Capitalize on Opportunities Now
Multi-unit franchisees continue to face a unique set of economic challenges in the constantly evolving market. Despite Wall Street’s impressive 10% growth prediction for 2022 and 2023, the future remains uncertain.
Even in times of uncertainty, there are still growth opportunities available to multi-unit franchisees who have invested in succession strategies. For example, a slowdown in business acquisitions could create more favorable prices, while increased job opportunities could draw new talent to the market. To capitalize on these opportunities, it is essential for multi-unit franchisees to double down on culture to attract and retain the right talent and focus on their organizational playbook to scale processes and procedures efficiently and effectively within their growing organizations. This is how owners can manage the uncertainty and take advantage of any growth opportunities that present themselves.
Additionally, the recent increase in government spending is expected to have a significant impact on taxes, particularly estate and gift taxes, which could pose a particularly difficult challenge for family-owned businesses. To capitalize on opportunities in the present environment and make the most of the current $12 million exemption before it expires in 2025, it is essential to partner with a business advisor who can strike a balance between the tax advantages and the long-term business goals of the owner. It is essential for multi-unit franchisees to be mindful of the dangers of letting the “tax tail wag the dog.” While saving on taxes is an important part of estate planning, it should not be done to the detriment of overall business growth or success. It is important to weigh the pros and cons of any asset transfer or estate planning strategy to ensure that the long-term business goals are taken into account.
By taking advantage of the available tax exemptions and working with an experienced business advisor, multi-unit franchisees can plan for the future and ensure that their businesses are well-positioned in the current environment.
For more information on this topic, listen into the discussion: Strategies for Multi-Unit Franchisees to Succeed Despite Economic Uncertainties
Kendall Rawls knows and understands the challenges that impact the success of a family-owned business. Her unique perspective comes not only from their educational background; but, more importantly, from her experience as a second-generation family member employee of The Rawls Group - Business Succession Planners. For more information, visit www.rawlsgroup.com or email firstname.lastname@example.org.
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