Organization, efficiency, and discipline are the three primary steps of financial planning. Organization is knowing where your money comes and goes. An efficient portfolio means a better chance of profits, and discipline keeps you on the right track.

Statistics tell us that the average credit card debt per person - including all people who pay off their cards each month - is over $5,500. Folks don’t have a handle on the big picture of their personal financial world.

If you are one of these folks, you should know what the steps of financial planning are and get started today, either on your own, using resources on the Internet, or by hiring a financial planner.

The first and most important step of financial planning is organization. You can be a lot closer to your financial goals in life by organizing your finances and understanding money flows, both inflows (like your paycheck) and outflows (bills).

If your financial life isn’t terribly complicated, an Excel spreadsheet may suit your needs perfectly. However, using something a little more sophisticated, such as Mint, Quicken or other online budgeting tools may become necessary, as you and your financial life continue to evolve.

There are a million ways to approach organization, but the “how?” is nowhere near as important as “when?” Of course, the answer to when to start organizing is now.

Whatever method you choose, once you set up the system you should enter historic information as far back as 12 months (if you have it). This requires digging out the old bank, investment and credit card statements. It’s not as intimidating as it sounds. In today’s connected world, you can simply download the transaction history from your bank, investment or credit card companies, and import it directly into your Mint or Quicken file. You still need to go through things, but much of the data entry is done for you.

If you don’t have the time, the facility or the patience to enter this historic information, don’t give up. Tracking your information from today forward is valuable as well. Think about it: In a year, you’ll have 12 months’ worth of history in your system.

As you generate this history (or review the old history), patterns of your spending habits emerge. Perhaps you spend much more on golfing than you realized, or maybe your home decorating expenses were greater than your mortgage payments over the last year. Each of these patterns helps you to understand where your money goes. Once you know that, you can begin to control it.

Quicken or Mint.com also organizes your investments, which takes us to the next step: efficiency.

If you have a couple of old 401(k)s from former employers, you can look at all investment accounts from a top-down perspective, using these tools. For many folks, it may be the first time you see all your investments in one place.

This is when you adjust your allocation for a more efficient portfolio. You might think your investments were diverse enough but find that you bought the same investments in multiple accounts. An efficient allocation is about spreading your money across many different broad asset classes.

Now we’re into the place where the rubber meets the road. After you organize everything in an efficient manner, you need to maintain this organization over time. This requires discipline.

You need to balance your checkbook at the end of the month and keep your information up-to-date when you receive the credit card and investment statements. The automated tools help a lot, but you can’t just let it go on autopilot. You need to sort through the information to understand what’s going on with your cash flow and investments. You might need to change your spending habits or rebalance your investments if they get out of line.

But what takes the most discipline is maintaining your investment allocation as planned when the market is very volatile. You might be tempted to pull out of the market after a big loss or start buying in when the market has a huge run-up. Keeping you disciplined is quite often the major benefit of having a financial advisor, who can help you maintain the proper long-term perspective of your investment allocation and not let emotions rule the actions.

Like most businesses, CrossFit box owners providing health care benefits to employees find their budgets strained by spiraling medical insurance premiums. One solution, the Health Savings Account (HSA), which was created as part of the 2003 Medicare Act, is a relatively affordable—and tax efficient—alternative to traditional managed-care group plans.

The HSA is the more flexible successor to the Archer Medical Savings Account, which was introduced several years ago to help employees of small businesses get health coverage. Available since January 1, 2004, HSAs are being offered by a growing number of banks and insurance companies. While experiences among employers vary, early adopters of HSAs have generally found the plans to be effective in lowering or arresting health benefit costs.

An HSA may be opened by anyone who has a qualified health insurance policy with an annual deductible of not less than $1,300 for individuals, or $2,600 for families. A box owner may choose to offer a high deductible health plan (HDHP) to coaches and staff, or employees can be encouraged to sign up for policies on their own. Employers are permitted to contribute to the accounts of individual employees or may offer staff incentives to put money in themselves.

Since HSA funds are intended to pay for out-of-pocket medical expenses not covered by insurance, participants are permitted to make tax-exempt yearly contributions equivalent to the annual deductible of the insurance policy, up to a maximum of $3,450 for individuals and $6,900 for families in 2018. HSA enrollees age 55 or older may make additional contributions of up to $1,000 a year. The accounts are owned by the individual and are fully portable from job to job.

The tax advantages of the HSA are substantial. Contributions to and withdrawals from an HSA are tax-free, provided the funds are used to pay for qualified medical expenses. The investment earnings within the account also grow tax-free.

