(1) We have all heard that you should diversify investments. Your business is probably the biggest investment. You should never invest in other businesses in your industry. Your private investments should be in businesses that would thrive while your industry is faltering. (2) Failing to fund your retirement plan. You should be putting away a maximum of the pre-dollars into a retirement account every year. Remember, everything that goes into a retirement plan has your employment taxes saved. Your wages have employment taxes of over 15-1/2%. What goes into the retirement plan is tax free, plus it is a deduction for your business. (3) Your business can be a C corporation, an S corporation or an LLC. Only a C corporation can deduct the premiums for long-term care insurance. (4) You were generally the sole operator of your business. On your illness or death, what will happen to the company? You need to broaden your company's structure and get a board of directors that could be of assistance to you and your heirs in the event of an unfortunate disaster. Setting up your business to continue without you makes it more valuable to potential buyers. (5) Having a succession plan is fine, but maybe your children don't want to be in the business. If they want to be in the business, they should start working alongside you soon and you should transfer ownership to them quickly. They have to feel like they are wanted and they are part of the business so that they want to stay. (6) You can't leave a committee in charge of your business by giving everything to your children equally. This would be a disaster as any business needs one party to make a decision. (7) Be sure you have adequate liability insurance and life insurance on your life.