay, great Again.
Thank you for being here aswell, and both of you.
We are really excited to haveyou guys helpful tips today.
Okay, great Again, thank youfor being here as well, and both
of you are.
We are really excited to haveyou guys with us today.
Something we've noticed as loanbrokers and I know we've had
some discussions of this is thatwe don't see what a business
owner understand cashflow.
They have a little struggle ofwhat that works and I wanted you
(04:23):
to give like some strategiesyou could recommend for managing
cashflow and ensuring theliquidity of their business.
Can you give us some pointerson that?
Speaker 3 (04:35):
Definitely, having cashflow is the heartbeat of the
business.
You know, everybody wants notonly to survive but to actually
thrive, and being able to handlethe cash flow, or whenever you
set up the cash flow system,that's the most important thing.
And so, first of all, what youwant to do is set up a set of
circumstances where you forecastwhat you're going to have six
(04:57):
to 12 months out.
So if you know what you havecoming in, you want to be able
to determine okay, consistently,I have this fixed amount coming
in.
You want to be able todetermine, okay, consistently, I
have this fixed amount comingin.
I have these.
And so whenever you cananticipate what you're doing,
you want to anticipate it, soyou can look forward six to 12
months out.
Second thing that you want to dois you want to segment your
(05:18):
expenses.
And what I mean by segmentingyour expenses?
You want to understand what's afixed expense and what's a
variable.
A fixed expense is the samemonth after month, after month
after month, but when you have avariable expense, it could be
the power bill, and so duringthe winter is, if you're in a
(05:40):
cold environment, it's much moreexpensive than in the summer
because of the AC.
So when you have a variable,you want to distinguish what's a
fixed amount, what's a variableamount.
And then, lastly, along thatsame line, you want to look at
what's discretionary as far asthe things that you're spending
money on.
So if things get tight, you candecide what can I cut off or
what can I cut back on first,and you will start with those
(06:03):
discretionary things.
What can I cut back on first,and you will start with those
discretionary things.
The next step is that you wantto create what I call a
liquidity buffer or an emergencyfund.
And a liquidity buffer oremergency fund, in an ideal set
of circumstances, you have threeto six months worth of expenses
set aside so that if things gotlame, you get into trouble, ran
into difficulty financially.
(06:25):
You've got a buffer, some roomto breathe before you have to
hit the panic button.
Another aspect of it is youwant to control your spending by
looking at how do I speed up myreceivables and slow down my
payables, and you want tonegotiate what those favorable
terms for whenever you'renegotiating inflows and outflows
(06:48):
.
So you want to stay ahead ofthat.
And then, third, the next thingthat you want to do is just
stay on top of it and revisitand review so that you can just
regularly to make sure that thatcash flow is seamless Whenever
you have issues.
A lot of times you didn't plan,and if you don't plan, you plan
to fail, and so what you wantto do is have a structured plan
(07:10):
in place so that you have abetter ideal, so that when
difficulty comes, you're in agood place and able to adjust as
you need to okay.
Speaker 2 (07:19):
So with that said, you can actually a business can
actually come to you and you canhelp get us set up with all
these that you're naming.
Am I correct, correct?
Okay, so that's what.
Let's talk a little bit on it,because I think it's.
I mean, you said some reallygreat things as business owners,
we don't even look at.
I think we don't realize, uh,mr shun, that we can't.
(07:41):
We, we can have the same setupa corporation has, but because
we're a small business, we wantto make it half.
A corporation has, but becausewe're a small business, we want
to make it half a million.
I don't think we think alongthose lines.
So that's why I thought it wasso important.
And let me ask you this so yourtitle, because people want to
look for it, it won't come toyou, but will you fall as a
financial advisor or where wouldyou fall at with that?
Speaker 3 (08:03):
Correct, my title is financial advisor.
Speaker 2 (08:06):
Okay, compared to a lot of times, we just think we
have to go to a CPA.
Now I know that's a littledifferent, but if you could
explain what's the difference ofgoing to a CPA compared to
going to someone like afinancial advisor like you,
because all we know is mainlyCPAs.
Speaker 3 (08:22):
Okay.
So typically I usually partnerwith CPAs.
So from my part, I'll help youwith the cashflow, understanding
the budgeting.
Okay, have you look at?
Okay, this is my income, soeverybody has income and they
got outgoes.
And so when you look at incomeand outgoes now what we're
trying to figure out is how dowe begin to pinch off enough so
(08:43):
that I'm saving enough eachmonth to where I can get this
emergency fund set up?
Do I have three to six, threeto six months worth of room to
breathe that kind of situation?
And then the other part is wewe also typically partner with
CPAs and look at the most taxadvantage ways that you can.
It's not how much money youmake oftentimes, but it's how
much you get to keep.
(09:04):
So we help you play the taxgame and so I partner with the
CPA to bring about thoseoutcomes.
Speaker 2 (09:14):
So what I'm sure want everybody to kind of notice.
I know pretty much from myexperience of being in business
how you guys work together andthat's what they have to know.
You can't just have if yourbusiness is growing.
Now, mr William, you tell me ifI'm wrong, but if your business
is growing and your revenue isgrowing at some point, you can't
just have a CPA, you have tohave a financial advisor to come
(09:34):
in and work toward that.
Now, am I right or wrong?
Is that how you got to work alittle bit?
Speaker 3 (09:40):
That's correct.
So say, for instance, a CPAknows the tax laws but they
don't typically sell or use theproducts to implement the
strategies.
So they might tell you hey,you're making a good money, we
probably need to do A, b and Cso we can lower your taxable
income, but they don't help youput those structures in place.
(10:00):
So we would actuallypotentially put the retirement
plan in place so that that moneythat you're now making can go
to that tax plan and now yourtaxable income is going down.
So we put the actual stuff inplace, whether it's a simple a
SEP, single 401k.
So we actually put the actualproducts in place so that you
(10:21):
can execute some of thestrategies that the CPA might
help you with.
So one of the things that youcan do as a business owner let's
say French, you were talkingabout a business owner that's
generating half a milliondollars worth of revenue One of
the things we need to do is lookat how do we make sure that if
he would have hit a lean stretch, or she would hit a lean
stretch, how can we createliquidity moving forward based
(10:43):
on the money that they'recurrently making?
So we would introduce differentstrategies that they can
implement so that if things wereto slow down, that they still
don't have to panic, because nowthey've got the emergency fund,
now they've got money inretirement, now they might have
some other vehicles that areadding additional protection to
their income, and so there's alot of different things that we
(11:05):
would sit down with them anddiscuss.
Speaker 2 (11:07):
And that's what we don't realize as business owners
.
That's why it's so importantfor us to have these type of
seminars or series, because youguys come out and let them know.
Listen, it's not trying to sellyou anything, but if you're
going to grow and continue togrow, it's certain things you
need to be in place.
