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STRATEGIC PLANNING: Being Strategic Means Being Informed

Right now the U.S. Senate is considering the House amendment to H.R.4213.  This bill is an attempt to close some of the loopholes created by ARRA, the stimulus package.  It includes many provisions, including changes to physician Medicare reimbursement, extension of unemployment taxes, COBRA, Satellite Television, and a potential tax increase of 15.3% for small “S Corp” businesses. You need to stay on top of legislative issues so you can plan how your organization will handle any effects of new laws.  I realize legislation is long and hard to read–H.R.4213 is 412 pages long–so I’m not suggesting you read them in their entirety.  However, I am suggesting you read summaries (http://www.govtrack.us/), listen to the news, or contact your professional associations.  That’s the only way to be knowledgeable about legislative changes that could impact your business or life.

If you are a physician, you need to understand that even if the amendment to H.R.4213 provides a temporary reprieve from the 21.3% cut in Medicare reimbursements now, in 2012 we’ll potentially be facing a 33% cut due to past legislation.

If you are unemployed, you should know unemployment benefits are being considered for extension, and the government may pay up to 65% of your COBRA premiums while you are unemployed.

If you are a Satellite Television provider, it is important to note some new filing fees are being considered.  There are also proposed changes to provisions regarding your written materials, including how the words ‘analog’ and ‘digital’ may be used.

And the last thing I’ll mention is the amendment to H.R. 4213, as currently worded, will enact a 15.3% tax increase for “S Corp” businesses.  This will impact dividend disbursements and tax your business’ retained earnings/capital. If you are using your retained earnings in lieu of other financing, you need to know the current legislation and how you might minimize the pain associated with these changes.

Sometimes strategic planning isn’t about long term projects—sometimes it’s about identifying possible detours in your daily operating plan.  Life happens, whether it comes in the form of unexpected changes to personal circumstances, economic upheaval, or new laws.  If you don’t keep informed of potential problems, you can’t prepare for them.  Many organizations are negatively impacted, not so much by the circumstance itself, as by their lack of planning and consideration of ‘what ifs’. Being strategic isn’t always about a long term vision.  Sometimes it is simply about identifying Plan B.  You can’t stop life from happening, but you can prepare for the speed bumps, construction zones, and detours along the way.

When you stay informed of local, state, and federal issues impacting your business, not only are you prepared, but you can be a hero by educating others who will be impacted.  Send a note to a colleague that needs the information.  Send a note of encouragement to an unemployed friend based on the most recent news.  They will appreciate it and remember you when opportunities or issues affecting you arise in the future.

If you are a business owner, now that you know of these potential changes, you should speak to your legal counsel or CPA regarding the best protection for your dividend disbursements, retained earnings, or sources of capital.

If you have an opinion, share it with the right people instead of just complaining about it.  Whether you agree or disagree with pending legislation, your voice needs to be heard by those with the power to make changes.

No one can care about your business more than you do.  It is important to stay informed, be prepared, and respond strategically so you can be intentional and deliberate about your business and personal interests.  Don’t be a victim of circumstance because you were not aware of impending legislative changes.

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• Business Plan Formatting (dohertyassoc.com)
• 7 Important Areas to Consider When Writing a Great Business Plan (dohertyassoc.com)
• Business Plans Only Finds Success if Implemented (dohertyassoc.com)

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