The Wrap

The final stage of the Business Owner Lifecycle is one that every entrepreneur dreams of—the Freedom Stage. In this stage, business owners reap the rewards of their hard work to either enjoy retirement or change direction to pursue a new passion or investment. The emphasis is no longer on the success of the business, but rather on the lifestyle of the now-former business owner. 

In this episode, special guest Greg Sellers, CPA, AEP®, a Member of Warren Averett’s Tax Division and a leader in the firm’s Estate and Trust Service Area, shares advice on what you can do now so you can look forward to your own Freedom Stage. 

In this episode, you’ll hear: 

• A description of the Freedom Stage (and how it doesn’t always include retirement)
• The challenges to entering the Freedom Stage 
• Tips regarding estate and legacy planning to prepare yourself for retirement
• Advice on projecting cash-flow needs, keeping estimates conservative and reevaluating often
• How to leave a legacy while also starting a new venture (and how to protect your assets and wealth)

Listen to the full series here: 

• Intro Episode: Episode 069 | The Entrepreneurial Journey and the Cycle of Business Growth
• Startup Phase: Episode 070 | What Does It Take for a Startup To Succeed?
• Growth Phase: Episode 071 | Navigating the Dynamics of a Growing Business
• Maturity Phase: Episode 072 | Sustaining Success in an Established Business
• Exit Phase: Episode 073 | Strategies for a Successful Business Exit

Entrepreneurs pour so much passion and effort into starting, growing and maintaining their businesses. But eventually, all business owners will enter a transition stage where the business will shift to a new set of hands, either through a transaction or by training a new generation of leaders to carry on the work—both of which can be emotional and challenging experiences. So, what does a successful business exit look like, and what can entrepreneurs do to prepare themselves and their business for a positive transition experience?

In this episode, Hanny Akl, CPA, CFE, CEPA, CVGA, leader of Warren Averett’s Transaction Advisory Services Practice Group, joins our hosts to dive into the Exit Phase of the Business Owner Life Cycle and share his experience guiding business owners through this transitional stage.

In this episode, you’ll hear:

• Why it’s never too early to plan for your exit
• Indicators that a business owner may be ready for an exit or transition
• Why it’s so important to have a good team of advisors helping you plan for this stage
• The eight types of exit options and their pros and cons
• Factors that could detract from the value of your business

Resources for additional information:

• Document: Exit Options – Pros & Cons
• Document: Maximizing the Value of Your Business
• Blog: How to Exit Well: Aligning the Sale of Your Business With Your Personal Financial Plans
• Blog: 5 Common Pitfalls in M&A Transactions (and How To Avoid Them When Selling Your Business)
• Podcast: Episode 009: I Put a Sell on You
• Podcast: Episode 010: Don’t Let the Sell Run Dry

The term “mature company” might bring up images of a stale, archaic or out-of-date business. But in reality, a business in the maturity stage of the business owner lifecycle is a successful organization with a well-known product or service, loyal customers and steady growth. So, for businesses that have grown into this season of stability, what does success really look like?

In this episode of The Wrap, our hosts discuss the characteristics and opportunities of established businesses with special guest Stephen Schaaf, CPA, a Member of Warren Averett and leader of the firm's Manufacturing & Distribution Practice Group. 

In this episode, you’ll hear: 

• The defining characteristics of an established or mature company
• About the importance of holding on to stability while continuing to innovate
• Strategies for maintaining efficiency and profitability
• Discussion around the specific key performance indicators (KPIs) for mature businesses, especially around productivity, quality and output
• How a business process review can help ready a mature business for the next stage of the lifecycle
• About the need to shift focus from growth to the people and processes that keep a business running 

Resources for additional information:

• Blog: Business Process Optimization: 5 Ways To Improve Your Systems and Processes
• Growth Phase: Episode 071: Navigating the Dynamics of a Growing Business
• Startup Phase: Episode 070: What Does It Take for a Startup To Succeed?
• Intro Episode: Episode 069: The Entrepreneurial Journey and the Cycle of Business Growth

After moving past the risky startup stage, a business enters the growth phase of the Business Owner Lifecycle, which presents its own opportunities and challenges. During the growth phase, entrepreneurs must shift from working in the business to working on the business, requiring a new set of skills and a keen understanding of potential risks and opportunities.  

Will Aderholt, CPA, CCIFP, is a Member of Warren Averett’s Tax Division, and in this episode, he joins The Wrap to discuss the Growth Stage of the Business Owner Lifecycle and how entrepreneurs can set themselves up for sustainable success. 

