Cindy Hartman's Page

Our son thinks of us even when he's on vacation

Our youngest son is vacationing in Alabama with his family and enjoying the beach, pool and 100+ degree weather. Here's a voice mail he left on my phone a couple days ago ... "Hey mom and dad, Jill and I are watching the news and there's an Allstate Agent, Scott Soulant, on Fox 10, telling people how they need an inventory." (Yes, Brian is that detailed when he tells stories. He even spelled out Soulant in case we wanted to look him up.)

He went on to say, "This agent said you need to have pictures and a written list of the items in your house in case of a disaster; he even said you should write down the serial numbers and model numbers. It sounds like he's talking about you guys. Just wanted you to know that even insurance agents are telling people they need an inventory. Sorry I missed you, see ya in a few days. Oh! One more thing...thanks for doing our inventory of our house, and for bugging me to get the updates to you. We'll do that when we get back."

Oh, the friends we meet

When we provide our home inventory service, we quite often feel that we have made new a new friend. But last week we developed a special fondness for Wilson.

When we arrived, he welcomed us with such enthusiasm you'd think we were long lost friends! We took time for our normal pleasantries and he seemed to really enjoy that. When it was time to get to work, he followed us throughout the house, watching everything we did. We don't mind that, and always invited our customers to be with us the entire time. Wilson was very quiet and never got in our way. Most of the time he just sat and watched as we moved about documenting the personal property, logging serial numbers and model numbers, counting the clothes, the CDs, the DVDs, etc.

It can be quite boring watching us work, and a few times we saw him taking a cat nap. But, once we headed to another room, along he came. A couple hours later, when it was time for us to leave, he walked us out the front door and even onto the sidewalk! I was beginning to think he was just going to come home with us. So, we stopped walking, said goodbye once more, and started towards the car. Again, he started walking with us!

At that point, though, his owner called him back to the house. We gave Wilson one more pat on the head, knowing this time, for sure, we have a new-found friend!

If you haven't done it by now...

Our guest today is Bill Suffel, owner of Bill's Alignment and Automotive Service. Since 1989, he has been known for his excellent customer service. An extremely busy man, Bill also is the owner of a second business and is an elected Speedway, Indiana, Town Councilor.

Without the help of the inventory records Hartman Inventory provided for me, the insurance settlement would not have been close to what I received.

I was burglarized and really struggled remembering what I had. I spent months walking through the house, trying to remember what - if anything - was missing from each room. I'm still remembering items that weren't part of the claim.

I knew the only way I'd ever get a reasonable insurance settlement if I had another loss was to inventory all my items. Since my time is spent running two businesses, I knew I would not get around to doing the inventories for both companies and my home any time soon. So that’s why I called the Hartmans. Had I waited until I had the time to do it myself, it would have been a huge mistake!

A few months after my inventory service, I was burglarized again. This time, it was much easier to remember what was missing. The task of filing the claim took just a few hours instead of the months it took me the first time. My time is valuable, and so are the things I own. The inventory documents saved me time, and helped me recover financially!

I can tell you, if you haven't done it yourself by now, you probably won't. Call them before you are the one spending months trying to receive an acceptable insurance claim.

Bill's Alignment and Automotive Service - 2950 Formula Alley Way 46222 - 317.923.2757

Business exit plan: Paul Simon had the right idea

T. Ray Phillips graduated in 1991 from De Pauw University with a Bachelors of Arts Degree and a major in Economics. He spent 4 1/2 years in the field of health insurance sales after graduation and consistently finished among the top 25 producers nationwide for Reserve National Insurance, Co.

Mr. Phillips shifted his practice to investment and insurance portfolio analysis and design associated with the Indianapolis Financial Group in 1996. In December 1998, the company that is now The Family Business Legacy Co, LLC was created to work primarily with the privately held and family-owned business. In 2002, T. Ray earned his Chartered Financial Consultant (ChFC) designation, and in 2004 became the first person in Indiana and one of less than 500 individuals nationwide to earn the Certified Family Business Specialist (CFBS) designation. Concurrent with the CFBS, he also earned his Graduate Certificate in Business Succession Planning. All of these designations are from the American College in Bryn Mawr, PA. In 2007, he earned the Accredited Estate Planner designation (AEP) and is currently finishing his Board Certification in Estate Planning (BCE) designation.

According to Paul Simon, there are 50 ways to leave a lover. Not being as creative as Mr. Simon, we’ve only come up with eight ways for owners to leave their companies.

• Transfer the company to a family member;
• Sell the business to one or more key employees;
• Sell to key employees using an Employee Stock Ownership Plan (ESOP);
• Sell the business to one or more co-owners;
• Sell to an outside third party;
• Engage in an Initial Public Offering;
• Retain ownership but become a passive owner; and
• Liquidate.

