Petrogram - Fall 2008 - (Page 24)
Out & About THE INDUSTRY Feeling Trapped in a Petro Storm Mark Radosevich and John Dixon three types of plans working together to insure success. • The Strategic Business Plan moves operations forward, leveraging core competencies to insure optimal performance and proﬁtability. • The Succession & Estate Plan insures that your business passes from one generation to the next or proﬁtably into the hands of new ownership. • The Financial Plan, the third of the planning triumvirate, helps insure that hard-earned business income and equity does not rain into the tax-coﬀers. Traditional estate and succession planning can be unpleasant because most strategies involve sacriﬁcing operational control over your business, assets or inhe wind is howling, the waves are crashing and the forecast predicts no reprieve in sight, while the industry huddles in a leaking row boat riding out the petro storm of the century. Where positive growth and financing issues were once discussed, now all we hear about are futures-driven crude price increases, rack volatility, credit-card gouging and increased supplier security requirements that are severely constraining marketer cash flow and profitability. With retail prices exceeding $4 a gallon, it’s almost inconceivable that any business can successfully operate on a measly one-and-a-half percent profit margin. But this is what the industry faces daily, and we find it amazing that people still call asking how they can get in the business. It would be sort of funny if it wasn’t so sad and frightening. This petro storm has had a paralyzing aﬀect on many marketers, rendering 24 | Petrogram T To weather the storm, marketers must proactively organize their businesses and chart a course that addresses their needs and objectives, be it growing or going. them incapable of long-term vision and action. Many have had enough and are compelled to hit the exits but are frozen, not quite sure how to eﬀectively proceed or what the tax consequences may be from a sale. In one instance, after Petro-Properties & Finance assisted a marketer with the successful sale of his retail chain, he faced an exorbitant tax obligation at closing because he lacked proper ﬁnancial planning. To weather the storm, marketers must proactively organize their businesses and chart a course that addresses their needs and objectives, be it growing or going. This necessitates the development of come today in order to receive favorable tax treatment later. Establishment of effective plans removes all guess work, enabling marketers to exit strategically and proﬁtably. Many “weather-proof” strategies exist, which can enable you to plan now for both contingencies, without sacriﬁcing operational control or income that you need for your lifestyle. Proper ﬁnancial planning anticipates growth, potential acquisitions, ownership transfers or a sale of your business for that “home run” price. Good plans will identify structural and cash-ﬂow changes that can be made to wring the most advantage out of the current tax www.fpma.org | Fall 2008
Table of Contents for the Digital Edition of Petrogram - Fall 2008
Petrogram - Fall 2008
Welcome, New Board Members
Getting the Message Out There
Spotlight on FPMA's 2008 Convention & Trade Show!
Out & About the Industry
Alcohol Beverages & Tobacco Regulation: Questions and Answers
Hedging 101: Part II
What Owners Should Know
The Price-Gouging Statute
Conference of Committees Registration Form
Index of Advertisers
Petrogram - Fall 2008
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