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My Life's Protection
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PLANNING YOUR FUTURE

My Business
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Women Business Owners: Growing Companies, Growing Assets According to the Center for Women's Business Research:

• Women-owned firms employ 19.1 million people and generate $2.5 trillion in sales.
  
• 10.6 million firms in the U.S. are at least 50 percent owned by a woman or women. 48 percent of all privately-held firms are at least 50 percent owned by a woman or women.
  
• Women-owned businesses will spend an estimated $546 billion annually on salaries and benefits. Health benefits comprise the largest share of benefit expenditures, with 2004 spending estimated at $38 billion.

The Owner's Advantage
One reason women business owners may have more invested than those who work for someone else is because many working women don't have pensions. In fact, not only are women much less likely than men to receive pension income in retirement (30 percent of women compared with 47 percent of men 65 and older), and, for those who receive benefits, women's annual benefits are only half the amount received by men. (7) Women who manage their own businesses can choose whether or not to set up a retirement plan…and many do.

That's good news, because women as a whole don't save enough for retirement. Generally, women earn less, they're in the workforce fewer years, they live longer and they shoulder more of the caregiving duties for children and older relatives – so their money has to last longer.

Women's Growth
Between 1997 and 2004, the number of women-owned firms with employees has expanded by an estimated 28 percent, three times the growth rate of all firms with employees. There are 10.6 million majority-women-owned businesses, employing 19.1 million people and generating $2.5 trillion in sales. [Source: Center for Women's Business Research, Key Facts, 2005 nfwbo.org/topfacts.html]

To keep your precious commodity safe, ask yourself:

• Does more than one person share ownership in your business? If so, what would happen if one of your co-owners wanted to give up the business for retirement or another reason?
  
• What if the person were to become seriously disabled or die? What if he or she got divorced or went bankrupt? Could your business survive without this person?
  
• How would you value your ex-partner's shares? How would you pay for them?

Four Areas to Focus On

Business Planning: Whether you are just beginning your business, experiencing growth or decline, or looking to transfer your business responsibilities, there are financial steps you can take to work toward your goals.

Your Employees: Attracting and retaining productive employees is vital to the continued success of your business. Recent trends indicate that benefits are often even more important than salary in determining employee job satisfaction.

Your Key Employees and Partners: This involves two tracks – offering additional incentives to motivate and retain them, and protecting your business in the event of their death or disability.

Personal Planning: View your business and individual situations as integrated so that all your needs are addressed. However, maintaining a certain degree of separation between each provides you with increased protection.

 

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