Given the right circumstances, one of these paths may be the appropriate for you. The process of determining exactly which path is best may present an obstacle that many owners may choose to avoid. If, however, you wish to "leave your business in style," you should work through a three-step process of selecting your path. During this process you will synthesize or harmonize your exit objectives with the characteristics and capabilities of your company as well as with the external realities of the marketplace. Establishing thoughtful objectives is the first step of your Exit Plan. Doing so well in advance of your departure gives you and your advisors the time necessary to help make your goal a reality. In essence, you need to “Take Inventory” of where you are and where you want to go.

Choosing a Path - Step One. First, you, as an owner and with the help of your advisors, identify your most important Exit objectives. These objectives are both financial - "How much money will I need from the transfer of the business to assure my and my family’s financial security?"- and non-financial -"I want the company to stay in the family," or "I want to remain involved." Internal and external considerations impact an owner’s choice of exit path. For example, the owner who wishes to transfer the business for cash, but is unwilling to throw his company's and his employees' fates on an unknown third party, may decide that an ESOP or carefully-designed sale to his key employee group is the best exit route. External considerations that may impact the choice of exit path are: business, market or financial conditions. For example, the option of selling your business for cash to an outside buyer may be eliminated because of the anemic state of the M&A market.

Step Two. As you develop consistent objectives and motives, you then must value your company and determine its marketability. This analysis usually provides further direction and can eliminate potential exit paths. Once again, a detailed “inventory” of your business that creates it’s value is critical. For example, if the value of a company is high and its marketability is low (perhaps because of the depressed state of the M&A market), an owner may decide that a sale of the business to an outside party is impractical. Instead, selling to an "insider" (co-owner, family member or employee) may be a better option.

Step Three. The final step in choosing a path is to evaluate the tax consequences of various exit paths. This evaluation will include factors such as form of business entity as well as any changes that must be made. Again, if a sale to a third party would likely mean a sale of assets and the company is a "C" corporation, the adverse tax consequences indicate a sale via an ESOP might be an appropriate choice. Using this three-step process, owners can help narrow the list of exit routes. If more than one route remains, owners and their advisors must conduct open and frank discussions based on realistic possibilities to determine which path to take and when. Make sure your Team of Advisors knows the pros and cons of each exit path.

As you’ve noticed, I’ve referenced “inventory” throughout the article. That parallel reference is intentional as it relates to what Hartman Inventory should be doing for your business and home. Continuity planning is key in times of surprise events. Entrepreneurs have very little time to spare. Without an updated inventory of what you or your business owns, when an insurance claim hits (storms, floods, fires, theft, etc), a lack of a valid inventory can cost you thousands of dollars of your money in addition to lost time trying to “prove” what you owned to insurance adjusters. Keep time on your side!

DISCLAIMER: The information contained in this article is general in nature and is not legal advice. For information regarding your particular situation, contact an attorney or tax advisor. This newsletter is believed to provide accurate and authoritative information related to the subject matter. The accuracy of the information is not guaranteed and is provided with the understanding that none of the providers of this newsletter, including Business Enterprise Institute, Inc., is rendering legal, accounting or tax advice. In specific cases, clients should consult their legal, accounting or tax advisors.

The example provided is hypothetical and for illustrative purposes only. It includes fictitious names and does not represent any particular person or entity.
Financial Planning, Securities, & Investment Advisory services offered through MML Investors Services, Inc. 900 E. 96th St., Ste 300, Indianapolis, IN 46240. Phone (317) 469-9999. Please do not leave trade instructions over e-mail, as they cannot be processed.
Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS under circular 230, we inform you that any U.S. Federal tax advice contained in this communication, unless otherwise specifically stated, was not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing, or recommending to another party any matters addressed herein.
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Unfortunately, most take our freedom for granted

Unfortunately, most of us (I must admit I am one) often take our great fortune of living in the United States for granted. It takes Memorial Day, Veteran's Day, Flag Day and the 4th of July to remind us of the price of this freedom.

This rendition of God Bless America, and the video with it, brought tears to my eyes - tears of joy, tears of pride and tears of sadness for those who gave their life so we can celebrate this day.

Please take a moment to view this; I hope it gets the fire burning inside your heart like it did for me. I send out a big THANK YOU to those who have served and are serving us now.

4th of July trivia

This weekend we will be celebrating the 4th of July. Picnics, fireworks, parades, barbecues, mini-vacations. It's a time to relax, enjoy family and friends, rejuvenate, and also remember exactly how important this day is.

