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by David Purcell

Owners are proud of their family owned businesses. To be successful, owners must plan thoroughly and work hard to carry out the plan. Successful business owners should be proud of their accomplishments.

Yet planning and hard work are frequently lacking in efforts to establish a viable blueprint for leaving the business behind. Reluctance to pursue proper succession planning is common. Combining family and business concerns is difficult.

If a proper estate plan is not in place, estate taxes must be paid within nine months of death. This does not give heirs a great deal of time to maneuver. Irreparable harm could result. Part or all of the business may have to be sold in order to pay estate taxes.

In a recent article by Diane E. Picard on the Financial Planning Interactive website, Gary Pittsford, a CFP in Indianapolis, recommends having a plan in place five years before the owner plans to exit the business. However, Martin M. Shenkman, an attorney and CPA, recommends creating a succession plan as soon as a business is started. Shenkman’s position considers that a false step into the path of an oncoming bus could rapidly accelerate the need for a succession plan. He has a point.

In fact, the best succession plan is basically an exit plan, and should be an integral part of a business plan. It should cover all possible eventualities of the business if it had to be turned over to someone else. This exit strategy should address retirement, death, disability, sale of the business, and any other possibilities that might impact the situation.

The succession plan should include life and disability insurance to ensure business operation if the owner dies or becomes disabled. Other strategies, such as an Employee Stock Ownership Plan (ESOP) or business alliances, could provide operating capital or management in extreme circumstances. The details of how the business should be sold or liquidated, if that becomes necessary, should be included.

According to Shenkman, the liquidation or selling option is frequently overlooked. Parent-owners often fail to consider that the children might prefer capital to pursue their own ambitions, rather than the mantle of family business manager.

Dealing with family succession can be more difficult than creating a business plan. Emotions come into play. Problems in family relationships impact planning. Reluctance to confront these problems openly is common.

Children might not want to take over a parent’s business. Siblings may disagree over who should run the business.

In her article, Picard quotes Roy Ballantine, a financial planner in New Hampshire, who stresses that business goals, values and objectives should be the controlling factors in business decisions, not kinship.

Owners are often reluctant to consider liquidation or sale of the business, even if the children are not interested in taking over. But sale or liquidation may be the best choice.

Some useful questions when considering a succession plan are:

* How many children have shown the desire to run the business?

* How many children actually are capable of running the business?

* Which child should be in charge if more than one is willing and able?

* What family problems might arise should the choice for leader actually succeed to that position?

* If only some of the children are interested and capable in managing the company, how will the other children be compensated in the estate plan?

* Should in-laws be considered in the succession mix?

* How should the transition take place while the owner remains capable and active?

* Are there other choices, such as a temporary or “bridge” manager, a current employee, a non-relative, or another entire business that might become the business manager?

* What is the best alternative and the priority for all alternatives in case of an unexpected disability or death of the owner?

Financial and estate planners underscore the need for open communication and family meetings in succession planning. Strategies, such as generation skipping and gifting, should be considered. Finance, corporate, tax and estate planning laws are all part of the succession equation.

Answering the basic questions, reviewing the alternatives and their impact, and a continuing dialogue among family members are crucial components in a plan for succession. With appropriate guidance, a business owner can create an effective succession plan to keep the family together and maximize the probability of continued business success.

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Your Photo Shoot: Dressing To Impress

Increase your chances for true portrait happiness by following these clothing tips.

Think about the image you want to project in your portrait—conservative, friendly, artsy, approachable—and dress accordingly. When in doubt, professional is always good, and friendly usually is too. If you’re unsure what to wear for a business portrait session, it’s hard to go wrong with conservative business attire. Deep colors—such as navy blue, gray and brown—are great jacket choices. Avoid pure black jackets if possible, although it’s better than a jacket that’s too light. For shirts, try to avoid patterns or too-vivid a color. Yellows, blues, grays and off-whites are better than pure white.

