Three Ways to Transfer the Family Business
I’ve had clients who have had to deal with business succession issues and so I invite John L. Wong to provide some insight into what business succession planning is and why business owners should think about it. As an Orange County Estate Planning Attorney, many of my clients own some form of small business. One of the first questions I ask is: “What’s going to happen to your business when you retire or pass away?” There are two very common responses: I’m going to transfer the business to my children; or I’m going to sell the business. I could certainly go through a bunch of hypotheticals to poke holes in these two responses, but often times, if the question was phrased differently, the issue becomes much clearer. “What would happen to your business if you died today?” After some reflection, common responses are: The business would fail; The business would be taken over by an employee. So how do ensure your business is transferred under the first set of scenarios instead of the second set? How do you ensure … Continue reading
3 Strategies to Increase Your Business Profits
Many businesses recently reviewed their profit and loss statements and took a closer look at the business’s profitability. This analysis usually prompts the question “how to increase my business profits?” Although this question could only be answered after becoming familiar with your particular business, below are 3 areas where small changes, if done right, could increase your profitability. Decreasing Bad Debt If your business model does not require customers to pay for products or services in advance, collecting on unpaid invoices is likely something you are all too familiar with. However, collection itself comes at a cost to your business. Not being able to recoup that collection cost limits most businesses’ incentive to pursue collection, rightfully seeing it as throwing good money after bad. You can tip the collection scale in your favor. The default rule that each party bears their own attorney’s fees may be modified by statute or by contract. That means that where the law does not provide for recovery of attorney’s fees, you and your customers could mutually agree that if you and your customer find … Continue reading
Age Discrimination in Hiring
I previously wrote about the age discrimination verdict against Staples. Last week, NPR published a story about a study by David Neumark and two other professors of economics at UC Irvine showing that the call-back rate for applicants drop as applicants’ ages increase. Older women witnessed lower call-back rates than older-men and “dropped by around a quarter when you go from the young group to the middle-aged group . . . . And they drop by another quarter when you go from the middle-age group to . . . around age 65.” Section 12940 of California’s Fair Employment and Housing Act prohibits age discrimination in hiring, selection for training programs leading to employment, and in other terms, conditions, or privileges of employment. Additionally, employers must “take all reasonable steps necessary to prevent discrimination and harassment from occurring.” Although discriminatory hiring practices are not always blatant, and many job applicants fail to get hired without knowing the true reason why, employers found in violation of the anti-discrimination laws wind up entangled in expensive lawsuits. One such lawsuit was a federal class-action lawsuit against … Continue reading