In this episode, you’ll hear:

• About the shift in mindset needed from the excitement of the startup stage to the hard work of business growth
• Insights around cash flow and cash management
• Characteristics of a growing business and the types of growth
• How to balance risk-taking with cautiousness 
• Tips on reinvesting in the business 
• The indicators that a company is transitioning from the growth stage to maturity

Resources for additional information:

• Podcast: Episode 069: The Entrepreneurial Journey and the Cycle of Business Growth
• Podcast: Episode 070: What Does It Take for a Startup To Succeed 
• Blog: How to Create an Adaptable Business Plan That Can Roll With the Punches
• Blog: How to Exit Well: Aligning the Sale of Your Business With Your Personal Financial Plans

Millions of new businesses are formed in the U.S. each year, but statistically speaking, only a small percentage of those businesses will succeed. How can entrepreneurs make strategic decisions regarding investments and goal setting in order to move past the startup stage? 

In this episode of The Wrap, our hosts are joined by Yogesh Patel, CPA, CFE,—a Member of the firm with over 20 years of experience advising entrepreneurs and companies—as they discuss valuable insights on navigating the early stages of a startup.

In this episode, you’ll hear:

• Discussion around the realities of starting a new business and the characteristics of a successful startup
• Advice on when to seek additional capital
• How a willingness to pivot may be a key to success
• How to prioritize the key performance indicators (KPIs) your startup will focus on

Resources for additional information:

• Podcast: The Entrepreneurial Journey and the Cycle of Business Growth
• Podcast: Know and Grow [Taking Your Business From One Level to the Next]
• Blog: 4 Things To Do Before You Set Long-Term Business Goals
• Blog: How Much Working Capital Do I Need? (Plus Five Ways To Get It)
• Book mentioned by Yogesh: The Mom Test

Running a successful business requires more than just creating an initial business plan. Join us in our new series as we dive into the complete journey of a business owner, exploring every stage from startup to exit, with valuable insights on how business owners should navigate both their business and personal lives, depending on their company’s stage. 

In this episode, our hosts are joined by Sandy Coaker, CPA, Managing Member of the firm’s Montgomery office and Daniel Hughes, CEO of Envolve LLC, to discuss the key segments of the Business Owner Lifecycle: Startup, Growth, Maturity, Transition and Freedom.

In this episode, you’ll hear:

• Discussion around the five stages of the Business Owner Lifecycle
• How to use the stages to be more proactive rather than reactive
• How to position your strategic plan to be adaptable throughout the different stages of business
• Tips for succession planning
• Characteristics of a successful entrepreneur 

Resources for additional information:

• Podcast: Episode 48: Know and Grow [Taking Your Business from One Level to the Next]  
• Blog: 4 Things To Do Before You Set Long-Term Business Goals
• Blog: How to Create an Adaptable Business Plan That Can Roll With the Punches
• Blog: How to Plan For Succession: Preserving, Protecting and Passing on Wealth

The past few years have not been easy for the retail and consumer industry with pandemic shortages and restrictions, rising inflation and a changing workforce. However, the landscape is actually starting to look up again, with profit margins creeping back to pre-pandemic levels and opportunities in technology, hiring and business strategies on the horizon. 

 In this episode of The Wrap, our hosts are joined by Warren Averett’s Retail & Consumer Industry Group leader Branden Crosby, CPA, CGMA, and Charles Bailey, CPA, to discuss the current state of the industry and what business leaders can do to plan for future success. 

In this episode, you’ll hear:

• Specifics about how inflation is directly affecting prices 
• About the changing retail workforce and why it’s getting older
• How technology such as AI can help restaurant owners monitor the flow of customers and make their business models more efficient
• Information about beneficial ownership reporting and how it will affect most business beginning January 1, 2024
• The definition of a beneficial owner

Resources for additional information:

• Blog: What Is Beneficial Ownership Reporting? (And Other FAQs About Compliance)
• Blog: 10 Restaurant Metrics to Monitor for Financial Success
• Blog: 4 Things To Do Before You Set Long-Term Business Goals
• Blog: 7 Restaurant Finance Best Practices for Increasing Cash Flow
• Podcast: Making the Most of Your Staffing and Recruiting Efforts
• Podcast: Employee Retention and Recruiting in Today’s Competitive Environment
• Blog: How To Interpret a Restaurant Chart of Accounts for Valuable Insights
• Blog: Restaurant Industry Trends for 2023 (And How To Respond to Them)

In this episode, join our experts as they unravel the dynamic landscape of the Private Equity industry and offer insights into the latest tax strategies. 

