3900 N. 10 th St. STE 970 McAllen, TX (956) ext 29

Kid Care Program

This presentation contains statistics put together by our firm through hours of research. The intention of this research is to inform and inspire businesses in our community in efforts to help them SUCCEED.

U.S. Census Bureau In the United States alone 500,000 businesses fail each year.

Gardner Business Solutions A Business Fails at a Rate of Every Three Seconds A Business Fails at a Rate of Every Three Seconds 10% of all Employment Businesses Open and Close Each Year 10% of all Employment Businesses Open and Close Each Year New Employer Businesses Have a 50/50 Chance of Surviving Five Years or More New Employer Businesses Have a 50/50 Chance of Surviving Five Years or More

25% of the Businesses that Fail Each Year Are MORE than 10 YEARS OLD

Working with business owners helping them avoid becoming one of the 44% of businesses who fail due to lack of planning.

Improper Succession Planning Improper Succession Planning Inability of an owner to maintain operating expenses or cash flow after becoming disabled Inability of an owner to maintain operating expenses or cash flow after becoming disabled Tax Burden and Regulations Tax Burden and Regulations Lack of Key Employee Protection Lack of Key Employee Protection

Succession Planning Planning for the disposition of the business so the unexpected doesnt disrupt or threaten its survival. Up to 100,000 businesses a year face closure due to the lack of effective succession planning. 43% of businesses fail within five years following a major business continuance disaster and 29% fail within the first two to four months Small Business Transitions, Copyright 2007

2. Helping protect the cash flow of an owners business and its operating expenses if they are prevented from working due to a covered illness or injury.

Do you know how self employed and small business owners are penalized for being successful by having to pay high taxes? Do you know how self employed and small business owners are penalized for being successful by having to pay high taxes?

3. We use creative planning to help business owner/owners keep more of their hard earned income resulting in a reduction in taxes. $1,000,000 (Gross Income) - $600,000 (Business Expenses) = $400,000 (Net Income) - - $45,000 (Protection Planning) = $355,000 (Net Income) The business owner pays $35,000 (Taxes) $1,000,000 (Gross Income) - $600,000 (Business Expenses) = $400,000 (Net Income) The business owner pays $80,000 (Taxes)

Entrepreneur Magazine, Sept. 2005, surveyed the effects of 100 small business owners (500 or fewer employees) who each had suffered a key employee loss. They found that the loss of a key employee caused a 35% reduction in revenue over a six month working period. This reduction caused 14% of those companies to file for bankruptcy. Entrepreneur Magazine, Sept. 2005, surveyed the effects of 100 small business owners (500 or fewer employees) who each had suffered a key employee loss.

The purpose of our presentation was to show you through statistics and examples why PROPER SUCCESSION PROTECTION PLANNING is important, how TAX BURDENS AND REGULATIONS can cause a business to fail, why having KEY EMPLOYEE PROTECTION PLANNING is important and how PROTECTING BUSINESS EXPENSES should something unexpected happen to the owner or key employee, are so valuable to the survival of a business.