Now let me ask you this to growis certain things you need to
be in place.
Now let me ask you this howmuch revenue you think a person
(11:29):
needs a business should have to?
We know CPAs you start off withyour CPA but how much revenue
you think a person should haveto actually start getting a
financial advisor?
What should my revenue looklike?
What do you think?
Speaker 3 (11:41):
So it depends on the advisor and who he wants to work
with.
So I have a heart to work witha lot of disadvantaged people
who are just getting started,because I think it's just as
valuable a person who's making$100,000 a year as somebody
who's making a million dollars ayear, and so I try to give
people a platform they can getin where they fit in.
(12:02):
People a platform they can getin where they fit in.
So the ideal set ofcircumstances is sit with them,
hear what their heart is, vision, purpose, goals.
When I'm looking at that cashflow now, I can say, okay, based
on having a healthyrelationship, you need to have
maybe 10 to 15% of your incomeor your revenue going to your
retirement so that when you getto whatever age now because we
(12:26):
started with the end in mind nowwe can kind of anticipate what
we need to do moving forward.
So the sooner we can gettogether and start the planning
process, the better.
Speaker 2 (12:36):
Exactly, and this is for our owners to know.
This is the ugly part.
I wish I would have startedwith one of you all when I
started my business, at least ayear in, because I see now,
hindsight, now that I do have it, that it would have saved so
much headaches because you guysknow how things are going to
look down the line based on ourcompany, because that's what you
(13:00):
do.
So I really want and we'rereally pushing it for people to
at least reach out and see whatyou can do for them.
Do not just sit there waitingor dealing with the problems on
your own.
You don't have to do that.
So what I do like.
Also, we're leading into whereyou talked about the taxes.
That's another thing.
People don't realize how youcan help them with the tax
(13:21):
planning.
So, ms Rachel, I have aquestion for you no-transcript.
Speaker 4 (13:33):
Sure.
So I know everyone loves to paytaxes, right, but we don't give
tax advice, but we dospecialize in strategies that
work alongside CPAs or taxprofessionals, making sure we
help reduce taxable income andincreasing financial efficiency
legally but strategically mostimportant important.
(14:00):
So one of our favoriteapproaches we use a tool called
an index universal life, alsoknown as an IUL policy.
So these are structured to growcash deferred.
They offer tax-free access ofincome through policy loans and
you can pass this on tax-free toa benefit of your heirs.
So for business owners, thesetypes of strategies can serve
(14:21):
dual purposes they providefuture sources of tax-free
supplemental income while alsomaking sure that we're creating
liquidity for retirement,succession planning and other
long-term goals, such asinvestments, buying more real
estate, whatever you're lookingto do long-term goals such as
investments, buying more realestate, whatever you're looking
(14:41):
to do.
While we're not trying tonecessarily beat the tax code,
we are using it as it wasdesigned for business owners who
are moving intentionally andplanning ahead.
Speaker 2 (14:48):
So basically, again, what you are saying that I'm
hearing is that you work alongwith that tax preparation area,
so we don't have to try toreally just rely on one person,
but we have someone that's partof the team, that know what
we're looking like.
They can kind of help usstrategize a lot better than
just having our tax prepared.
And that's it right.
(15:09):
That's what.
Basically what you're sayingExactly.
Speaker 4 (15:11):
Okay, we have a lot of conversations with CPAs you
know, we create a team for thatbusiness owner.
Speaker 2 (15:19):
All right, and you can provide that, and so that's
why I say it's just so simplehow much you guys save if
business owners I deal with alot when people come to us as
loan brokers, and you all knowthis they're already distressed
and they're looking for money.
The thing is there's somethings they could have had in
place where you won't be such ina rush or panic for money if
they would have worked with afinancial advisor starting out.
(15:41):
But one of the girls here inthe office we're talking about
you guys had made the commentWell, you know, financial
advisors has the stigma of Ihave to have a lot of money to
talk to them.
That's something, and I say youknow what.
You're right.
So that's something you alllike.
I think you kind of touched on alittle bit, Mr Williams.
But if you would, Rachel, touchon a little bit of how it's
(16:05):
easier to work with you all atany stage, like he said, that's
working with you guys, Can youkind of explain a little bit how
easy it is to work with you all?
Speaker 4 (16:13):
Sure, I mean you have to start somewhere.
We're here to talk to you andget a better understanding of
what you need and see how we canbe valuable in that area.
So I think if you have theintention of being a business
(16:35):
owner in going to be is going tocome to fruition because you've
put the right people in placeto make sure we can work in your
business while you work on yourbusiness and I love that.
Speaker 2 (16:44):
That's what we need.
So, Mr Williams, let me knowhow do you assist in setting up
a retirement or an extrastrategy for a business owner?
How do you do that?
Speaker 3 (16:56):
Anything.
When you're talking aboutlong-term planning and looking
down the road, you have to startwith the end in mind.
So the first thing I do, Iwould sit with the business
owner and say okay, what wouldretirement look like?
What would your exit strategylook like?
What would you like it to looklike?
Sometimes that means you may beable to turn the business over
to a family member.
They're going to buy thebusiness from you.
(17:18):
Maybe you're in a set ofcircumstances where you have a
competitor.
You've been in the industry along time but whatever you do,
there are competitors who wouldlike to purchase your business.
So that might be an option.
There are some sort ofcircumstances where people say
you know what I want to do apartial purchase.
I might only want to work oneday a week, two days a week.
(17:40):
I don't want to grind as hardas I have been, but I don't want
to sit at home and do nothing.
So it really depends on theemotional and psychological
setup of what you would like todo.
So we just talk about yourgoals, what's important to you.
From there, it determines whichtype of retirement plan we
might look at, because now wemight look at a time horizon,
(18:02):
based on a five or 10 or 15 or20 year plan.
And so now we have to decidebased on your risk tolerance,
your time horizon OK, this ishow much money you have to put
into a plan.
So we would choose a planthat's based on your goals of
when you want to leave, and sothat impacts what type of plan
that we choose, and so it's avariety of factors that goes
(18:25):
into what's the right plan.
So first of all, we have todefine what your vision is kind
of get clear with that.
The next step we establish theproper retirement plan based on
your time horizon, your risktolerance, the amount of money
that you have available to putin.
Then we talk about one of themost important things that you
could do is have someone do abusiness valuation to actually
(18:49):
have a good idea of what theworth of your business is.
So there's a couple ofdifferent ways we could begin to
talk about how you create abusiness valuation.
But then also we want to talkabout diversifying your business
so that you don't Most peoplethink of their business as their
one asset that one day out inthe future they're just going to
(19:10):
be able to sell it andeverything's going to work out
and be hunky dory, but what wetalk about is OK.
How do you diversify yourincome streams?
But what we talk about is OK.
How do you diversify your incomestreams?
How do you diversify yourassets so that, when that day
does come, you have options?