Any funds left over in an HSA at the end of the year can remain in the account, and the participant may start all over with contributions the following year. Enrollees who use little of the money in the account while continuing to make deposits could end up with substantial savings in retirement. Prior to age 65, non-medical distributions are taxed as part of gross income and are subject to a 10% penalty. After age 65, however, account holders are permitted to withdraw funds from an HSA for non-medical reasons by simply paying the income tax due.

Like any insurance plan, HSAs may not be the best choice for everyone. Lower income employees may find it difficult to contribute the funds necessary to cover the insurance deductible. And employees who use medical services frequently, such as young families or people with chronic health conditions, would derive little benefit from the tax advantages associated with the HSA. For these types of employees, traditional managed-care plans may be preferable. To meet the varying needs of coaches and staff, box owners may want to provide several health insurance options.

When launching an HSA plan as a benefit offering, it is essential that practice managers explain to employees how the accounts work. Some employees may initially balk at the high insurance deductibles associated with HSAs, but may be persuaded to sign up if the box owner(s) assumes part of the cost. Higher earning staff, in particular, may be drawn to the considerable tax breaks provided by the HSA. Over time, employees should come to appreciate the advantages of having greater control over their health care spending, and possibly seeing their account balances grow through regular saving.

If you’re like most taxpayers, you have no clue about the most effective tax strategies for these financial vehicles - especially if you lack access to expensive accountants and attorneys. Here’s some guidance.

Here are two common situations and innovative solutions that might help.

1.     You are self-employed and want to save tax. You feel you pay too much in taxes and want at least $17,500 of deductions. You are not an employee with a company that offers a 401(k) retirement plan but you still need more deductions than the $5,500 annual contribution ($6,500 if 50 or older) limit for a traditional individual retirement account.

Solution: a solo 401(k), aka an independent, one-participant or family 401(k). Using this vehicle in this case hinges on your being a sole proprietor or operator of the business with your spouse, and have no non-family employees.

Let’s say your spouse works in the business with you and is younger than 50. He or she can contribute up to $17,500 annually to the solo 401(k) plan, and this is called employee salary deferral of up to a full year’s compensation. If your spouse earns $17,500 this year ($18,000 in 2015) he or she can put all of $17,500 into the solo 401k(k) plan.

Assume you are 50 or older and now also contribute a maximum $23,000 (the maximum $17,500 contribution for 2014 tax year plus the $5,500 catch-up amount) employee salary deferral to a solo 401(k) plan. With an eye to even further deductions, you can also kick in the employer contribution - remember, you are both the employee and the employer - of 20% of your net earnings if you are a sole proprietor and 25% if your business is a corporation.

If you are 50 or older by this Dec. 31, you can save up to $57,500 in the solo 401(k), a combination of the employee salary deferral and the employer contribution. For 2015, the total maximum contribution increases to $18,000 salary deferral plus $6,000 catch-up plus $35,000 employer contribution, or $59,000 total.

Additional points:

You can still contribute to an IRA in addition to your solo 401(k) contribution.

Setting up a solo 401(k) can be inexpensive and easy. A reasonably priced independent 401(k) administrator can cost as little as $500 for set up and $500 in annual fees. Brokerage firms can offer lower costs but you then are tied to their investment choices.

If you have non-family employees and want to offer a workplace retirement plan, your normal 401(k) plan may come with potentially higher set-up and maintenance fees. You will also be subject to non-discrimination rules, meaning that you must allow your permanent employees into the plan and that your employer profit contribution must treat all employees - including you the owner - equally.

2.     You want to leave a tax-free legacy. In one excellent example, a retired nurse, married, 75, wants to leave a legacy to her 9-year-old twin grandsons. The most tax-effective strategy: Combine the Multi-Generational (MGIRA) strategy with a Roth IRA conversion.

The MGIRA, aka an extended or stretch IRA, allows you to designate a successor beneficiary to pass on funds you saved for retirement. Converting other kinds of IRAs to a Roth IRA offers many advantages, including eventual tax-free withdrawals of qualified distributions.

We structured a Roth conversion of the nurse’s $385,000 traditional IRA and paid the conversion tax with non-IRA funds. The two grandsons will each get slightly more than $2 million tax-free over their lifetimes in annual checks without ever raiding the principal.

Let’s hope they raise a glass to the grandma who will still be looking after them.

