Van Carlson is the Founder & CEO at SRA 831(b) Admin. He is an industry leader in enterprise risk management solutions with over 25 years of experience. Along with the responsibility of bringing SRA’s new products to market, he helps clients achieve their financial goals and aid in protecting a business’s assets through times of uncertainty.

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Guest Resources

SRA 831b Admin – Check out Van’s website. Tax deferral today to address tomorrow’s risks. Strengthen your business with an 831(b) Micro Captive Plan.

SRA Team – Reach out to Van.

3 Value Bombs

1) The idea of wearing all the hats is a fallacy . You should trust your people right away and hire the best people you can and be ready to spend money.

2) Business owners value intangible assets and traditional insurance don’t do a good job in insuring intangible assets.

3) Tool the tool box. 831b is that tool in the tool box that allows you to mitigate the risks in your business.

Sponsor

HubSpot: Making your life easier. Getting you results faster. And better connecting you to all your data, all in one place. Start making major moves with HubSpot! Visit HubSpot.com/marketers to learn more!

Show Notes

**Click the time stamp to jump directly to that point in the episode.

Today’s Audio MASTERCLASS: How an 831b plan can IGNITE your business!

[1:45] – Van shares something that he believes about becoming successful that most people disagree with.

The idea of wearing all the hats is a fallacy . You should trust your people right away and hire the best people you can and be ready to spend money.

[2:30] – Van talks about an 831b plan, a tool that every fortune 500 company uses that is now a tool for small business.

An 831b plan is a federal tax code created in 1986. Its part of the tax code that allows you to expends money out of your operating company, dump it into your 831b plan , so those dollars become untaxable.
It’s a new PPP plan that business owners are using to self-insure their risks or unfunded liability.
831b allows you to use your pre-tax dollars to build your own ready fund and be in a better position when the unforeseen happens.

[5:33] – Van talks about how can we mitigate risk with traditional insurance.

People take more first dollar risk meaning they got deductibles, limits in their policies and don’t buy enough coverage.
Traditional insurance policy makes a one size glove fits all mentality and the more niche you are in your industry or business, the more gaps you will have in that policy, the things you do uniquely that you don’t have coverage for.
Entrepreneurs wants to grow their companies and minimize taxes as much as possible.
Get back on the basics of what your business is is crucial.

[9:05] – Van talks about the specific risks that businesses are facing that this plan can be used for.

Clients buying general liability policies because they think it covers all their slips and falls. A lot of times you don’t know how good or bad your policy is until you need it.
They have a dispute resolution that they create for their clients which means that if they get served with lawsuit, this will pay for their legal bills and any damage that is found against the client and that is a back up to the general liability.
They are educators who make it easy for business owners to participate in this plan by acting as 831b Administrators in SRA.
Money after tax is operating cash flow and pre-tax dollars is dollars you spent in the previous years and there is a risk that it will be taxable.
The operating cash flow is key to keeping the business stay alive. Being aware of these niches will make you a better business owner.

[12:57] – A timeout to thank our sponsor!

HubSpot: Making your life easier. Getting you results faster. And better connecting you to all your data, all in one place. Start making major moves with HubSpot! Visit HubSpot.com/marketers to learn more!

[15:58] – Van talks about what is a business succession plan shares his plan.

What he has seen now is high merger acquisitions. When you buy out a business , warranties will devalue your business , but when you utilize the 831b, such are already funded and so they don’t devalue their business.
Business owners value intangible assets and traditional insurance don’t do a good job in insuring intangible assets.
In the event of merger acquisitions, utilizing an 831b plan will give you dollars to weather the storm and help you mitigate the risks for a new buyer and it will also benefit the seller.

[20:27] – Van talks about his origin story into this industry.

He is an entrepreneur and a risk taker. He owns 4 operating companies and never thought to have this business. He has known all the risks to get where he is and he is no longer afraid of it.
The reality is, in his opinion, we are not making more risk takers and if he can bring tools like this to mitigate risks, it will embolden other entrepreneurs to take more risk and drive the economy.
He likes to help entrepreneurs who are cautious employers and like to take care of their people.

[22:52] – Van talks about the future of 831b.

Its going to become a normal business practice like the 401k plan.
It will give you a competitive edge in your industry the faster you adapt this program.
Right now, traditional insurance are driving the bus with so much exclusions, but in the future, it 831b will be a normal practice.
Entrepreneurs doesn’t like to talk about risk and insurance is a necessary kind of evil but he honestly think that the risk they need to take , they owe it to their employees.
Utilizing all the tools that are available and looking at risk policies is critical to your business because you don’t want to find it out in the wrong time if you have the right insurance or not.

[25:12] – Van gives his takeaway.

Tool the tool box. 831b is that tool in the tool box that allows you to mitigate the risks in your business.

[26:00] – Call to action.

SRA 831b Admin – Check out Van’s website. Tax deferral today to address tomorrow’s risks. Strengthen your business with an 831(b) Micro Captive Plan.
SRA TEAM – Reach out to Van.

[26:02] – Thank you to our Sponsor!

HubSpot: Making your life easier. Getting you results faster. And better connecting you to all your data, all in one place. Start making major moves with HubSpot! Visit HubSpot.com/marketers to learn more!

Killer Resources!

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