Imagine this: There’s an amazing bakery down the street that used to have lines out the door for their cakes and cookies. They were all the rage a few years ago, but lately, it seems a little quieter over there. What has changed for them? It could come down to one thing: either a lackluster or zero social media presence.
Having an active Facebook page to display their delicious treats, interact with customers, and advertise special offers could help them reach a broader audience and revive their busy days. Social media is a valuable tool for small businesses to remain relevant and engaged with their local community.
Indeed, managing social media can be tough for small business owners because of its rapid pace. Yet, by putting in some effort and creativity, you can recapture customers’ interest and revive excitement around your business.
Now, you might be thinking, “Isn’t Facebook a dying platform? Don’t the algorithms make it impossible for businesses to get seen?” Indeed, there is some truth to that. Organic reach, the number of people who view your posts without paid promotion, has declined. Yet, this doesn’t mean Facebook is useless for small businesses. In fact, it can be a powerful tool if you use it strategically. Here’s why:
Standing Out from the Crowd: Algorithms and Searchability
Facebook’s algorithms might favour personal connections, but that doesn’t mean business pages are invisible. Here’s the secret: business pages have different algorithms than personal profiles. This means you can optimize your content specifically for business goals, like driving website traffic or increasing brand awareness.
Additionally, Facebook’s searchability can work in your favour as a small business. By using keywords and relevant hashtags in your posts, you can help more people find your content. This can help you reach a wider audience and attract new followers who may be interested in your products or services. By staying active on the platform and engaging with your audience, you can build a strong online presence and establish credibility in your industry. Overall, with the right strategy and consistent effort, Facebook can still be a valuable marketing tool for small businesses looking to grow their online presence.
Plus, a Facebook page enhances the online visibility of your business. It functions as a digital storefront, including your bio, contact information, and a prominent link to your website. This information pops up in Google searches too, making it easier for potential customers to discover you.
Remember the imaginary small bakery I used as an example above? They could update their approach and use their Facebook page to showcase their daily specials, new menu items, and customer testimonials. By consistently updating their page with mouthwatering photos and engaging posts, they can attract more foot traffic. Additionally, by responding promptly to messages and reviews on their page, they can build trust with customers and improve their reputation both online and offline.
Public vs. Private Groups: Fostering Your Community
Facebook groups are a fantastic way to build a community around your brand. But should you go public or private? Here’s the breakdown:
Private groups: These offer a more intimate space for discussions and member interaction. Think of it as a loyalty club where you can share exclusive content, company news, links to your blog, and even host Q&A sessions. When members join using their personal Facebook pages, it creates an opportunity to share your business page within the group, encouraging interaction and promotion among members. However, keep in mind that referrals within private groups may not always send a notification to the tagged business due to privacy settings.
Public groups: While they offer a wider reach, public groups are also more susceptible to spam and negativity. Despite the potential drawbacks, public groups can be a valuable tool for reaching a larger audience and gaining exposure for your business. By sharing valuable content and engaging with members in a positive way, you can create a thriving community that supports your brand. Just be sure to monitor the group closely and enforce rules to support a positive and welcoming environment for all members.
Ultimately, whether you choose a private or public group, both can be effective in building relationships with customers and growing your business.
The Power of Paid Advertising (But Not Always)
Organic reach on Facebook has declined, and in some cases, paid advertising is necessary to effectively reach your target audience. While paid advertising can be a powerful tool for reaching a larger audience, it is important to consider the cost and effectiveness of each campaign.
Sometimes, organic reach can still be effective, especially if you have a strong community and engaging content. It’s important to test different strategies and measure the results to determine the best approach for your business. In the end, a combination of both paid advertising and organic reach may be the most effective way to grow your brand and reach your target audience.
So, should you revive your Facebook page or, if you don’t have one, should you create a new one? Definitely! There’s a whole community waiting to be discovered, and your small business has something unique to offer.
Over to You!
So, does your small business need a Facebook page? Without a doubt! But remember, strategic planning is key. Customize your content, use groups, and evaluate paid advertising based on your goals.
MYOB can assist you in navigating the dynamic landscape of Facebook for business by providing customized strategies and expert guidance. We provide resources and ongoing support to help you get started and continue growing. So, what are you waiting for? Jump in and start building those connections today!
