You have Arrived!
You’ve come a long way, friend! Considering how many start-ups never take off, you deserve to feel proud of your skill at creating and sustaining a business. At this stage, you’re still focused on growth, while wanting to ensure sustainability and stability.
When businesses leave the start-up stage, they typically start to grow. Although a company can always use more cash, most growing firms can get by on their own limited resources. The business owner understands his or her business at this point, as well as the key competitors. Major customers have been identified. Often, additional help is needed in production, manufacturing, operations, or sales. Ideally, during this stage, consumer demand is established and increases, the company experiences increasing sales, profit margins increase, and a market is established.
As businesses crack the local market and manage their affairs efficiently, they become mature. Mature firms have achieved a certain amount of name recognition. Contacts are well-established, sales require less effort, the business produces a reliable stream of cash, and borrowing becomes easier. At this point, intensive marketing may be needed to increase or maintain market position, and there is little product innovation. Profit margins tend to stabilize.
Talk with one of our agents to learn more.
Depending on your line of work, you’ll probably need a suite of insurance products:
- Additional Employee Benefits: At this point you have developed a great group of loyal employees who have helped build your business into what it is today. Whether your business is small or large, it might be time to consider adding or replacing certain coverages your employees may need most. At Hibbits, we work hard every year for our clients to make sure the benefit plans in place are suitable and affordable.
Not sure if you have the best rate? Haven’t heard from your broker in a while?
- Key Man Insurance: At this stage of business an employer can readily identify key personnel that make the business so successful. this is a low cost and common protection piece for any size business. A company purchases a life insurance policy on the key employee, funds the premiums, and is the beneficiary of the policy. In the event that key person unexpectedly passes away, the company receives the proceeds to offset any loss of revenue and/or the expense of replacing the Key Man.
- 401(k) or SIMPLE IRA?: By now you have likely established a qualified retirement program for you and your employees. Most smaller employers will often select a SIMPLE IRA to start as fees and expenses are typically lower in this vehicle. However, at this point you and your employees may be capable of setting aside larger amount of income for retirement savings and a Safe Harbor 401(K) might make sense, especially if you are a C-Corp. Hibbits has financial planning partners in place to review these important differences to determine what might work best.
"We here at AGRU America, Inc. have been very please with the service Hibbits Insurance has given us over the years. We call with questions and are assisted quickly. They always listen to our ideas and concerns, and then address them accordingly. Everyone at Hibbits Insurance has become part of our family."
Vicki Thorton, CFO, AGRU America, Inc.