You've got a variety of thingsthat you can look at.
You have assets that might betaxable, you have assets that
(19:35):
are coming, and those assetscould potentially be tax
deferred or tax free, and so nowyou have options on when and
how you leave, based on planning, and so the sooner that you
start thinking about thesethings, the better we can
develop a plan that takes intoaccount whatever eventuality
that might come.
Speaker 2 (19:51):
And I know what you're saying is the truth, like
I said again, being a businessowner, but also being with them
and seeing how we struggle withdoing this.
Now, this is my opinion, what Ithink, and you all can let me
know what you all think.
I tell my clients that you knowone.
You start making $100,000 ayear and you need to start
(20:12):
taking yourself and payingyourself.
Yeah, you have your CPA, butwith that you need to have those
long-term goals to go with it.
That's where the financialadvisor come in.
We actually have startedmentioning that to our clients
because it's amazed how many youmeet and they have a CPA but
they don't have a financialadvisor.
(20:34):
And I see the benefit of 25years of doing business, of
having one.
Like I said, I wish I had it inthe early part, but I had in
the later part.
Still, learn, it's never toolate.
Right, it's good to learn, butthe thing is, you guys are
really important for thebusiness to bring you on.
Now, this is what I'm thinkingA person that's even thinking
about starting a business andthey have it, they're a W-2
(20:56):
employee is it a great time tocome in and talk to you just to
even start planning toward that.
Can we use you for that as well?
Speaker 3 (21:03):
Sure, sure.
The biggest thing is this thereason why people have CPAs,
accountants, things of thatnature, because they have to.
And they have to pay their taxes.
They want to be good citizens.
Nobody wants to go to jail weget that but the biggest issue
is nobody's looking after you tohelp you retire.
(21:24):
And so, because there's noimmediate, the government is not
forcing you to put money awayfor retirement.
They're not forcing you tostrategize for your own benefit
and your own future.
You to strategize for your ownbenefit and your own future,
people don't do it.
And so this is one of thosesituations where you can sit
(21:44):
down and say okay, how can I paymyself what I'm worth, how can
I plan for my future so thatwhen I'm advanced in age, if I
want to work, I can choose to,but I don't have to?
And so the sooner you can startthat planning process, the
better.
The sooner you can startputting a little bit of money
away on a tax advantage platformthat is going to grow, tax
(22:05):
deferred or tax free, and thoseare the kind of things you need
to have those conversations.
The sooner you can have those,the better the results, because
you have a longer run to allowthat money to grow and put you
in a position of where you canbe in a better place financially
.
And so the sooner the better,on those situations.
Speaker 2 (22:23):
On those situations.
Ok, great, and that's what Ithink too, so I'm great for that
.
So, talking about planning,like you know, our retirement or
, let's say, secession, becauseyou mentioned, like, if you want
to sell your business or wantto leave it, sell it to your
family or friends or whatever,this is a question for you,
rachel how can you help withsuccession planning to ensure
(22:44):
that the business will survivebeyond the person?
Speaker 4 (22:49):
Sure, sure.
So succession planning isanother intentional set.
We like to teach all of ourclients as well, so it's
essential for protecting yourbusiness, your team and your
family.
So what we do is we help ownersdesign plans that ensure the
business survives, even whenthey're no longer here to run it
.
So two of the main strategiesthat we use are buy-sell
(23:13):
agreements as well as key personcoverage.
So for buy-sell agreements, thisis a life insurance policy that
can be funded by buy-sellagreements.
So it's between the partners orthe family members just making
sure when the business changeshands it runs smoothly and it
doesn't require the businessowner taking out any loans or
(23:35):
selling any assets.
Okay, so with the key personcoverage, if your business
relies on you or another pillarin your organization, a life
insurance policy can provide thecompany with immediate liquid
funds to cover these expenses.
So the time it's going to taketo hire a replacement for
(23:55):
somebody so important, or evenjust stabilizing operations in
the business, the key personcoverage is extremely critical
for business owners.
But the good thing about thesethey aren't just insurance
policies, they're actual toolsthat keep the business
operational.
We want to keep it valuable, wewant to keep it protected.
We want to keep it protected.
Like Sean was saying, if you'reever interested in selling the
(24:17):
business, having things in aplace like this could keep your
business at the value that itdeserves to be OK, great, and I
think that is something that weall need some direction on.
Speaker 2 (24:37):
Mr William, you made a comment about and it made me
think about.
I want to ask you a person youknow a lot of people now doing
businesses.
They got their business but onthe side they have started real
estate investment, all right.
So I know you kind of mentioneda little bit, but if you could
talk a little bit how you guyscan help a person that has a
business but now you're doingreal estate, then you want to
look at investments, then youwant to look at doing all this
stuff, because we all talk, thistalk, but I think we need some
(24:57):
help to do the walk, the walk.
So if you could tell me how youwork and help us with that as
well.
Speaker 3 (25:06):
So, as you said before, we want to sit down with
the client and really heartheir heart.
What's important to them, whatdo they value, their vision,
what do they want to accomplish.
And so in a situation like this, let's say, for instance, you
start a secondary business, yourprimary job, you're working
somewhere, you're doing wellwith that, but now you say, okay
(25:26):
, I want to branch out and do Xon the side.
Okay, well, one of the firstthings that makes sense to make
sure X on the side.
You want to create a separateentity for that, instead of it
being under your social, underyour name, because if something
happens there, then they can sueyou and come after your assets.
And so if you have a differententity LLC, whatever makes the
(25:49):
most sense what you want to dois have a separate organization.
So, if something happens, allof this tied off under that
company and they can't comeafter you.
Secondly, one of the thingsthat Rachel just brought up is
let's say, for instance, you'reI don't know you have a business
and you have a business loan.
Well, one of the things thatyou don't want is your family,
(26:11):
if something happens to you,whether you became disabled.
So now I'm alive, but I'mphysically not able to work and
do the things that I want to do.
So now that loan is stillhanging over your head, your
family's head, are you dieprematurely and that loan is
still hanging over yourbusiness's head.
So one of the things that we dois we would put in potentially,
(26:31):
disability insurance.
We might potentially put inlife insurance.
You die prematurely.
So now everybody is protectedand made whole Right.
You know one of the things thathappens in a business she was
just talking about key persons.
If one of the rainmakers, oneof the key people in your
business that was vital to thesuccess because they're a big
time revenue generator for yourbusiness and they died
(26:52):
prematurely, what that puts youin the bind.
How do you find the nextrainmaker?
You know what do you do untilyou find the next rainmaker.
So we can work out a situationwhere it makes perfectly good
sense to where the maybe is partof your income revenue stream.
You purchase life insurance forone of these key rainmakers.
You don't have to.
It's one of these situationswhere it's discretionary.
(27:14):
You get to choose who you dothat with.