Early in the morning of December 20, 2017, the Senate passed the "Tax Cuts and Jobs Act" by a party-line vote of 51 to 48; (Republican Senator McCain was absent for medical reasons). Irrespective of your political affiliation, most would agree that this legislative achievement is the most sweeping overhaul of the US tax system in more than 30 years.

Naturally, the question we are all asking is “how does this impact me and my family?”

Well, that’s a challenging one to answer because everyone is different, but let’s examine the changes from 30,000 feet. Please remember, however, that this summary is by no means meant to be considered tax advice – you should consult your advisor to determine how it might impact you personally.

Implications for the US Economy?

By almost all accounts, the Tax Cuts and Jobs Act is predicted to raise the federal deficit by billions of dollars – and perhaps as much as $2 trillion over the next 10 years.

The big question is how much economic growth the new bill will create, thereby offsetting the increase to the federal deficit. The short answer is that no one knows with any certainty. Here are three perspectives:

• The Congressional Budget Office's analysis suggests that the cuts would add $1.4 trillion to the deficit by 2027. That estimate does not include the amount that would be offset by the economic growth spurred by tax cuts.
• Treasury Secretary Steven Mnuchin predicts a “net reduction” to the national debt as a result of the new bill.
• Speaker Paul Ryan told NBC’s Savannah Guthrie that “nobody knows” if the tax bill will create enough economic growth to negate its cost.

The answer is probably somewhere in the middle.

Highlights of the Bill

The bill is complicated and long – at least 400 pages at last count. In addition, many of the changes, especially the personal tax breaks, are considered temporary – meaning they go into effect in 2018 but expire after 2025. The reason for this expiration date is because it allows the Senate to comply with what we might consider odd "reconciliation" rules that block a Democratic filibuster, which the Republicans would not have enough votes to overturn. The good news is that the Republicans have vowed to make the changes permanent – but let’s wait and see what happens – 2025 is a long way away…

Here is a quick summary of other provisions of the tax bill:

• The bill would create a single corporate tax rate of 21%, beginning in 2018, and repeal the corporate alternative minimum tax. Unlike tax breaks for individuals, these provisions would not expire.
• The bill would retain the current structure of seven individual income tax brackets, but in most cases, it would lower the rates:
• the top rate would fall from 39.6% to 37%;
• the 33% bracket would fall to 32%;
• the 28% bracket to 24%;
• the 25% bracket to 22%;
• the 15% bracket to 12%; and
• the lowest bracket would remain at 10% and the 35% bracket would remain unchanged.
• The bill would raise the standard deduction to $24,000 for married couples filing in 2018 (from $13,000 under current law), to $12,000 for single filers (from $6,500), and to $18,000 for heads of household (from $9,550). These changes would expire after 2025.
• The bill would end the individual mandate, a provision of "Obamacare" that provides tax penalties for individuals who do not obtain health insurance coverage, in 2019. While the mandate would technically remain in place, the penalty would fall to $0.
• The bill would temporarily raise the child tax credit to $2,000, with the first $1,400 refundable, and create a non-refundable $500 credit for non-child dependents.
• The bill would limit the application of the mortgage interest for married couples filing jointly to $750,000, down from $1,000,000.
• The bill would cap the deduction for state and local taxes at $10,000 through 2025.
• The bill would temporarily raise the exemption amount and exemption phase-out threshold for the Alternative Minimum tax – for married couples filing jointly, the exemption would rise to $109,400 and phase-out would increase to $1,000,000.
• The bill would temporarily raise the estate tax exemption for single filers to $11.2 million from $5.6 million in 2018, indexed for inflation. This change would be reversed after 2025. 

Final Thoughts

There are a ton of other changes to the tax bill as well as changes that were proposed in earlier versions that were nixed in the final bill. For example, the original version proposed changes to Health Savings Accounts, but the final version does not.

There were discussions that the traditional 401(k) contribution limits would fall, but the final bill leaves those limits unchanged (currently $18,000 or $24,000 for those aged 50 or older).

The point is that it’s critically important that you consult your advisor to determine how this new tax bill might impact you and your family.

Since the advent of the “dual income with children” generation, employer-sponsored flexible benefit plans have become very popular with employees who appreciate the opportunity to choose options addressing their specific needs and budgets. Employees are able to select, within certain limitations, a variety of benefits without duplicating existing coverages and to tailor options to their cash flow constraints. With the Internal Revenue Act of 1978, employers are able to attract and retain employees with a cost-effective method called Section 125 cafeteria plans.

