3900 N. 10th St. STE 970 McAllen, TX 78501(956) 618-4474 ext 29

JM GetMoore Insurance &

Financial Services

Community Involvement

•

Kid Care Program

This presentation contains statistics put together by our firm through hours of research. The intention of this research is to inform and inspire businesses in our community in efforts to help them SUCCEED.

U.S. Census Bureau

In the United States alone

500,000 businesses fail

each year.

Gardner Business Solutions 2001-2006

A Business Fails at a Rate of Every Three Seconds

10% of all Employment Businesses Open and Close Each Year

New Employer Businesses Have a 50/50 Chance of Surviving Five Years or More

2 YEARS 5 YEARS 10 YEARS0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0.885%

0.96

Percentage of Business Failures Over Time

Dun & Bradstreet & U.S. Department of Labor

25% of the Businesses that Fail Each Year Are MORE than

10 YEARS OLD

IT’S A FACT!!Attard Communications, Inc. (Copyright 2006)

FIVE COMMON REASONS WHY BUSINESSES FAIL And knowing what those reasons are can have a dramatic impact

on the success and overall profitability of your company.DRJ’s Small Business Center, 2006

7 out of 10 New Businesses Fail Every Year Due to Lack of Planning.

OUR FIRM SPECIALIZES IN:

Working with business owners helping them avoid becoming one of the 44% of businesses

who fail due to lack of planning.

7% Failed From Not Having a Written Business Plan

Of the 44% of Business Failures Due to Lack of Planning

Improper Succession Planning

Inability of an owner to maintain operating expenses or cash flow after becoming disabled

Tax Burden and Regulations

Lack of Key Employee Protection

37% Fail As A Direct Result Of:

FOUR MAJOR AREAS OF EXPERTISE

Succession PlanningPlanning for the disposition of the business so the

unexpected doesn’t disrupt or threaten it’s survival.

Up to 100,000 businesses a year face closure due to the lack of effective

succession planning.

43% of businesses fail within five

years following a major business

continuance disaster and 29% fail within the first

two to four months

Small Business Transitions, Copyright 2007

BECAUSE FAMILY MEMBERS, FOLLOWING THE DEATH OF AN OWNER, ARE SELLING THEIR COMPANY SHARES MORE AND MORE OFTEN,

PROPER SUCCESSION PLANNING IS BECOMING

EXTREMELY IMPORTANT FOR THE SURVIVAL OF

THE BUSINESS.

According to the Dept. of Trade and Industry’s Small Business

Service(SBS), Family members are becoming less

willing to join family businesses.

2. Helping protect the cash flow of an owner’s business and its operating expenses if they are prevented from working due to a covered illness or injury.

2. Helping protect the cash flow of an owner’s business and its operating expenses if they are

prevented from working due to a covered illness or injury.

According to the Small Business Development

Center in Troy Alabama, over 43,000 U.S. Businesses failed during the first half of 2007 as a result of an owner’s inability to maintain their business operating expenses after suffering a major illness or injury.

Dollar liabilities from these business failurestotaled over $20 billion

Do you know how self employed and small business owners are penalized for being successful by having to pay high taxes?

3. We use creative planning to help business owner/owners keep more of their hard earned income resulting in a reduction in taxes.

$1,000,000 (Gross Income)

- $600,000 (Business Expenses)

= $400,000 (Net Income)

- - $45,000 (Protection Planning)

= $355,000 (Net Income)

The business owner pays $35,000 (Taxes)

$1,000,000 (Gross Income)

- $600,000 (Business Expenses)

= $400,000 (Net Income)

The business owner pays $80,000 (Taxes)

BUSINESS OWNERS ACCEPT WITHOUT QUESTION THE IMPORTANCE OF INSURING THEIR FIRM AGAINST FIRE LOSS, FLOOD, OR MOST ACTS OF GOD.

YET, PROTECTION FROM THE LOSS OF A KEY

EMPLOYEE MAY BE FAR MORE IMPORTANT THAN MOST BUSINESS OWNERS REALIZE

Journal of Small Business Management

STATISTICS SHOW THAT THE PROBABILITY OF LOSING A KEY EMPLOYEE IS 74% GREATER THAN A FIRE LOSS, FLOOD, OR MOST ACTS OF GOD

Entrepreneur Magazine, Sept. 2005, surveyed the effects of 100 small business owners (500 or fewer employees) who each had suffered a key employee loss.

They found that the loss of a key employee caused a 35% reduction in revenue over a six month working period. This reduction caused 14% of those companies to file for bankruptcy.

They found that the loss of a key employee caused a 35% reduction in revenue over a six month working period. This reduction caused 14% of those companies to file for bankruptcy.

Entrepreneur Magazine, Sept. 2005, surveyed the effects of 100 small business owners (500 or fewer employees) who each had suffered a key employee loss.

Ten percent of small business failures are due to bankruptcy.

Bankruptcy Filings

U.S. Small Business Adm., Advocacy Small Business Statistics and Research

Major Causes of Most Businesses Filing Bankruptcy Include:

THERE’S HOPE!

Survival Rates U.S. Small Business Administration

THESE ARE OUR FIRMS AREAS OF EXPERTISE. REMEMBER, THERE

ARE FIVE COMMON REASONS WHY BUSINESSES FAIL.

OUR MISSION IS TO HELP BUSINESS OWNERS AVOID THE

LACK OF PLANNING PITFALL AND NOT BECOME ONE OF THE

500,000 BUSINESSES THAT FAIL EACH YEAR.

The purpose of our presentation was to show you through statistics and examples why PROPER SUCCESSION PROTECTION PLANNING is important, how TAX BURDENS AND REGULATIONS can cause a business to fail, why having KEY EMPLOYEE PROTECTION PLANNING is important and how PROTECTING BUSINESS EXPENSES should something unexpected happen to the owner or key employee, are so valuable to the survival of a business.

CONCLUSION