Since we make lists of things for a living, of course we've created a list of interesting facts related to Independence Day (Census Bureau):

• 2.5 million: Estimated number of people living in this newly independent nation in 1776
• 304 million: Nation's population on July 4th, 2009
• 31: places with “liberty” in their name
• 31: places named "eagle"
• 12: places that have "independence" in their name
• 9: places adopted the name "freedom"
• 5: places in the country named America
• 1: place named "patriot" (Patriot, Indiana w/a population of 192

We are fortunate to live in this country that is not torn with war, that we can travel from state to state without barriers, that we can speak out against our government without being arrested (or worse). Our forefathers fought for this freedom, and gave us this independence, generations ago.

Let us all remember, while celebrating, that many people have given their life for our freedom in all the years since. May we all celebrate it, showing the respect and appreciation they each deserve!

"... and crown thy good with brotherhood; from sea to shining sea!"

Happy Independence Day!

Look at all that stuff!

I was reading the contents of an estate sale recently. Some of the items were 19th Century Straight Razor Form Trade Sign, Tiger Maple Candle Box, Sword, Early Apothecary, Rare Treenware, Cast Iron Oil Chandeliers, Queen Anne Dining Chairs, Huge Mahogany Pedestal Table ...

I'm guessing you don't have many - if any - of these items in your home. But that doesn't make what you DO have less valuable to you. Think of having a disaster and not having a list of what you own. Would you be able to say how many clothes you have? What about listing your electronics, collectibles, appliances - even just your every day items? If you won't (and I'm positive you can't), then you'll not file a complete insurance claim.

Bottom line, you won't recover financially the way you should. Then, especially in these economic times, where will you get the money to replace what your insurance settlement didn't? Credit cards? Pull money from a retirement account? Kids' college fund? Ouch, ouch, and ouch again.

The holiday weekend is coming up. You'll probably have some down time. Create your inventory! Better yet, call us to provide the inventory service for you. Then, while you're partying, celebrating the 4th of July, or just relaxing in the back yard, we'll do your inventory for you. How's that for celebrating?

The mortgage is paid off!

If you're one of the lucky ones who has paid off your mortgage, congratulations!

We have been asked if people still need homeowners insurance once they've paid their house off. The reason for the question is that there is no longer a mortgage company "demanding" you have insurance.

My answer is an emphatic "Yes, you still need insurance." When your car is paid off, you still need insurance. The same goes for your house.

The reason you should continue to insure your home is that you need to protect your investment. I'm confident that a tornado, hurricane, flood or fire will not only choose houses and businesses that have insurance!

The other part of the your homeowners policy is insuring the contents inside your home. You'll want that covered, too. And as you're deciding to keep your insurance, think about how much you are insuring. Don't have any idea what that dollar amount should be? An inventory will help you know so you aren't over- or under-insured. An inventory will also help you remember and prove ownership of your belongings if you do have that disaster.

As one of our customers says, "Without and inventory, your insurance premium is just another bill." Think about that for a moment. Makes sense, doesn't it?

With a contents inventory, you will be able to remember what you own(ed), prove the high end items, have serial numbers available, and ultimately maximize your claim, and recoup what you've lost. And you'll do it in a much shorter time than if you didn't have that information readily available.

Numbers, numbers, numbers

We were in the middle of a home inventory at an insurance agent's house, and she was obviously listening to Mike reading off model and serial numbers to me as we documented her TV, DVD player, VHS player, CD player, digital camera and video camera. She said she never realized how many things had numbers on them.

I guess she wasn't around when we listed the numbers on the saws, drills, lawn mower, lawn trimmer, ladders, guns, kitchen appliances ... OK, you get the picture. And now, she does, too. It would be impossible to know all of this.

And that, of course, is why we do what we do.

Our turnkey package now includes professional coaching

We have upgraded the Hartman Inventory Systems! Already a premier turnkey package, we have added a program that will help each Group Member achieve success even faster with their inventory service.

Often, no matter how confident someone is, there is a fear of not being successful. We want our Group Members to achieve their goals with the business and in their personal lives. So we've added a life/business coaching program.

J. Sewell Perkins, founder of Success Coaches Institute, has developed a course that is perfect for small business owners. In addition to the course, a one year membership to International Mastermind Group is included. Her personal mission statement is to make each life she touches better in some way for her having touched it. We're honored to be working with her.

We have the industry and business know-how, but J. S. will bring that other element – coaching to achieve belief in oneself, knowing what holds you back, and learning how to tackle those issues. We are extremely excited to be able to include this program, and to do so without increasing the cost of the Systems package.

In addition to the coaching program, some key elements the Hartman Inventory Systems turnkey package includes are:

• hands-on training
• equipment
• manual w/downloadable templates
• one-on-one mentoring and support
• a complete marketing package (website, newsletter creation and distribution)
• financing.

The personal property inventory service industry is growing. Our package allows for a quick start and continued growth. Ready to start your own business?