Have you ever scrolled through your inbox, excited about a potential customer inquiry, only to find a generic message from an unfamiliar company asking for a follow? We’ve all been there. It’s annoying, feels impersonal, and, frankly, reflects poorly on the sender. However, for many small businesses struggling to gain visibility and engagement, unsolicited messages may appear as a tempting shortcut to boost their follower counts.
Here’s the truth: it’s a recipe for disaster. Let’s explore the reasons why spammy tactics can harm your brand image, lead to legal issues, and discover alternative strategies to cultivate an authentic social media following.
The Impact of Bots: Understanding Their Detrimental Effects
Imagine this: you own a bakery and have spent hours crafting engaging content for your bakery’s Instagram. You post a mouth-watering picture of your latest creation—a decadent chocolate cake. Suddenly, your comments section explodes with generic messages like “OMG, love this cake! Follow for more deliciousness!” When you start seeing dozens of comments like these out of the blue, they are likely from “bots,” which are automated accounts used to inflate follower counts. However, this poses a significant issue: bots lack the ability to become genuine customers and actually detract from authentic interactions. They won’t buy your products, engage with your content, or join valuable conversations.
A recent study found that up to 71% of US and UK consumers will unfollow influencers if they find out they have bought fake followers. Having fake followers can damage your credibility and authenticity as an influencer or brand.
Quality over quantity is key for building your audience. Engage with genuine followers instead of prioritizing high numbers for a loyal and valuable audience in the long term. This will create a dedicated community that will help your brand overall. Keep in mind, authenticity is crucial in marketing.
Laws of the Land: CASL and CAN-SPAM
Canada has strict regulations regarding unsolicited electronic communications, known as CASL (Canada’s Anti-Spam Legislation), which went into effect July 1, 2014. Essentially, you can’t just blast out emails or messages to anyone with a pulse. Recipients need to explicitly opt-in to receive communications from your business. Violating CASL can result in hefty fines, up to $10M per violation for companies and up to $1M per violation for individuals. It is essential for your business (and wallet!) to ensure that all electronic communications follow the guidelines established by CASL.
In addition to obtaining consent from recipients, businesses must also include a clear and easy way for individuals to unsubscribe from their communications. This ensures recipients have control over the messages they receive and helps businesses maintain compliance with CASL regulations. Regularly staying informed about the latest updates and changes to CASL is crucial to avoiding potential fines and penalties. The Canadian Radio-television and Telecommunications Commission (CRTC) website provides valuable resources and guidelines to help businesses navigate the CASL maze and ensure their electronic communications are in compliance with Canadian law.
The U.S. has similar regulations under the Federal Communications Commission’s CAN-SPAM Act. The CAN-SPAM Act requires the Federal Communications Commission (FCC) to issue rules with regard to commercial e-mail and some text messages sent to wireless devices such as cell phones—not just email in general. The Federal Trade Commission (FTC) enforces the CAN-SPAM Act.
You or your business may be subject to fines and penalties totalling up to $51,744 for each email sent if found to be in violation. Moreover, ignoring CAN-SPAM compliance undermines the reputation and image of your brand overall and leaves it unprotected.
Following these guidelines and staying informed about regulations can protect businesses from costly fines and maintain a positive image with customers. It is crucial for organizations to have a clear understanding of the rules and regulations surrounding electronic communications in order to avoid potential legal issues. Additionally, implementing strong internal policies and procedures for email marketing can help businesses ensure compliance with both CASL and CAN-SPAM regulations. Taking proactive steps to stay informed and compliant with these laws will ultimately help your business.
Instagram Guidelines: Adhering to the Platform’s Rules
Similar to CASL, Instagram has clear guidelines on acceptable messaging practices. Remember that frustrating “action blocked” message you may have received after mass-tagging irrelevant accounts? That’s Instagram flexing its muscles. Repeated offenses could lead to account suspension or even termination. So, ditch the automated follow requests and generic DMs.
Instead, focus on creating engaging and personalized content that will resonate with your followers. Building a strong and authentic presence on Instagram takes time and effort, but it will ultimately lead to better results than spamming tactics. Take the time to understand the platform’s rules and regulations, and make sure your messaging aligns with them. For instance, avoiding mass-tagging irrelevant accounts can help you adhere to Instagram’s guidelines and prevent potential penalties. By following these guidelines, you can steer clear of potential penalties and uphold a positive reputation on Instagram.
