Standings Assessment
Michael and Josh are the dynamic engineering duo behind a woodworking manufacturing company in the Okanagan, specializing in flooring and stair manufacturing. Michael, who grew up on a farm, has a hands-on background in building and engineering. He and Josh met at UBC in the Bachelor of Applied Science program, where they won a capstone project together. Josh moved to Kelowna to attend UBC, where he specialized in electrical engineering.
Michael’s family operated the flooring woodworking company until 2021, where they created stair nosings, full-wrap stairs, in-floor vents, and between-room strips to match flooring throughout a space. Their clients are primarily flooring stores across Western Canada, for whom they create custom pieces based on the specific needs of the client.
Before working with FocalPoint Financial, both Michael and Josh had tried different financial planning services with unsatisfactory results. Michael dealt with an unimpressive accountant and a hands-off wealth management firm. Josh managed his own investments but considered himself financially illiterate.
In 2021, Michael and Josh started the steps to take on Michael’s family’s business. Their main challenge was navigating the financial complexities of business acquisition, leading Josh to search for life insurance, which ultimately led them to FocalPoint Financial Group through the Engineer Canada—Services for Engineers program. After a 45-minute conversation about insurance and other financial planning questions with Michelle, Josh thought, “I think I may have stumbled across something great.”
The Strategy
Risk Management
Risk management was a crucial component of the financial strategy for Michael and Josh. Initially, Michelle at FocalPoint Financial spoke to Josh about his life insurance inquiries. This conversation expanded into a comprehensive discussion about risk management for both personal and business finances. FocalPoint Financial recommended a robust life insurance plan tailored to Josh’s needs, explaining how it could be used as a financial vehicle to protect their assets and provide financial security.
Wealth Accumulation
FocalPoint Financial devised a customized strategy for Michael and Josh for managing their personal investments and ensuring their portfolios were diversified and optimized for growth. Bryan at FocalPoint managed the transfer of personal investments and continued to oversee them, providing a friendlier and more engaging service than previous firms. This hands-on approach allowed Michael and Josh to focus on growing their business while feeling confident about their financial future.
Tax Planning
The FocalPoint team’s comprehensive planning included detailed tax strategies to optimize the financial outcomes for Michael and Josh. By collaborating with a referred accountant firm, Moodys, they ensured that all tax obligations were efficiently managed. This strategic approach minimized their tax burden and provided clear guidance on how to structure their business and personal finances effectively.
Transitions
The transition period for Michael and Josh was a primary focus for FocalPoint Financial. Having recently graduated from UBC, they were stepping into the role of business owners with the acquisition of Michael’s parents’ company. This significant life change was managed with the help of FocalPoint’s extensive network and resources.
FocalPoint facilitated a partnership with a business evaluator, which was crucial for understanding the value and potential of their newly acquired company. This partnership provided a clear picture of the business’s financial standing and informed their strategic decisions moving forward.
Achieved Outcome
Through their collaboration with FocalPoint Financial, Michael and Josh achieved several key milestones. The business valuation process was managed effectively, relieving stress for Michael and Josh, as well as for Michael’s parents, who were ready to take their long-awaited retirement. After the successful business acquisition, Michael and Josh were able to expand its offerings from hardwood-only products to include vinyl and laminate as well. Additionally, FocalPoint connected Michael and Josh with other business owners, creating a supportive network that offered advice and shared experiences.
Both Michael and Josh, as well as the business, now have sufficient coverage for any unfortunate events that may arise. Michael and Josh’s personal investments were transferred in and are being managed successfully, leading to substantial growth.
“You don’t know what you don’t know until you talk to the right people. Focal is in your corner to do the right thing for you. The FocalPoint team wouldn’t lead you astray; they are highly knowledgeable about corporate and personal planning and the team members never stop learning to better assist their clients.”
Michael and Josh
Please note:
The name and certain characteristics of the client mentioned in this case study have been changed to protect their privacy and confidentiality. This case study is based on a third-party interview with the client, providing an authentic firsthand account of their experience.
Any strategies or outcomes discussed should not be construed as personalized advice, as they may not be suitable for your individual objectives, financial, or legal circumstances. FocalPoint Financial advisors are not lawyers or accountants, and any specialized advice provided to this client was obtained from trusted professionals in those fields.