Because individual and family needs are so diverse today, as a business owner, it is imperative that all available options are reviewed with a qualified professional to determine, based on your census of eligible employees, which items you should include on your menu. Among the choices usually offered are:

1. Medical and dental insurance at various premium costs and coverages

2. Spending accounts for unreimbursed medical benefits and dependent care

3. Savings accounts

4. 401(k) retirement plans, including deferred profit sharing and stock bonus plans

The employee’s portion of the cost of benefits is typically made with pre-tax dollars in the form of a salary reduction. This type of arrangement additionally benefits employees by reducing their taxable income, because costs associated with cafeteria plans are not considered wages. However, you may decide to “bonus” the employee’s portion of the cost rather than use a salary reduction plan.

Employee’s Added Value

Employees often consider cafeteria plans a big plus because an employee covered under a spouse’s health plan with another employer will not need health insurance and may choose another benefit in its place. On the other hand, a single employee might not select the same options as an employee who is married with children. In addition, younger and older age groups have different goals and lifestyles.

Employer’s Added Value

Employers equally benefit from cafeteria plans because the reduction in payroll associated with such plans may also substantially reduce FICA (Federal Insurance Contributions Act) and FUTA (Federal Unemployment Tax Act) taxes. Taxation is avoided as long as plan participants make their selection of qualified benefits before any cash benefit can be received.

A Win-Win Situation

Some employees may lack a complete knowledge of insurance and retirement plans. Offering your employees a Section 125 cafeteria plan may provide you with an opportunity to help your employees become better educated to make wise selections, as well as communicate to them the dollar value you are providing with the plan. You might wish to consider acquiring the services of an employee benefit specialist to counsel your workers, discuss the options available, assist in the enrollment process, and continue to walk with you while the plan is in force at your business.

We are not permitted to offer, and no statement contained herein shall constitute, tax or legal advice. Individuals are encouraged to consult with a qualified professional before making any decisions about their personal situation.

This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial advice. All investments are subject to risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. 

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

Small Biz owners should conduct an annual assessment of their personal finances. Owners of small businesses have much the same concerns as everyone else, except they are personally responsible for the fortunes of their enterprise. In a sense, a small business is like a family. And these are important families in American economic life. After all, small business is vital to the U.S. economy, employing half of private-sector workers and creating two-thirds of net new jobs, according to federal data.

Here are 10 tips to follow in weighing a small business owner’s financial plan:

Budget/Saving. The general financial planning rule is that you should save AT LEAST 10% of your income on an annual basis. You should also review short-term and long-term goals to ensure you are saving enough to meet your objectives. 

Maximize Contributions to Retirement Plans. Depending on the size of the company and number of employees, there are many different methods to save for retirement. On an annual basis, business owners should work with their advisors to determine the most appropriate savings vehicle. Retirement plans include: 401(k)s, individual 401(k)s, individual retirement accounts, Simplified Employee Pension (SEP) IRAs, Roth IRAs, defined benefit and defined contribution plans. This will not only help achieve the goal of saving 10% of your income, but it also can help minimize taxes.

Create/Review Estate Planning Documents. It is important to create wills, living wills, medical and financial power of attorney documents. These documents should be reviewed annually as your personal goals and estate laws change.

Life Insurance. Various types of life insurance are available, including whole life, variable life, universal life, universal variable life and term policies. They provide a death benefit when the owner of the policy passes away. It is important to review your policies yearly to ensure the coverage is adequate to protect your loved ones. Also, financial situations may change, and you may no longer need the full amount or type of coverage you own.

Disability Insurance. Statistically, you have a greater chance of premature disability than premature death. Therefore, it is very important to own adequate coverage to provide for you and your dependents if you are not able to work. Annually, you should review your policy for the type and amount of coverage. 

Business Insurance. As a business owner, it is important to own insurance that will allow your company to run if you are unable to actively participate in its daily operations. This insurance may be used to hire a person to substitute for you or to replace income from your business if the company no longer exists.

Long-Term Care Insurance. Due to the increasing costs of health care, long-term care insurance policies are evolving to deal with them. Many older policies have become more expensive to maintain or no longer provide enough coverage to meet long-term care expenses.  Each year, review the costs and necessity of these policies.

Education Planning: 529, Coverdell, Uniform Gift to Minors Act (UGMA), Uniform Transfer to Minors Act (UTMA) Plans. Much like health care costs, college education expenses have increased well beyond average inflation levels throughout the past decade.  Several college savings vehicles are available to provide tax advantages and an array of investment options for college saving. These savings plans require thorough annual review of performance and expense levels. 