Maybe you just do it foryourself and one of the other
key employees that make ithappen, it doesn't matter.
The point of it is you'rethinking ahead and so there can
be cash built up over it.
You can put vesting schedulesalong with it.
Other side of that, if thatperson does die, you can have it
to where there's a splitagreement Part of it might go to
(27:35):
their surviving spouse and partof it comes to the company so
that the company can stay afloatfinancially.
And so you have to stress, testand look at what are the
potential things that couldhappen and say, okay, what do we
need to do so that, if theunexpected or the undesirable
thing happens, we even have aplan so that we're going to be
okay even in those circumstances?
Speaker 2 (27:53):
Mr Williams, how long you say you've been doing this
20 years, and it shows thatyou've been doing it for 20
years.
My gosh, that was a lot, but Iknow it's things that just some
of it I can relate to.
For us, the loan business, likeyou were saying, but it's so
important to have you guys.
(28:13):
You know, when we start ourbusiness, this is what we talk
you need to get a banker, a CPA,attorney.
What's the other thing?
We spoke to someone but theynever say financial advisor.
Why don't they say that?
Because you all are bringing in.
I really think and it's just me,probably, but you all are
missing piece for us to reallybe successful.
We are breaking our brains, butfrom the time of meeting the
(28:38):
CPA once a year to meeting himagain, we are fried trying to
figure all this stuff out.
So all we have to do is get intouch with you.
So if you would tell, if youall could and maybe Rachel, you
as well let's tell our listenershow they can get in touch with
you.
So if you would tell, if youall could and you know, maybe
Rachel, you as well let's tellour listeners how they can get
in touch with you guys.
Speaker 3 (28:57):
Well, the easiest way to contact me is email or
telephone.
You know my email address isSean S-H-A-W-N dot Williams,
w-i-l-l-i-a-m-s at W-S Life,that's WhiskeySierraLifecom.
Or you can reach me it's a SanAntonio prefix but I travel and
(29:19):
have clients all over thecountry.
But you can reach me on my cellphone at 210-313-0929.
That number again is 210 1 0 31 3 0 9 2 9.
Sean Williams.
Speaker 2 (29:33):
All right, Miss Rachel, let's get your
information.
Speaker 4 (29:36):
Absolutely.
You guys can reach out to mevia LinkedIn at Rachel T Walker,
and that's Rachel with a Y, r AY C H E L Walker.
My email is Rachel with a Yagain, dot Walker at WSLifecom
and my best number is919-539-8455.
Speaker 2 (29:59):
Okay, so we got that and you also, everyone can reach
out to you.
You guys are on our referralpage, okay, so they can actually
go there and they can click andget you as well.
So, before we go, I want eachof you to give us some, the last
pointers, if you can give ustwo, or one or two that you
would like to give the listenersbefore you go, if you all can
(30:19):
give them that last wisdom, thatlast note of wisdom, if you
could, mr Sean, you go first.
Speaker 3 (30:27):
Well, most important thing, anything that is worth
working for and giving your lifeto is worth you sitting down
and saying look, I need to builda plan.
So I'm a person of faith.
There's a scripture that saysHabakkuk 2,.
It says write the vision andmake it plain.
So most people have neverwritten a financial vision for
(30:47):
their business, for their family.
They've never done anythinglike that.
The byproduct of it is a lot ofuncertainty, uneasiness.
But if you write the vision andmake it plain, the scripture
says that he that readeth it cannow run with it.
You can complete the task a lotfaster because now you know
where you're going.
(31:08):
Lot faster because now you knowwhere you're going.
And so my biggest tip would bealways start with the end in
mind.
Make a plan, because if youdon't plan to succeed, you're
planning to fail.
Speaker 2 (31:18):
Amen, Amen.
All right, Ms Rachel.
What's your point to give us?
Thank you so much, Mr Williams,for that.
Speaker 3 (31:24):
Thank you.
Speaker 4 (31:24):
I don't know how I'll top that, but I would just say
no, that's right Right know howI'll top that, but I would say,
I would say, don't be afraid toreach out to us.
We're truly here to be yourconsultant, your personal
therapist.
We're kind of all in one andyou know, it doesn't matter if
you don't feel like you're ready, you're not at the place you
want to be.
Financially, we're here to help, to help you get there even
(31:47):
faster than you could haveimagined.
So we hope to see you guys soon.
Speaker 2 (31:51):
OK, well, that sounds like that's something we
definitely want everybody toknow.
I want to thank everybody forlistening.
We will have this up on ourYouTube channel and everyone
would actually get a notice forthat.
We want to thank our guests fortaking time out your busy day
and I really do appreciate youfitting us in, Mr Sean Williams
and Rachel Walker.
You guys did an excellent joband we thank you all so much,
(32:15):
and I want to tell our audiencethank you for tuning in.
Until next time you all takecare and we'll talk to you then.
Y'all have a great one, See youall later.
Speaker 3 (32:24):
Thanks, jackie, see you later.
Speaker 1 (32:26):
Bye-bye.
We hope you enjoyed thisepisode of TDJ Equity Funding
Insiders Podcast.
If you'd like to be a guest orget in touch with us, please
visit our website attdjequityllcnet.
Forward slash podcast or emailus at podcast at
tdjequityfundinginsidersnet.
(32:48):
Until next time, take care.
Ready to get the inside scoop on equity funding?
Tune in to TDJ Equity FundingInsiders Podcast for an in-depth
look at what it takes to accessfinancial capital and maximize
your investments.
Hear from experiencedprofessionals, including bankers
, underwriters, loan officersand industry experts, as they
(00:36):
share their unfiltered storiesand valuable lessons on securing
funds.
Speaker 2 (00:51):
We want to first of all thank everybody for coming
out to our Giving Power to theBusiness Owner webinar series
and this is ours that we'rehaving today.
Now let's talk a little bitabout it.
Some of you guys have beenfollowing us for a while.
We really deal with businessowners is our main thing, but we
also found out a lot of ustransitioned from being a W-2
into being a business owner andwe have a tendency to don't look
(01:13):
at the things that probably wastaken care of when we were
actually as a W-2 employee.
That is why this is important.
Some of those things could behow do you actually set up where
you can have your money saved,or what you're working for
towards your retirement, towardsyour goals, or what you want to
do for college.
All of this stuff can be playedout as a business owner, but
(01:36):
most of us do not know how to dothat.
Two guests today that are comingin to actually talk to us as
business owners, asentrepreneurs some things you
need to have in place as you doyour business, on cash flowing
and things of that nature.
They're here and if you allhave any comments, like we told
(01:56):
you before, always send thecomments in to us and we'll
actually get it to them as well.
So, to start the show off,we're going to.
First of all, I would like forSean Williams to introduce
himself and then, after that,rachel, if you would, when he
finished, introduce yourself,and then we'll go into our
questions and answers.
