Are you beginning to see some of the problems of settling an estate and the transfer of business and other assets? I will tell you a true story about a couple of my married clients who owned a small family business. He and his adorable wife are two of the most brilliant people I have met in my almost 40 years of working in the financial services industry. They started a small computer service business in their home and soon decided to move into a retail store on Main Street. It wasn't long before they were doing so much business, they were forced to hire other technicians to help with the workload. They also generated a large amount of income from installing computer systems for professional offices. After a couple of years of working an average of 16 to 18 hours daily, seven days a week, and yet, barely having enough money to meet monthly expenses, we had a conversation, and I looked at their business model and could see immediately some very glaring problems. First, they had a huge amount in accounts receivable, and they had to get on the phone and collect this money and they did. Second, they were experiencing employee theft, and they dealt with the person and fired him. Third, their overhead with employee salaries, employee taxes, rent, utilities, and marketing was way over the limit. They weren't making any money; this often happens in a small business. I recommend a remarkably simple plan of action. Shut the retail store completely down. Get rid of all the employees, sell all excess inventory on eBay, buy a service van, remodel their home basement, and only work with cash- paying customers and then monitor the number of hours worked each week so they can have a life outside of work.
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