Tax Planning. Annually, you should meet with your accountant to discuss tax-planning strategies. Tax laws frequently change. In addition, there may be changes to your business that could affect your taxes both at the business and individual level.

Investment Allocation. Review your entire investment portfolio to ensure it is allocated to meet your current and future goals. As your goals and needs change, your portfolio allocation should be readjusted accordingly.

We are not permitted to offer, and no statement contained herein shall constitute, tax or legal advice. Individuals are encouraged to consult with a qualified professional before making any decisions about their personal situation.

This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial advice. All investments are subject to risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. 

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

Sometimes it’s hard to tell if you need professional help for a problem or if you can handle it yourself. Whether it’s taking care of a common cold, fixing the sink, changing the oil in your car or doing your own taxes. The same question often arises about finances.

It happens all the time - financial questions pop up that you consider silly or stupid so you feel like you must handle alone and you don’t seek help. This is not the best course. As happens often in life, not reaching out to a professional can delay you reaching your goals and cause you to incur more out-of-pocket expenses and lots of headaches.

Here is the thing: there are no stupid questions when it comes to your finances. Don’t ever sit on the sidelines and fear asking a question or think you’re unqualified to go to a planner. Solid and respectable planners let you know if they can’t help you and refer a professional who can. They also let you know if they think you can plan your finances yourself.

Here are signs you may need a financial planner:

You recently married

To merge or not to merge finances is a huge question: emotions to contend with, forms to update, cash flow to track, debts to pay down, goals to lay out and spending habits and needs to reorganize and prioritize.

Communication during this transition helps you navigate possible questions about taxes, investment allocation updates, selecting benefits, joint roles in management of the household, deciding whether to maintain separate bank accounts and more.

You own a business

Whether considering starting your own business or a long-term entrepreneur, you likely need to know how to prioritize goals, pay yourself while keeping the operation running and the best way to manage cash flow on an income that fluctuates monthly.

Not to mention saving for retirement, obtaining health insurance and protecting you and your family against a loss in income from death or disability.

You want to make a big purchase

Simple budgeting often enables you to handle large purchases. If you look to buy a first home or make another sizeable investment, understanding the overall effect on your cash flow, lifestyle and future goals looms large.

How much home can you afford? What’s your budget for home maintenance? What other goals go on the back burner? What about your future savings?

You make a career change

Job or career transitions also bring changes in income and benefits. Make sure you maximize your company benefits, leave no retirement accounts behind and ignored, plan appropriately for income fluctuations, take into account future job growth or career prospects and consider the transition’s overall influence on your lifestyle.

Your family’s growing

A baby comes with a slew of considerations: ensuring you have an emergency fund of three to six months’ expenses adjusting your spending for child care, groceries and medical costs and updating your estate plan and insurance coverage in case something happens to you, among many other needed updates.

At the End of the Day

The first step in asking for help always seems the hardest. The assistance and feedback may surprise you when you open up to the idea that you need not handle all financial questions solo.

And it makes the experience much more enjoyable.

We are not permitted to offer, and no statement contained herein shall constitute, tax or legal advice. Individuals are encouraged to consult with a qualified professional before making any decisions about their personal situation.

This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial advice. All investments are subject to risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. 

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

Developing a Successful Business Plan

A well-crafted business plan can be a blueprint for success. This multifaceted tool is as important to established CrossFit owners looking to grow their business as it is to budding entrepreneurs.

A business plan defines your business, outlines your goals, and lays a strong foundation for achieving them. A valuable resource for investors and lenders, a strong business plan can help you secure capital for expanding operations. As your Affiliate grows, your plan will help you respond to changes in the marketplace and fitness industry. Let’s take a closer look at three essential business plan elements: the executive summary, the business description, and the financial data.

 1. Executive Summary

First impressions are everything, and this quick snapshot of your Affiliate has the potential to attract or discourage investors. This is your opportunity to effectively summarize your company’s history and articulate your mission:

• Briefly explain the employee and management structure.
• Describe your location and facilities.
• Provide relevant financial information.
• Disclose strategic corporate relationships.
• Highlight key accomplishments.

By the end of your executive summary, you want your readers to know about your products and/or services, understand the demand for your business, and believe in your potential for success.

 2. Business Description

After a compelling introduction, it’s time to provide details. Here, it is important to accomplish the following:

• Describe your business.
• Identify your Affiliate’s niche in the marketplace.
• Demonstrate your industry knowledge.