Gentlemen, feel free to add a splash of color with a tie, but remember that a solid color—like red or blue—or a very minimal pattern will always photograph better than a distracting tie with multiple colors and a bold, eye-catching pattern. If you’ll be wearing jewelry, simple and conservative is better than big and bold.

To dress for a slimming effect, remember:

* Darker colors are slimming. Light colors are not.

* Solid colors are slimming. Bold patterns are not.

* A single color from head to toe is slimming.

* Vertical lines are slimming. Consider vertical pleats, thin stripes and V-necks. Avoid horizontal lines.

* Single-breasted jackets are more slimming than double-breasted.

* For full-length or group shots avoid a lot of pockets, especially those that are bulky.

* Heels add height and are slimming.

* Wear the proper size. Avoid clothes that are too tight or too baggy.

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by Matt Berkley

Every now and then Bill Sawalich gets a call from someone wanting him to shoot a family photo or maybe take a daughter’s senior picture. He tells them no. Not because he doesn’t like them. Not because he doesn’t have the equipment. Certainly not because he doesn’t want the money. “It’s just not my job,” he explains.

Sawalich is member of what some designate as a dying breed: professional/executive business photographers. As a manager of photographic services with Barlow Productions, he does professional work for professional clients. “We do different things and work towards different results than general photographers. We get a lot of customers who are putting the photos we take on their websites so prospective clients can see who they’re dealing with,” he says.

Ultimately, executive photos are promotional tools. They can be plastered on business cards, brochures, proposals, newsletters, direct mail pieces, etc. But, by far, the photos are most frequently used to accompany press releases. Carol Kovacik, senior vice president with Millennium Communications Inc., makes an effort to attach professional shots with every press release she can. Her reasoning is simple: Attractive images draw attention. And not only from the editors. “People don’t have time to read every announcement when they’re quickly browsing through publications, but when they see the photos, the customers get more comments about it and more recognition.”

It all boils down to a person’s image, says Mike Haller, owner of Haller Concepts. His firm also serves a clientele heavily invested in business-to-business transactions. These companies must decide whether they want to portray themselves as professional or second rate, Haller says. “It’s definitely more of a perceived value when you have something professional done to create that image, making sure it’s first class as opposed to a photo that’s a straight-on camera shot.”

But regardless, Haller points out, the professional business photography has taken a big hit; due in no small part to the introduction of digital cameras. “You can go out and buy a $600 camera right now and be at almost a professional level.”

Sawalich can’t help but shake his head when he sees amateurs at work. “Everyone who has a digital camera thinks he or she can snap a few shots and they’ll look great,” he says. But they’re not fooling anyone. Professionals, such as Sawalich, know not only about flattering lighting for different skin tones and body shapes, but also how to best pose subjects, how to elicit comfortable reactions, what angles look good, and how a subtle turning of a shoulder or tilt of a head can make a big difference.

“It’s certainly more about the interpersonal relationship and the knowledge that a photographer has about how to bring out the best in a subject, whether it’s how you light them, how you pose them and how you interact with them,” he explains.

In a fast-paced, high-tech world, businesspeople still enjoy personal connections, Sawalich says. “We get a lot of people who use business portraits to personalize their proposals, their marketing materials and business cards to show clients the person they will be dealing with. Ultimately this affects the bottom-line because you aren’t dealing with some faceless entity, you’re seeing a person, looking at his or her picture, and consciously or not saying to yourself, ‘I trust him, he looks like he knows what he’s doing.’”

Kovacik always recommends that her clients use a professional photographer. One of the reasons being image consistency. “If you’re going to have everyone in the company have a headshot, we like to have the same background and look to the photo. If you do it on your own, you’ll have people set against different walls and you won’t have consistency for use in a website or brochure, etc.”

Before committing your business to photographers, Sawalich says, make sure to take a close look at their portfolio. “See their work,” he advises, “whether that means doing it online or calling to schedule time to come in and take a look at samples or getting them emailed. Everybody’s idea of a professional looking business portrait might be slightly different.” Most importantly, he says, you shouldn’t have to compromise by going to someone without the right experience. Shop around. There are plenty of options.

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