Newsletters and Eblasts: Building Trust, Not Spam Folders
Newsletters and e-blasts are valuable tools for interacting with customers and promoting your business. But here’s the key: focus on permission-based marketing, which involves obtaining consent from subscribers before sending them marketing communications. This approach ensures that your messages are well-received and compliant with privacy regulations. Encourage visitors to your website to subscribe to your mailing list by offering valuable content, like exclusive discounts or early access to new products. Make sure your sign-up form clearly outlines the types of messages subscribers will receive and how often they will receive them.
While there’s no hard-and-fast rule on when to segment your e-blasts, industry standards suggest sending them in batches based on subscriber behaviour or demographics. This way, your messages stay relevant and personalized, standing out from the clutter in their inbox.
Beyond Spam: Building a Thriving Social Media Presence
So, what steps can you take to build a genuine social media following and foster authentic connections with your audience? Here are a few suggestions:
Prioritize creating high-quality content. Share photos, videos, and stories that reflect your brand and resonate with your audience.
Be authentic. Let your brand voice shine through!
Engage with your followers. Respond to comments and messages, provide answers to inquiries, and organize interactive challenges to boost engagement.
Run targeted ads: Paid advertising can be a great way to reach a wider audience while ensuring your message gets in front of the right people.
Over to You!
Building a thriving social media presence takes time and effort. But by prioritizing authentic connections and valuable content over spam tactics, you’ll attract a loyal following of genuine customers. Keep in mind that genuine followers hold more value than a large number of inactive accounts. Avoid spammy messages and concentrate on creating social media experiences that truly resonate with your audience.
What strategies have you found most effective for increasing engagement on social media platforms?
You pour your heart and soul into your small business. You strive to deliver exceptional service and top-notch products, only to be met with a scathing one-star review on Google. It stings, doesn’t it? But don’t let it get you down; there are ways to handle negative reviews and turn the situation around.
First, take a step back and consider your options for responding. Remember, the way you handle this type of situation can make a significant difference in how your business is perceived by potential customers. Instead of focusing on the negative feedback, view it as a chance to demonstrate your professionalism and dedication to customer satisfaction.
How to Handle Negative Reviews Like a Pro
While negative reviews are inevitable, especially in the age of online transparency, how you manage them can make a world of difference. Here’s a battle plan to navigate this tricky situation:
#1. Take a deep breath. Reacting impulsively will only cloud your judgment. Next, carefully read and analyze the negative review. Is it legitimate or an internet troll? If the person is real and was a customer, try to understand the customer’s perspective and identify any valid points they may have raised. Once you have a clear understanding of the situation, respond promptly and professionally. Acknowledge the customer’s concerns, apologize for any inconvenience caused, and offer a solution or compensation if appropriate.
#2. Keep in mind that your response is not just for the unhappy customer but for potential customers who may be reading as well. Handling the situation with kindness and understanding can transform a negative experience into a positive one, highlighting your commitment to exceptional customer service.
#3. Also, before responding, check if this reviewer has left reviews before. Look for patterns in their other reviews, such as common complaints or recurring themes. Multiple negative reviews on different businesses’ profiles could mean the reviewer is a chronic complainer, rather than reflecting on your service. Consider all factors carefully before giving too much weight to their feedback.
Not All Reviews Are Created Equal
Factors such as the nature of negative reviews and their validity can influence their impact. Google employs specific guidelines to identify and flag reviews that violate its policies. Content that can be reported includes:
Off-topic: Review doesn’t pertain to an experience at or with this business
Spam: Review is from a bot, a fake account, or contains ads and promotions
Conflict of interest: Review is from someone affiliated with the business or a competitor’s business
Profanity: Review contains swear words, has sexually explicit language, or details graphic violence or other illegal activity
Bullying or Harassment: Review personally attacks a specific individual
Discrimination or hate speech: Review has harmful language about an individual or group based on identity
Personal Information: Contains personal information such as address or phone number
Source: Google Review Report
If a review fits these categories, the reporting process is straightforward:
#1. Head to your Google Business Profile.
#2. Find the specific review and click the three dots next to “Reply.”
#3. Select “Report Review.”
#4. Choose the reason for reporting and provide a brief explanation (optional).
Remember: Google may not always remove flagged reviews, so before reporting one, consider responding to the review professionally to address the concerns raised.
Addressing Valid Complaints with Care
There may occasionally be situations where the review points out a genuine issue. When the customer’s concerns seem somewhat justified, you’ll want to take a different approach. Here are a few strategies for responding to unhappy (but reasonable) reviews:
#1. Respond directly by acknowledging their frustration, apologizing for the inconvenience, and offering a resolution or compensation if appropriate.
