From rising interest rates and inflation to ongoing headlines about tariffs, staffing challenges, and potential tax changes, it seems like something new is impacting business owners every day. It's no surprise many are on high alert and asking what comes next.
In an environment like this, reacting isn’t enough. Planning ahead is the only way to stay in control.
That's why we asked two of our advisors, Tim Dunnebackand TJ Gilboy, who work closely with business owners, to share their thoughts about questions they’re hearing right now. If you own a business and you’re worried about the current state of the economy, this is for you.
1. Are You Waiting Too Long to Plan Your Exit—or Just Waiting for “The Right Time”?
Why it matters: Delaying your exit plan can leave you vulnerable to financial risks, lost opportunities, and unwanted surprises.
Timsays: “Delaying the planning on your exit from your business can cause risks for yourself by not diversifying, leaving your entire nest egg tied up in your business. This can force you to sell at an inopportune time—potentially for far less than it’s worth—and create major tax consequences. It can also cause risks for your family if there’s no clear, communicated estate plan. And for your employees, the absence of a continuity plan can ultimately cause the business to close.”
TJadds: “The earlier you start planning, the more you can maximize the value of your business, improve operations, and create flexibility for your exit strategy. Delaying exposes you to risks like health issues or market shifts forcing a rushed transition, often leading to less favorable outcomes.”
2. When Was the Last Time You Had Your Business Valued? Are You Basing Decisions on Outdated Numbers?
Why it matters:Outdated assumptions about your business’s worth can lead to costly mistakes in retirement planning, sale negotiations, or daily decision-making.
Tim says: “Not updating your business plan regularly can cause major issues, especially if an unexpected event, like the passing of a business partner, occurs. Many business owners overestimate their business's worth when it comes time to sell, only to be disappointed by lower offers. Regular valuations help set proper expectations and allow you to plan strategically for both a sale and retirement.”
TJadds: “Valuations are critical for understanding your true financial standing. Regular updates ensure you aren't making decisions based on outdated figures like undervaluing your business during a sale or overestimating its strength for retirement planning.”
3. Have You Reviewed How Current Tax Proposals or Policy Changes Could Affect Your Plans?
Why it matters: Tax law changes can significantly impact the timing and structure of your business transition and your overall financial picture.
Timsays: “If you’re considering selling your business down the road, working with professionals early can help you fully understand potential tax consequences. Starting that process 3–5 years ahead gives you time to plan strategically, potentially minimizing taxes and keeping more of the sale proceeds. Waiting too long often results in paying far more in taxes than necessary.”
TJadds: “A proactive tax strategy is crucial. Changes to capital gains rates, business structure rules, or corporate tax rates could all affect your bottom line. Incorporating these possibilities into your long-term plans can help you reduce tax burdens and safeguard your financial goals.”
4. If your business relies on products or materials, are tariffs or supply chain costs putting pressure on your margins?
Why it matters:For product-based businesses, rising tariffs and supply chain disruptions can silently erode profitability if left unaddressed.
Tim says: “You should always be communicating with your team to develop strategies for any potential economic challenges on the horizon.”
TJ adds: “If tariffs or supply chain costs are impacting your margins, explore strategies like diversifying suppliers, renegotiating contracts, or streamlining inventory with technology. Adapting to market shifts early can protect your business’s bottom line.”
As overwhelming it can feel and sometimes, the hardest part is just knowing where to begin, especially at a time like this. If you’ve been worried about your business's future, sitting with more questions than answers lately, we’d love for you to join us at our upcoming business seminar. For more information, click here.