Business Life Cycle Planning Attorneys in Woodcliff Lake NJ
Owners of closely-held businesses follow a business life cycle just like a parent raising a child. They create the business (conception), they nurse it to maturity (teenage years), once established, they continue to run it (adulthood), and, eventually, the owners age, and want to pass the business on (retirement or death).
We assist these owners with our Business Life Cycle Planning® for business owners.
Through our combination of business and estate planning skills, we view the business owner holistically, integrating the four major choice points in the life cycle of a closely-held business: business formation; general legal and management operations: internal shareholder/owner relations; business succession planning (when owners wish to pass the business on); and owners’ estate planning, to ensure that the business succession plan dovetails with the owners’ estate plan. In some cases, the owners may decide to sell the business rather than pass it on. We help with that as well.
Understanding the life cycle of a business and preparing for those stages is crucial for success. Any individuals and corporate entities planning to undertake a new business venture need the expertise and guidance of a legal expert to help them prepare adequately for those processes and take action when necessary. If you are planning to seek legal assistance with business lifecycle planning, reach out to experts in the field to let them assist you in the endeavor from beginning to end.
Business Planning Details
Planning for the phases of business is crucial for success. Having a well-planned strategy and preparing for each accordingly can be a challenge. However, navigating the process is much more straightforward when you reach out to a legal professional with the knowledge to provide details and solutions. A business life cycle can be outlined in five steps. These steps can include the following.
These stages occur at different intervals depending on the type of business and market climate.
The launch phase of a business is when you begin offering products and services to your customers. Expect a cash flow dip during this phase while initiating a sales structure and higher startup costs. This stage is where a business must plan effectively to move on to the next stage successfully.
The growth phase is what all businesses look forward to in terms of intent. Sales increase significantly, and profit margins increase. Cash intake should be managed accordingly to get the best outcome and prepare for the following stage.
Sales are steady or increasing during the shake-out phase. This is when you can expect to see your maximum growth potential, and profits may begin to wane slightly.
During the maturity phase, the sales begin to decrease along with cash flow. Although spending on large ticket products and services is low, the income generated is stagnant but profitable.
The final phase of the business cycle is where profits decline and risk increases. This cycle timeline and impact depend on the ability of the business to adapt to the changing consumer markets and interest in the company. During the decline stage, you’ll want legal guidance to help you prepare for any steps necessary to take action.
Get The Assistance You Need
Knowing the stages of a business cycle is one of many challenges. Understanding what each entails and how to approach each process is the key. Legal professionals are well-versed in this process and can educate you on what to expect and do with each phase to get the best results.
Falcon Law Group is proud to offer legal services for business planning to the residents in and around the New Jersey area. Our team is ready to help propel your business through all states from start to finish and provide expert information and services to ensure you get the most from your endeavors. Call today to find out more or to schedule a consultation with one of our legal team.
Get in touch to learn more about how our business services can help you and your closely-held company.