Our host is joined by three of the firm’s Private Equity Industry experts, Floyd Holliman, CPA, David Legrand, CPA, and Adam West, CPA, to concisely explore topics that impact returns and portfolio holdings, from navigating regulatory changes to planning techniques for businesses.

In this Episode, you’ll hear:

• Discussion regarding the Tax Cuts and Jobs Act and how it will affect businesses in the upcoming tax season 
• Planning strategies to help businesses with inventory mitigate the loss of depreciation and amortization 
• Details regarding the changes Section 174 of the tax code and how it affects R&D expenses
• Advice about ERTC and how to make sure your business has proper documentation

This episode reflects our views at the time it was recorded.

Resources for additional information:

• Blog: Eight Private Equity Trends to Expect in 2023 (And How to Respond to Them)
• Blog: A Business's Guide to R&D Expense Capitalization and Amortization Changes
• Blog: 6 Tax Planning Items Ever Business Should Consider in Year-End Tax Planning
• Blog: Significant Changes To How Your Company Accounts for R&D Costs
• Blog: 5 Ways a Company Can Use the R&D Tax Credit

Real estate managers and developers have many concerns heading in to 2024, from rising interest rates and banking liquidity issues to uncertainties in federal legislation regarding tax cuts and allowances.

In this episode of The Wrap, Cristy Andrews, CPA, CGMA, leader of the firm’s Real Estate Practice Group, and David Borsos, Vice President of Capital Markets with the National Multifamily Housing Council (NMHC), join our hosts to discuss the current state of the real estate industry and opportunities for property owners, managers and developers. 

In this Episode, you’ll hear:

• About the challenges in real estate capital markets due to rising interest rates, housing shortages and decreased banking liquidity
• Information about the shifts coming in 2024 to the Tax Cut and Jobs Act regarding bonus depreciation allowances
• How remote and hybrid work are leading to shifts in property management
• Ways technology can provide solutions for the real estate industry to centralize data, combat labor shortages and avoid fraudulent resident screenings
• Strategies to control real estate management budgets while property tax assessments and insurance costs rise at historic rates

Resources for additional information:

• Blog: FAQs about 1031 (Like-Kind) Exchanges by Real Estate Investors
• Blog: 6 Tax Planning Items Every Business Should Consider in Year-End Tax Planning
• Blog: The Real Estate Professional Tax Status: Do You Qualify?
• Blog: Inflation Reduction Act Upgrades the Section 179D Tax Deduction (11.2022)
• Blog: The Principles of Proactive Tax Planning [Five Considerations for Business Owners]

Doing business with the country’s largest customer (the federal government) comes with requirements, opportunities and challenges that other organizations simply don’t have. So, what does it take to be truly successful as a government contractor?  

In this episode of The Wrap, Amber Stout, CPA, Jared Sharp, CPA and Todd McAdams, CPA, CGMA, MACC join our hosts to discuss the nuances of leading organizations to financial and compliance success in the government contracting industry. 

After listening to this episode, you’ll:

• Be familiar with the opportunities and challenges that are unique to the government contracting industry
• Understand how research and development expenses are capitalized and amortized—and one important nuance for government contractors
• Know the basic information you’ll need to provide to meet the unique reporting requirements in this industry
• Understand what really makes a “DCAA-approved” accounting system
• Know a few of the most common tax and business mistakes contractors make—and how to avoid them

Resources for additional information:

• Blog: A Business’s Guide to R&D Expense Capitalization and Amortization Changes
• Guide: DCAA Compliance: A Comprehensive Guide for Government Contractors
• Blog: How Can A Small Business Ensure DCAA Compliance?
• Blog: What Is Included in a DCAA Compliant Indirect Rate Calculation?
• Blog: Why A DCAA Compliant Chart of Accounts Should Be Your System’s Foundation
• Blog: What Are the Benefits of DCAA Compliance Consulting?
• Blog: Don’t Ignore These DCAA Accounting Policies and Procedures
• Blog: Tips for Protecting your Government Contracting Business with QuickBooks DCAA Compliance
• Blog: Three Broad Issues a DCAA Audit Can Uncover for Government Contractors
• Blog: A DCAA Compliance Checklist for Government Contractors
• Blog: Five Steps to DCAA Timesheet Compliance for Government Contractors
• Blog: How to Identify an Adequate Accounting System for Government Contracts [12 Important Elements]
• Blog: Determining the Best Accounting Software for Small Government Contractors
• Blog: Business Process Optimization: 5 Ways to Improve Your Systems and Processes