Okay, all right, sean, if youwould again thank you for being
(02:18):
here and, if you would, let'stell our audience a little bit
about yourself.
Speaker 3 (02:23):
Well, jackie, thank you for having me today.
I'm excited to be on the showand I hope I add tremendous
value for your business owners.
I've been in the industry for20 years and one of the neat
things about what I do is helpbusiness owners be the best
versions of themselves.
Oftentimes, business ownersdon't realize the power that
they have or the impact they canhave on not only their own
(02:43):
individual family but thecommunity at large, and so, in
large part, I'm an aide andassistant.
I help people become the bestversions of themselves and do
realize their potential so thatthey can do all the wonderful
things they want to do.
So we can take a small businessowner that only has themselves,
or maybe two or three employeesor 1099 people, and give them
(03:06):
the same benefits, the sameopportunities as if they were a
Fortune 500 company, so beingable to show business owners how
they can take advantage of taxcode and also take advantage of
various financial products sothat they can plan their future
just like they were running ahuge corporation.
Speaker 2 (03:24):
All right, that is wonderful and that's what we
want to talk about a lot today.
So we'll get more into thosequestions.
Thank you so much, ms Rachel.
If you would, let's get anintroduction of you as well.
Speaker 4 (03:35):
Sure, absolutely.
Sean did a great job atsummarizing what we do, but my
background is mostly in realestate investing, wholesaling,
flipping, all that fun stuff somy goal is to really connect
with business owners as well asreal estate investors and being
a guiding light for them and howto maximize the use of their
money and all their otherresources, so I'm hoping we can
(03:59):
definitely dish out some reallygood, helpful tips today.
Speaker 2 (04:02):
Okay, great Again.
Thank you for being here aswell, and both of you.
We are really excited to haveyou guys helpful tips today.
Okay, great Again, thank youfor being here as well, and both
of you are.
We are really excited to haveyou guys with us today.
Something we've noticed as loanbrokers and I know we've had
some discussions of this is thatwe don't see what a business
owner understand cashflow.
They have a little struggle ofwhat that works and I wanted you
(04:23):
to give like some strategiesyou could recommend for managing
cashflow and ensuring theliquidity of their business.
Can you give us some pointerson that?
Speaker 3 (04:35):
Definitely, having cashflow is the heartbeat of the
business.
You know, everybody wants notonly to survive but to actually
thrive, and being able to handlethe cash flow, or whenever you
set up the cash flow system,that's the most important thing.
And so, first of all, what youwant to do is set up a set of
circumstances where you forecastwhat you're going to have six
(04:57):
to 12 months out.
So if you know what you havecoming in, you want to be able
to determine okay, consistently,I have this fixed amount coming
in.
You want to be able todetermine, okay, consistently, I
have this fixed amount comingin.
I have these.
And so whenever you cananticipate what you're doing,
you want to anticipate it, soyou can look forward six to 12
months out.
Second thing that you want to dois you want to segment your
(05:18):
expenses.
And what I mean by segmentingyour expenses?
You want to understand what's afixed expense and what's a
variable.
A fixed expense is the samemonth after month, after month
after month, but when you have avariable expense, it could be
the power bill, and so duringthe winter is, if you're in a
(05:40):
cold environment, it's much moreexpensive than in the summer
because of the AC.
So when you have a variable,you want to distinguish what's a
fixed amount, what's a variableamount.
And then, lastly, along thatsame line, you want to look at
what's discretionary as far asthe things that you're spending
money on.
So if things get tight, you candecide what can I cut off or
what can I cut back on first,and you will start with those
(06:03):
discretionary things.
What can I cut back on first,and you will start with those
discretionary things.
The next step is that you wantto create what I call a
liquidity buffer or an emergencyfund.
And a liquidity buffer oremergency fund, in an ideal set
of circumstances, you have threeto six months worth of expenses
set aside so that if things gotlame, you get into trouble, ran
into difficulty financially.
(06:25):
You've got a buffer, some roomto breathe before you have to
hit the panic button.
Another aspect of it is youwant to control your spending by
looking at how do I speed up myreceivables and slow down my
payables, and you want tonegotiate what those favorable
terms for whenever you'renegotiating inflows and outflows
(06:48):
.
So you want to stay ahead ofthat.
And then, third, the next thingthat you want to do is just
stay on top of it and revisitand review so that you can just
regularly to make sure that thatcash flow is seamless Whenever
you have issues.
A lot of times you didn't plan,and if you don't plan, you plan
to fail, and so what you wantto do is have a structured plan
(07:10):
in place so that you have abetter ideal, so that when
difficulty comes, you're in agood place and able to adjust as
you need to okay.
Speaker 2 (07:19):
So with that said, you can actually a business can
actually come to you and you canhelp get us set up with all
these that you're naming.
Am I correct, correct?
Okay, so that's what.
Let's talk a little bit on it,because I think it's.
I mean, you said some reallygreat things as business owners,
we don't even look at.
I think we don't realize, uh,mr shun, that we can't.
(07:41):
We, we can have the same setupa corporation has, but because
we're a small business, we wantto make it half.
A corporation has, but becausewe're a small business, we want
to make it half a million.
I don't think we think alongthose lines.
So that's why I thought it wasso important.
And let me ask you this so yourtitle, because people want to
look for it, it won't come toyou, but will you fall as a
financial advisor or where wouldyou fall at with that?
Speaker 3 (08:03):
Correct, my title is financial advisor.
Speaker 2 (08:06):
Okay, compared to a lot of times, we just think we
have to go to a CPA.
Now I know that's a littledifferent, but if you could
explain what's the difference ofgoing to a CPA compared to
going to someone like afinancial advisor like you,
because all we know is mainlyCPAs.
Speaker 3 (08:22):
Okay.
So typically I usually partnerwith CPAs.
So from my part, I'll help youwith the cashflow, understanding
the budgeting.
Okay, have you look at?
Okay, this is my income, soeverybody has income and they
got outgoes.
And so when you look at incomeand outgoes now what we're
trying to figure out is how dowe begin to pinch off enough so
(08:43):
that I'm saving enough eachmonth to where I can get this
emergency fund set up?
Do I have three to six, threeto six months worth of room to
breathe that kind of situation?
And then the other part is wewe also typically partner with
CPAs and look at the most taxadvantage ways that you can.
It's not how much money youmake oftentimes, but it's how
much you get to keep.
(09:04):
So we help you play the taxgame and so I partner with the
CPA to bring about thoseoutcomes.
Speaker 2 (09:14):
So what I'm sure want everybody to kind of notice.
I know pretty much from myexperience of being in business
how you guys work together andthat's what they have to know.
You can't just have if yourbusiness is growing.
Now, mr William, you tell me ifI'm wrong, but if your business
is growing and your revenue isgrowing at some point, you can't
just have a CPA, you have tohave a financial advisor to come
(09:34):
in and work toward that.
