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Success as a Financial Advisor For Dummies
book

Success as a Financial Advisor For Dummies

by Ivan M. Illan
December 2018
Beginner content levelBeginner
384 pages
9h 53m
English
For Dummies
Content preview from Success as a Financial Advisor For Dummies

Chapter 23

Divvying Up Your Business: Equity Participation

IN THIS CHAPTER

Bullet Building equity in your business

Bullet Acting like the founder you are

Bullet Selling portions of the business to team members

Bullet Taking the emphasis off equity

After creating a business entity, you need to start thinking about whether and how you want to use the business to build wealth. As the business earns more and more money, you could simply pull that money out of the business in the form of higher salary and bonuses. Another option is to leave the money in the business to build equity value.

Like any business, publicly traded or privately held, your financial advisory firm can have equity value. Once determined, this equity value gives a genuine market value to your firm’s ownership units (whether LLC units or C-corporate stock shares). Ascribing value to these units enables exciting methods to keep your business operating beyond your own functional career, and even your lifetime.

In this chapter, I describe various ways that building equity in your firm creates opportunity to grow and to compensate key personnel ...

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Publisher Resources

ISBN: 9781119504108Purchase book