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You’ll also benefit from mortgage interest and depreciation deductions at tax time. For one, you won’t be able to easily pick up and move on.And if you’re structured as a flow-through entity, you’ll need to decide how the owners will share the cost of buying and maintaining the building.
New initiatives, for example, usually don’t begin to show tangible results for some time, which can prove frustrating.
Outsiders are more likely to be impartial and have no vested interest in your decision.
They might help you realize that someone who’s not in your family is the best choice.3. Once you’ve settled on a few candidates, hold private meetings with each to discuss the leadership role.
Make time for strategic planning just as you would for tending to an important customer relationship.
Time well spent Effective strategic planning calls for not only identifying the right business-growing initiatives, but also regularly re-evaluating and adjusting them as circumstances change.
You may also have less freedom to change or rearrange space — not to mention ever-increasing rent and the loss of mortgage interest and depreciation tax deductions.
If you decide to move, though, it’s easier to leave a rented office than to sell one you own. Will the present value of the capital appreciation you ultimately gain when the property is sold be greater than the current cash flow advantage you’d likely have under a lease?
Rotate the jobs each candidate performs, if possible.
Let them gain experience in many areas of the business, gradually increasing their responsibilities and setting more rigorous goals.
But perhaps the most significant hurdle is the view that strategic planning is a time-sucking luxury that takes one’s focus off of the challenges directly in front of you.
Although operational activities are obviously essential to keeping your company running, they’re not enough to keep it moving forward and evolving.
Keep in mind that the building need not be owned in the same proportion as the business itself. You’ll have to delegate responsibility for arranging and overseeing activities such as exterior maintenance, cleaning, and paying taxes and insurance.