Now, am I right or wrong?
Is that how you got to work alittle bit?
Speaker 3 (09:40):
That's correct.
So say, for instance, a CPAknows the tax laws but they
don't typically sell or use theproducts to implement the
strategies.
So they might tell you hey,you're making a good money, we
probably need to do A, b and Cso we can lower your taxable
income, but they don't help youput those structures in place.
(10:00):
So we would actuallypotentially put the retirement
plan in place so that that moneythat you're now making can go
to that tax plan and now yourtaxable income is going down.
So we put the actual stuff inplace, whether it's a simple a
SEP, single 401k.
So we actually put the actualproducts in place so that you
(10:21):
can execute some of thestrategies that the CPA might
help you with.
So one of the things that youcan do as a business owner let's
say French, you were talkingabout a business owner that's
generating half a milliondollars worth of revenue One of
the things we need to do is lookat how do we make sure that if
he would have hit a lean stretch, or she would hit a lean
stretch, how can we createliquidity moving forward based
(10:43):
on the money that they'recurrently making?
So we would introduce differentstrategies that they can
implement so that if things wereto slow down, that they still
don't have to panic, because nowthey've got the emergency fund,
now they've got money inretirement, now they might have
some other vehicles that areadding additional protection to
their income, and so there's alot of different things that we
(11:05):
would sit down with them anddiscuss.
Speaker 2 (11:07):
And that's what we don't realize as business owners
.
That's why it's so importantfor us to have these type of
seminars or series, because youguys come out and let them know.
Listen, it's not trying to sellyou anything, but if you're
going to grow and continue togrow, it's certain things you
need to be in place.
Now let me ask you this to growis certain things you need to
be in place.
Now let me ask you this howmuch revenue you think a person
(11:29):
needs a business should have to?
We know CPAs you start off withyour CPA but how much revenue
you think a person should haveto actually start getting a
financial advisor?
What should my revenue looklike?
What do you think?
Speaker 3 (11:41):
So it depends on the advisor and who he wants to work
with.
So I have a heart to work witha lot of disadvantaged people
who are just getting started,because I think it's just as
valuable a person who's making$100,000 a year as somebody
who's making a million dollars ayear, and so I try to give
people a platform they can getin where they fit in.
(12:02):
People a platform they can getin where they fit in.
So the ideal set ofcircumstances is sit with them,
hear what their heart is, vision, purpose, goals.
When I'm looking at that cashflow now, I can say, okay, based
on having a healthyrelationship, you need to have
maybe 10 to 15% of your incomeor your revenue going to your
retirement so that when you getto whatever age now because we
(12:26):
started with the end in mind nowwe can kind of anticipate what
we need to do moving forward.
So the sooner we can gettogether and start the planning
process, the better.
Speaker 2 (12:36):
Exactly, and this is for our owners to know.
This is the ugly part.
I wish I would have startedwith one of you all when I
started my business, at least ayear in, because I see now,
hindsight, now that I do have it, that it would have saved so
much headaches because you guysknow how things are going to
look down the line based on ourcompany, because that's what you
(13:00):
do.
So I really want and we'rereally pushing it for people to
at least reach out and see whatyou can do for them.
Do not just sit there waitingor dealing with the problems on
your own.
You don't have to do that.
So what I do like.
Also, we're leading into whereyou talked about the taxes.
That's another thing.
People don't realize how youcan help them with the tax
(13:21):
planning.
So, ms Rachel, I have aquestion for you no-transcript.
Speaker 4 (13:33):
Sure.
So I know everyone loves to paytaxes, right, but we don't give
tax advice, but we dospecialize in strategies that
work alongside CPAs or taxprofessionals, making sure we
help reduce taxable income andincreasing financial efficiency
legally but strategically mostimportant important.
(14:00):
So one of our favoriteapproaches we use a tool called
an index universal life, alsoknown as an IUL policy.
So these are structured to growcash deferred.
They offer tax-free access ofincome through policy loans and
you can pass this on tax-free toa benefit of your heirs.
So for business owners, thesetypes of strategies can serve
(14:21):
dual purposes they providefuture sources of tax-free
supplemental income while alsomaking sure that we're creating
liquidity for retirement,succession planning and other
long-term goals, such asinvestments, buying more real
estate, whatever you're lookingto do long-term goals such as
investments, buying more realestate, whatever you're looking
(14:41):
to do.
While we're not trying tonecessarily beat the tax code,
we are using it as it wasdesigned for business owners who
are moving intentionally andplanning ahead.
Speaker 2 (14:48):
So basically, again, what you are saying that I'm
hearing is that you work alongwith that tax preparation area,
so we don't have to try toreally just rely on one person,
but we have someone that's partof the team, that know what
we're looking like.
They can kind of help usstrategize a lot better than
just having our tax prepared.
And that's it right.
(15:09):
That's what.
Basically what you're sayingExactly.
Speaker 4 (15:11):
Okay, we have a lot of conversations with CPAs you
know, we create a team for thatbusiness owner.
Speaker 2 (15:19):
All right, and you can provide that, and so that's
why I say it's just so simplehow much you guys save if
business owners I deal with alot when people come to us as
loan brokers, and you all knowthis they're already distressed
and they're looking for money.
The thing is there's somethings they could have had in
place where you won't be such ina rush or panic for money if
they would have worked with afinancial advisor starting out.
(15:41):
But one of the girls here inthe office we're talking about
you guys had made the commentWell, you know, financial
advisors has the stigma of Ihave to have a lot of money to
talk to them.
That's something, and I say youknow what.
You're right.
So that's something you alllike.
I think you kind of touched on alittle bit, Mr Williams.
But if you would, Rachel, touchon a little bit of how it's
(16:05):
easier to work with you all atany stage, like he said, that's
working with you guys, Can youkind of explain a little bit how
easy it is to work with you all?
Speaker 4 (16:13):
Sure, I mean you have to start somewhere.
We're here to talk to you andget a better understanding of
what you need and see how we canbe valuable in that area.
So I think if you have theintention of being a business
(16:35):
owner in going to be is going tocome to fruition because you've
put the right people in placeto make sure we can work in your
business while you work on yourbusiness and I love that.
Speaker 2 (16:44):
That's what we need.
So, Mr Williams, let me knowhow do you assist in setting up
a retirement or an extrastrategy for a business owner?
How do you do that?
Speaker 3 (16:56):
Anything.
When you're talking aboutlong-term planning and looking
down the road, you have to startwith the end in mind.
So the first thing I do, Iwould sit with the business
owner and say okay, what wouldretirement look like?
What would your exit strategylook like?
What would you like it to looklike?
Sometimes that means you may beable to turn the business over
to a family member.
They're going to buy thebusiness from you.
(17:18):
Maybe you're in a set ofcircumstances where you have a
competitor.
You've been in the industry along time but whatever you do,
there are competitors who wouldlike to purchase your business.