As you know, there must be a market for your products/services, and your business plan can outline how you are going to attract and maintain that market. Ask yourself some basic questions:

• What are you selling?
• Who are your clients?
• Who is your competition?
• What makes your gym unique?

In answering these questions, demonstrate the ways in which various components of your business work in concert to accomplish your objectives. For example, how does your location support your business? What experience do you bring to your operation? What are the specialized skills of your coaches? Remember, your intent is to construct a winning approach and make your readers confident about your business.

3. Financial Data

Here, startups need to project future performance, while established Affiliates need to detail the historic performance of their companies, as well as project future earnings. Include three key financial documents:

• Income statement
• Balance sheet
• Cash flow statement

Lenders in particular may focus on your cash flow statement, which details how money is earned and spent in your business, because poor cash-flow management can sink even profitable businesses. From their perspective of the lenders, accurately projecting cash flow is essential to meeting your financial obligations. Lending aside, effective cash-flow management can benefit your business by helping you maintain liquidity, minimize your credit obligations, and minimize your interest expenses. Check out my blog on 10 Ways To Improve Your Affiliate Cashflow for more information.

The Sky’s the Limit

Think of your business plan as a building with many floors, each fulfilling a function. The function of the foundation is, of course, to present the information that can make your plan a tool for raising capital. If you shortchange this part of your plan, it’s possible that your Affiliate will barely get you off the ground.

Additional functions of a well-engineered business plan include helping you manage daily operations, make decisions in line with your ultimate objectives, and stay on track with your plans for growth.

To keep pace with change, review your plan every year and revise it, as needed. If your business plan helps your business adapt to market fluctuations, industry developments, and business advances, the sky’s the limit.

We are not permitted to offer, and no statement contained herein shall constitute, tax or legal advice. Individuals are encouraged to consult with a qualified professional before making any decisions about their personal situation.

This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial advice. All investments are subject to risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. 

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

If you are like many Affiliate Owners, there may never seem to be enough hours in the day. Yet, once a box reaches a certain size, it can become increasingly difficult to rely solely on the efforts of one person alone to keep things running smoothly. Although you may realize that empowering your coaches will free up some of your valuable time so you can attend to other aspects of the business, you want to be sure the quality of your services doesn’t suffer. Given these concerns, delegating authority can be challenging.

If you think you could benefit by loosening the reins a bit, here are some suggestions to help make the process of delegating responsibility easier:

Make gradual changes.

A gradual transfer of power can help you gauge how much responsibility your coaches are ready to take on, while providing you with the opportunity to develop your leadership skills. Even if you’re pressed for time, resist the urge to unload duties onto unprepared workers. A slow approach will help ensure your workers have adequate time to receive the necessary training to successfully assume their new duties.

Select managers carefully.

Choose individuals in whom you have confidence and who possess the skills and abilities to meet or exceed your expectations. Recognize that not everyone has the ability to be an effective manager. Although a coach may handle certain tasks well, he or she may not excel at supervising others.

Clarify the scope of responsibility.

One of the keys to a successful transition is to clarify the scope of the responsibility you are assigning. Is it for a specific task or a broad responsibility? Also, inform your new manager how much leeway he or she will have when carrying out the newly delegated duties.

Support those you appoint.

Allow time for everyone to adjust to the new chain of command. Once you delegate authority, announce the decision to your employees. Then, support your new manager, even if you must mediate disputes with employees who prefer doing things the “old way.” If you witness an employee trying to make an “end run” around the newly appointed manager, firmly reiterate your support.

Be open to input.

Strive for a balance between keeping things as they were when you were in charge, and giving your appointee a say in how things will be managed going forward. Try to welcome your new manager’s input if he or she brings in a fresh perspective.

Let go.

Once you see that your new manager is handling his or her authority well, let go. One of the greatest rewards of delegating responsibility is that it can free you up to shift your attention to larger business concerns.

Once an Affiliate reaches a certain size, many owners find they can no longer handle all aspects of the business effectively. Delegating authority is a necessary skill to allow your business to flourish at this stage. These suggestions can help you learn to relinquish responsibility to others, adding more hours to your day and leaving you free to attend to the one job only you can handle—furthering your company’s growth.

We are not permitted to offer, and no statement contained herein shall constitute, tax or legal advice. Individuals are encouraged to consult with a qualified professional before making any decisions about their personal situation.

This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial advice. All investments are subject to risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. 

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.