#2. Express empathy by acknowledging the customer’s feelings, showing understanding of their perspective, and reassuring them that their feedback is valued.
#3. Offer solutions by explaining the steps taken to address any mistakes, outlining preventive measures to avoid similar issues in the future, and inviting the customer to reach out for further help.
#4. For complex issues, consider moving the conversation offline by suggesting a phone call or email to discuss the situation further and offer personalized assistance.
Why You Need a Google Business Profile
Having a Google Business Profile is crucial for increasing visibility, accessing analytics, and connecting with customers. Taking control of and managing your profile directly affects your business’s visibility in Google searches, attracting increased traffic and potential customers.
It also allows you to respond to customer reviews and engage with your audience directly. By actively managing your Google Business Profile, you can address any negative feedback promptly and demonstrate your commitment to customer satisfaction. Additionally, regularly updating your profile with accurate information and engaging content can help improve your search ranking and attract more organic traffic to your website. Taking the time to optimize your Google Business Profile can have a significant impact on your online presence and overall business success.
To optimize your Google Business Profile effectively, update your hours of operation, upload high-quality images showcasing your products or services, and respond promptly and professionally to all customer reviews. Regularly monitoring and updating your Google Business Profile ensures that potential customers have access to current information about your business.
Stay connected with your audience by regularly updating your profile with the latest promotions, upcoming events, and any changes to your business to keep customers informed, engaged, and connected with your brand. This not only helps improve your search engine visibility but also builds trust with your audience.
Remember, your online reputation can greatly influence the success of your business, so investing time and effort into optimizing your Google Business Profile is well worth it in the long run. Don’t underestimate the power of a strong online presence in today’s digital age.
Over to You
Above all, keep in mind that a negative review should not define your business. By responding professionally and using your Google Business Profile effectively, you can showcase your commitment to customer satisfaction.
So, the next time you receive an unjustified negative review, remember there’s no need to panic. Instead, ask yourself: How can I use this experience to improve my customer service and strengthen my online presence?
Imagine scrolling through a website, eager to learn more, only to be met with walls of text in a font so decorative it resembles a secret code. Frustrating, right? Now imagine that same experience with a visual impairment or while using a screen reader. Accessibility isn’t just about ticking boxes; it’s about unlocking your website for everyone, regardless of ability.
Let’s talk about people. Millions of people—15% of the global population—have some form of sensory, cognitive, or physical limitation that could affect their website experience. And guess what? They’re potential customers, loyal fans, and valuable voices waiting to be heard.
It’s time to shift our mindset and prioritize inclusivity in website design. By making our websites accessible to all, we not only expand our reach but also show that we value and respect every individual who visits our site.
Accessible websites are also more likely to rank higher in search engine results, attract a wider audience, and encourage longer user sessions, ultimately boosting the website’s performance and visibility in the competitive online landscape. Ensuring that your website is accessible to all individuals, regardless of their abilities or disabilities, is not only a legal requirement but also a moral imperative.
Understanding and complying with legal standards like The Accessible Canada Act and WCAG (Web Content Accessibility Guidelines), which are guidelines that define how to make web content more accessible to people with disabilities, not only ensure inclusivity but also protect your website from potential legal issues related to accessibility compliance.
So, how do we build bridges, not barriers? Here are some often-overlooked tips:
#1. Font Frenzy
Not all fonts are created equal. While script-like fonts might look fancy, they can be a nightmare for screen readers and people with dyslexia. Instead, opt for clear, sans-serif fonts like Arial or Helvetica. Trust me, your message will shine brighter when everyone can read it.
#2. Colour Contrast
Colour contrast is crucial for ensuring readability for all users. Make sure there is enough contrast between text and background colours to ensure that everyone can easily read the content on your site. Use tools like the WCAG colour contrast checker to ensure that your colour choices are accessible to all. Remember, inclusivity starts with design choices.
#3. Alt Text
Alt text is a simple but often overlooked aspect of web design that can make a huge difference for users with visual impairments. Make sure to include descriptive alt text for all images on your site so that screen readers can accurately describe the content to users who are unable to see the images. By taking these small steps, we can make a big impact on creating a more inclusive online experience for all users.
#4. Speaking Volumes
Text-to-speech tools are fantastic, but not everyone needs them embedded. Most modern browsers have built-in options, so focus on making your content clear, concise, and well-structured for optimal accessibility.