So that might be an option.
There are some sort ofcircumstances where people say
you know what I want to do apartial purchase.
I might only want to work oneday a week, two days a week.
(17:40):
I don't want to grind as hardas I have been, but I don't want
to sit at home and do nothing.
So it really depends on theemotional and psychological
setup of what you would like todo.
So we just talk about yourgoals, what's important to you.
From there, it determines whichtype of retirement plan we
might look at, because now wemight look at a time horizon,
(18:02):
based on a five or 10 or 15 or20 year plan.
And so now we have to decidebased on your risk tolerance,
your time horizon OK, this ishow much money you have to put
into a plan.
So we would choose a planthat's based on your goals of
when you want to leave, and sothat impacts what type of plan
that we choose, and so it's avariety of factors that goes
(18:25):
into what's the right plan.
So first of all, we have todefine what your vision is kind
of get clear with that.
The next step we establish theproper retirement plan based on
your time horizon, your risktolerance, the amount of money
that you have available to putin.
Then we talk about one of themost important things that you
could do is have someone do abusiness valuation to actually
(18:49):
have a good idea of what theworth of your business is.
So there's a couple ofdifferent ways we could begin to
talk about how you create abusiness valuation.
But then also we want to talkabout diversifying your business
so that you don't Most peoplethink of their business as their
one asset that one day out inthe future they're just going to
(19:10):
be able to sell it andeverything's going to work out
and be hunky dory, but what wetalk about is OK.
How do you diversify yourincome streams?
But what we talk about is OK.
How do you diversify your incomestreams?
How do you diversify yourassets so that, when that day
does come, you have options?
You've got a variety of thingsthat you can look at.
You have assets that might betaxable, you have assets that
(19:35):
are coming, and those assetscould potentially be tax
deferred or tax free, and so nowyou have options on when and
how you leave, based on planning, and so the sooner that you
start thinking about thesethings, the better we can
develop a plan that takes intoaccount whatever eventuality
that might come.
Speaker 2 (19:51):
And I know what you're saying is the truth, like
I said again, being a businessowner, but also being with them
and seeing how we struggle withdoing this.
Now, this is my opinion, what Ithink, and you all can let me
know what you all think.
I tell my clients that you knowone.
You start making $100,000 ayear and you need to start
(20:12):
taking yourself and payingyourself.
Yeah, you have your CPA, butwith that you need to have those
long-term goals to go with it.
That's where the financialadvisor come in.
We actually have startedmentioning that to our clients
because it's amazed how many youmeet and they have a CPA but
they don't have a financialadvisor.
(20:34):
And I see the benefit of 25years of doing business, of
having one.
Like I said, I wish I had it inthe early part, but I had in
the later part.
Still, learn, it's never toolate.
Right, it's good to learn, butthe thing is, you guys are
really important for thebusiness to bring you on.
Now, this is what I'm thinkingA person that's even thinking
about starting a business andthey have it, they're a W-2
(20:56):
employee is it a great time tocome in and talk to you just to
even start planning toward that.
Can we use you for that as well?
Speaker 3 (21:03):
Sure, sure.
The biggest thing is this thereason why people have CPAs,
accountants, things of thatnature, because they have to.
And they have to pay their taxes.
They want to be good citizens.
Nobody wants to go to jail weget that but the biggest issue
is nobody's looking after you tohelp you retire.
(21:24):
And so, because there's noimmediate, the government is not
forcing you to put money awayfor retirement.
They're not forcing you tostrategize for your own benefit
and your own future.
You to strategize for your ownbenefit and your own future,
people don't do it.
And so this is one of thosesituations where you can sit
(21:44):
down and say okay, how can I paymyself what I'm worth, how can
I plan for my future so thatwhen I'm advanced in age, if I
want to work, I can choose to,but I don't have to?
And so the sooner you can startthat planning process, the
better.
The sooner you can startputting a little bit of money
away on a tax advantage platformthat is going to grow, tax
(22:05):
deferred or tax free, and thoseare the kind of things you need
to have those conversations.
The sooner you can have those,the better the results, because
you have a longer run to allowthat money to grow and put you
in a position of where you canbe in a better place financially
.
And so the sooner the better,on those situations.
Speaker 2 (22:23):
On those situations.
Ok, great, and that's what Ithink too, so I'm great for that
.
So, talking about planning,like you know, our retirement or
, let's say, secession, becauseyou mentioned, like, if you want
to sell your business or wantto leave it, sell it to your
family or friends or whatever,this is a question for you,
rachel how can you help withsuccession planning to ensure
(22:44):
that the business will survivebeyond the person?
Speaker 4 (22:49):
Sure, sure.
So succession planning isanother intentional set.
We like to teach all of ourclients as well, so it's
essential for protecting yourbusiness, your team and your
family.
So what we do is we help ownersdesign plans that ensure the
business survives, even whenthey're no longer here to run it
.
So two of the main strategiesthat we use are buy-sell
(23:13):
agreements as well as key personcoverage.
So for buy-sell agreements, thisis a life insurance policy that
can be funded by buy-sellagreements.
So it's between the partners orthe family members just making
sure when the business changeshands it runs smoothly and it
doesn't require the businessowner taking out any loans or
(23:35):
selling any assets.
Okay, so with the key personcoverage, if your business
relies on you or another pillarin your organization, a life
insurance policy can provide thecompany with immediate liquid
funds to cover these expenses.
So the time it's going to taketo hire a replacement for
(23:55):
somebody so important, or evenjust stabilizing operations in
the business, the key personcoverage is extremely critical
for business owners.
But the good thing about thesethey aren't just insurance
policies, they're actual toolsthat keep the business
operational.
We want to keep it valuable, wewant to keep it protected.
We want to keep it protected.
Like Sean was saying, if you'reever interested in selling the
(24:17):
business, having things in aplace like this could keep your
business at the value that itdeserves to be OK, great, and I
think that is something that weall need some direction on.
Speaker 2 (24:37):
Mr William, you made a comment about and it made me
think about.
I want to ask you a person youknow a lot of people now doing
businesses.
They got their business but onthe side they have started real
estate investment, all right.
So I know you kind of mentioneda little bit, but if you could
talk a little bit how you guyscan help a person that has a
business but now you're doingreal estate, then you want to
look at investments, then youwant to look at doing all this
stuff, because we all talk, thistalk, but I think we need some
(24:57):
help to do the walk, the walk.
So if you could tell me how youwork and help us with that as
well.
Speaker 3 (25:06):
So, as you said before, we want to sit down with
the client and really heartheir heart.
What's important to them, whatdo they value, their vision,
what do they want to accomplish.
And so in a situation like this, let's say, for instance, you
start a secondary business, yourprimary job, you're working
somewhere, you're doing wellwith that, but now you say, okay
(25:26):
, I want to branch out and do Xon the side.