#5. Beyond the Basics
Accessibility isn’t just about technicalities. It’s about creating a welcoming space for everyone. Consider the following:
White space is your friend. Don’t cram too much information on a page. Give your visitors breathing room, both literally and figuratively.
Think globally and act locally. Remember to think about users who are learning English as a second language. Use clear, concise language with a Grade 4 reading level. You’ll reach a wider audience and foster inclusivity.
Professionalism matters. Even if your website is playful, keep a professional tone. This ensures clarity and avoids potentially offensive interpretation.
The Ripple Effect: How Accessibility Benefits Everyone
Remember, accessibility is an ongoing journey, not a one-time fix. You’ll want to regularly test your website with diverse users and assistive technologies. Embrace feedback, iterate, and keep learning.
Continuing to prioritize accessibility will not only help those with disabilities but also improve the overall user experience for all visitors to your website. By creating a more inclusive and user-friendly online space, you are showing a commitment to equity and diversity. Additionally, implementing accessibility features can have positive effects on your website’s search engine optimization (SEO) and overall performance.
The question is, who will you leave behind by not making your website accessible? The answer is simple: everyone. So, let’s build websites that are truly open to all, one inclusive pixel at a time.
Over to you!
Building an accessible website can seem daunting, especially for small businesses. But fear not! MYOB offers the resources you need to help you create a website that’s inclusive and welcoming to all. Are you ready to join the journey?
These days, social media isn’t just a fun pastime; it’s a vital tool that links us to friends, family, like-minded folks, and vibrant online communities. However, it is important to recognize that not everyone has equal access to these platforms. Some individuals may face barriers due to disabilities or limited technological resources.
Many have spoken up and their voices have been heard. Advocates for a more inclusive and varied digital environment have pushed for features that allow people with disabilities to access and engage with social media platforms more easily. These features and new assistive technology supports allow everyone to engage in conversations, tell their stories, and form connections with others in ways that were previously unattainable.
Understanding the Impact
In today’s digital landscape, social media has become an integral part of our daily lives, connecting us to a vast network of individuals and communities. However, for millions of people around the globe, the digital realm can be rife with obstacles. According to a report by the World Bank, an estimated 15% of the world’s population experiences some form of disability. In the context of social media, this equates to a substantial number of individuals who may encounter challenges when navigating online platforms.
These challenges include inaccessible content and user interfaces, as well as limited support for assistive technology. As a result, there is a growing need for social media platforms to prioritize accessibility and ensure that everyone, regardless of their abilities, can fully participate in the digital conversation. By prioritizing accessibility, social media platforms and content creators can create a more inclusive and diverse online community. This not only benefits individuals with disabilities but also promotes equal opportunities for participation and engagement for all users. Additionally, making social media platforms user-friendly can also lead to increased user engagement and satisfaction, as it allows a wider range of individuals to connect and share ideas.
Embracing Accessibility: A Paradigm Shift
Social media accessibility is more than just following the law; it’s about adopting a different perspective that sees accessibility as a means of achieving diversity and inclusion rather than merely a legal obligation. According to a study done by the Global Disability RightsNow campaign, 71% of people with disabilities will instantly exit a website if it is not accessible. This data emphasizes how important accessibility is to draw in and keep online viewers.
In addition, making social media platforms accessible also enhances the overall user experience for everyone. By incorporating accessibility features such as alt text for images and closed captions for videos, social media platforms can ensure that all users, can fully engage with and interact with the content.
For example, adding alt text to images allows individuals with visual impairments to understand the content of the image through screen reader technology. This inclusive approach not only fosters a more diverse and inclusive online community, but also opens new opportunities for businesses and organizations to reach a wider audience.
Adding closed captioning to stories, Reels & TikToks helps users who are hard of hearing, or who have difficulty processing auditory content. It also may help some users enjoy content while they are in a busy environment.
ACCESSIBILITY TIP: Always check the captions before posting, as this fairly new technology is not without flaws. Taking an extra couple of minutes to edit any misrepresented words may drastically improve a user’s experience.
As a business, you can also improve social media experiences by ensuring graphics with text offer clear, legible, large text. Laying text over a picture without a background to separate the two makes it difficult to read for some users.
Benefits of Social Media Accessibility for Business
By making social media platforms accessible, businesses and organizations can reach a wider audience and tap into new markets. They can also demonstrate their commitment to inclusivity and diversity, which can enhance their reputation and brand image.
Additionally, accessible social media platforms can facilitate better communication and engagement with customers or stakeholders with disabilities, leading to improved customer satisfaction and loyalty.
Over to You
The journey toward social media accessibility is not just a technologically driven endeavour; it is a testament to our capacity for empathy, understanding, and progress. As we navigate the digital sphere, let us remember that by embracing accessibility, we are building a future where everyone, regardless of ability, can partake in the vibrant tapestry of online interactions. In doing so, we foster a sense of belonging, collaboration, and empowerment that enriches the digital landscape for all.
Our CEO, Karen Try, recently had the opportunity to meet and talk with Mike Randall with Nour Insurance Services. Mike and Karen’s conversation centered around one of his products, Key Partner Insurance for business owners (sometimes referred to as “Key Man” Insurance).
Getting to Know Mike Randall
Since 2003, Mike has been a trusted advisor, offering solutions to individuals, business owners, professionals, and their families. With over 20 years of experience in insurance, investments, and business financing with reputable institutions such as London Life, Scotiabank, BMO Bank of Montreal, and IG Wealth Management, Mike brings a wealth of knowledge. Rooted in his entrepreneurial background, Mike, a former Financial Consultant and Relationship Manager, understands the entrepreneur mindset, allowing him to serve his clients effectively. His business principles revolve around building strong relationships and delivering exceptional client service, focusing on life insurance, business insurance, cashflow management, and investment tax and estate planning strategies.
Mike applies an integrated approach to create personalized and successful programs aligned with each client’s goals. He values client relationships as true partnerships, ensuring integrity and care at the core of his services. Beyond his professional life, Mike, a London, Ontario native, enjoys golf and actively volunteers as a parent head coach for the local high school varsity baseball team, where his son attends school.
We would like to note that while Mike has been gracious to share his expertise with us, he encourages you to discuss any tax related matters specific to your business with your Accountant.
Q&A with Mike Randall
Q: Mike, could you tell us about the insurance solutions you offer for businesses, families, and individuals? Mike Randall: Certainly! As an Insurance Agent at Nour Insurance Services, I provide a range of insurance solutions, including term, whole life, universal life, critical illness, and disability insurances. For businesses, we offer protection plans such as disability, key partner, and other business insurances. Additionally, we specialize in tax-efficient corporate wealth transfer plans and provide Group Benefits for employers.
Q: One interesting aspect you mentioned is key person life insurance for business owners. Can you explain how this type of insurance works? Mike Randall: Absolutely. Key person insurance is designed to financially support a business in the event of the death of a crucial individual, whether it is a company owner, partner, or indispensable employee. The policy is owned by the business, and the company pays the premiums. The benefit is triggered upon the death or disability of the key person, providing funds to ensure business continuity.
Q: When should a business consider a key person insurance policy? Mike Randall: Businesses often consider key person insurance when applying for a loan or financing, as it may be required by lenders. Other situations include businesses named after key individuals, where the loss could jeopardize the company. Partnerships may use it as part of a buy-sell agreement, and sole proprietors may utilize it to provide heirs with an insurance payout to close the business and pay off debts.
Q: Determining the coverage amount seems crucial. How can a business decide on the right coverage for key person insurance? Mike Randall: It’s essential to consider a range of factors, such as the cost of finding and recruiting a replacement, operational disruption, lost sales, and the impact on the company’s finances. While there is no magic formula, a starting point is adding the person’s salary to their direct financial contribution to the company’s bottom line, then multiplying the result by at least 5.
Q: You also mentioned the type of policy matters. Could you elaborate on whether a term or permanent life policy is more suitable? Mike Randall: Certainly. Term life insurance is more affordable but temporary, while permanent life insurance has higher premiums but provides additional benefits. Whole life insurance offers a guaranteed premium with accumulating cash value, while universal life insurance provides flexibility and potential market investments. The choice depends on factors like ownership and long-term goals.
Q: What are the tax implications of key person insurance? Mike Randall: Premiums are generally not tax-deductible, but the cash value in a permanent policy is tax-deferred. Small businesses can borrow against the policy without causing a taxable event. Depending on policy details, the death benefit may not be taxable either.
Q: Finally, how does key person insurance fit into the broader picture of protecting and strengthening a business? Mike Randall: Key person insurance is just one way life insurance can safeguard a business. Collaborating with financial professionals helps assess complex needs and tailor solutions for immediate requirements and long-term goals.
Thank you, Mike, for shedding light on key person insurance and its importance for business owners!