Okay, well, one of the firstthings that makes sense to make
sure X on the side.
You want to create a separateentity for that, instead of it
being under your social, underyour name, because if something
happens there, then they can sueyou and come after your assets.
And so if you have a differententity LLC, whatever makes the
(25:49):
most sense what you want to dois have a separate organization.
So, if something happens, allof this tied off under that
company and they can't comeafter you.
Secondly, one of the thingsthat Rachel just brought up is
let's say, for instance, you'reI don't know you have a business
and you have a business loan.
Well, one of the things thatyou don't want is your family,
(26:11):
if something happens to you,whether you became disabled.
So now I'm alive, but I'mphysically not able to work and
do the things that I want to do.
So now that loan is stillhanging over your head, your
family's head, are you dieprematurely and that loan is
still hanging over yourbusiness's head.
So one of the things that we dois we would put in potentially,
(26:31):
disability insurance.
We might potentially put inlife insurance.
You die prematurely.
So now everybody is protectedand made whole Right.
You know one of the things thathappens in a business she was
just talking about key persons.
If one of the rainmakers, oneof the key people in your
business that was vital to thesuccess because they're a big
time revenue generator for yourbusiness and they died
(26:52):
prematurely, what that puts youin the bind.
How do you find the nextrainmaker?
You know what do you do untilyou find the next rainmaker.
So we can work out a situationwhere it makes perfectly good
sense to where the maybe is partof your income revenue stream.
You purchase life insurance forone of these key rainmakers.
You don't have to.
It's one of these situationswhere it's discretionary.
(27:14):
You get to choose who you dothat with.
Maybe you just do it foryourself and one of the other
key employees that make ithappen, it doesn't matter.
The point of it is you'rethinking ahead and so there can
be cash built up over it.
You can put vesting schedulesalong with it.
Other side of that, if thatperson does die, you can have it
to where there's a splitagreement Part of it might go to
(27:35):
their surviving spouse and partof it comes to the company so
that the company can stay afloatfinancially.
And so you have to stress, testand look at what are the
potential things that couldhappen and say, okay, what do we
need to do so that, if theunexpected or the undesirable
thing happens, we even have aplan so that we're going to be
okay even in those circumstances?
Speaker 2 (27:53):
Mr Williams, how long you say you've been doing this
20 years, and it shows thatyou've been doing it for 20
years.
My gosh, that was a lot, but Iknow it's things that just some
of it I can relate to.
For us, the loan business, likeyou were saying, but it's so
important to have you guys.
(28:13):
You know, when we start ourbusiness, this is what we talk
you need to get a banker, a CPA,attorney.
What's the other thing?
We spoke to someone but theynever say financial advisor.
Why don't they say that?
Because you all are bringing in.
I really think and it's just me,probably, but you all are
missing piece for us to reallybe successful.
We are breaking our brains, butfrom the time of meeting the
(28:38):
CPA once a year to meeting himagain, we are fried trying to
figure all this stuff out.
So all we have to do is get intouch with you.
So if you would tell, if youall could and maybe Rachel, you
as well let's tell our listenershow they can get in touch with
you.
So if you would tell, if youall could and you know, maybe
Rachel, you as well let's tellour listeners how they can get
in touch with you guys.
Speaker 3 (28:57):
Well, the easiest way to contact me is email or
telephone.
You know my email address isSean S-H-A-W-N dot Williams,
w-i-l-l-i-a-m-s at W-S Life,that's WhiskeySierraLifecom.
Or you can reach me it's a SanAntonio prefix but I travel and
(29:19):
have clients all over thecountry.
But you can reach me on my cellphone at 210-313-0929.
That number again is 210 1 0 31 3 0 9 2 9.
Sean Williams.
Speaker 2 (29:33):
All right, Miss Rachel, let's get your
information.
Speaker 4 (29:36):
Absolutely.
You guys can reach out to mevia LinkedIn at Rachel T Walker,
and that's Rachel with a Y, r AY C H E L Walker.
My email is Rachel with a Yagain, dot Walker at WSLifecom
and my best number is919-539-8455.
Speaker 2 (29:59):
Okay, so we got that and you also, everyone can reach
out to you.
You guys are on our referralpage, okay, so they can actually
go there and they can click andget you as well.
So, before we go, I want eachof you to give us some, the last
pointers, if you can give ustwo, or one or two that you
would like to give the listenersbefore you go, if you all can
(30:19):
give them that last wisdom, thatlast note of wisdom, if you
could, mr Sean, you go first.
Speaker 3 (30:27):
Well, most important thing, anything that is worth
working for and giving your lifeto is worth you sitting down
and saying look, I need to builda plan.
So I'm a person of faith.
There's a scripture that saysHabakkuk 2,.
It says write the vision andmake it plain.
So most people have neverwritten a financial vision for
(30:47):
their business, for their family.
They've never done anythinglike that.
The byproduct of it is a lot ofuncertainty, uneasiness.
But if you write the vision andmake it plain, the scripture
says that he that readeth it cannow run with it.
You can complete the task a lotfaster because now you know
where you're going.
(31:08):
Lot faster because now you knowwhere you're going.
And so my biggest tip would bealways start with the end in
mind.
Make a plan, because if youdon't plan to succeed, you're
planning to fail.
Speaker 2 (31:18):
Amen, Amen.
All right, Ms Rachel.
What's your point to give us?
Thank you so much, Mr Williams,for that.
Speaker 3 (31:24):
Thank you.
Speaker 4 (31:24):
I don't know how I'll top that, but I would just say
no, that's right Right know howI'll top that, but I would say,
I would say, don't be afraid toreach out to us.
We're truly here to be yourconsultant, your personal
therapist.
We're kind of all in one andyou know, it doesn't matter if
you don't feel like you're ready, you're not at the place you
want to be.
Financially, we're here to help, to help you get there even
(31:47):
faster than you could haveimagined.
So we hope to see you guys soon.
Speaker 2 (31:51):
OK, well, that sounds like that's something we
definitely want everybody toknow.
I want to thank everybody forlistening.
We will have this up on ourYouTube channel and everyone
would actually get a notice forthat.
We want to thank our guests fortaking time out your busy day
and I really do appreciate youfitting us in, Mr Sean Williams
and Rachel Walker.
You guys did an excellent joband we thank you all so much,
(32:15):
and I want to tell our audiencethank you for tuning in.
Until next time you all takecare and we'll talk to you then.
Y'all have a great one, See youall later.
Speaker 3 (32:24):
Thanks, jackie, see you later.
Speaker 1 (32:26):
Bye-bye.
We hope you enjoyed thisepisode of TDJ Equity Funding
Insiders Podcast.
If you'd like to be a guest orget in touch with us, please
visit our website attdjequityllcnet.
Forward slash podcast or emailus at podcast at
tdjequityfundinginsidersnet.
(32:48):
Until next time, take care.
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