April 2023 Newsletter

This is a special newsletter, as we bid farewell to our firm’s namesake and mark the close of busy season!

What a Ride … Thank You! — A Message from Tom Sponsel

I will be retiring from the firm effective May 31, 2023.

On September 2, 2009, we embarked on a journey of building a successful business enterprise that would be based on trust and mutually beneficial relationships with an energized entrepreneurial team that had a vision — which we believed included a better way of conducting business as a CPA firm.

Over the subsequent three to four weeks in September of 2009, we assembled a team of about 22 professionals who shared that vision and had every confidence that we could deliver on that vision together. After 13+ years, nine of the original team members remain engaged, and our total team now numbers 40.

When we started that journey, I pledged to my partners at the time that I would work until my 70^th birthday, which will occur on May 15, 2023.

We have been working on this transition for the past six years, and the leadership of the firm has been transitioned to the Executive Committee leadership team of my partners Lisa Purichia and Nick Hopkins.

We have grown from a startup in one of the most difficult and precarious economic conditions in recent times to a respected local CPA firm delivering a full range of CPA and consulting services — and doing it with the utmost conscientious professionalism. That will continue.

Annually, we receive many accolades and “thank yous” from our clients and friends. For the past five years, we have been awarded as one of the BEST PLACES TO WORK IN INDIANA (only 125 Indiana companies are awarded each year) in addition to our annual inclusion in the IBJ list of the 25 largest CPA firms in Indianapolis. These are not participation awards — we worked hard on these achievements.

Our secret … is caring about our people, team members, clients and friends!

I would like to thank all of those who helped in so many ways back at our inception and for the past 13 years. I personally was overwhelmed by the magnitude of support we have received, even from our competitors! Many, many friends were instrumental in our successful start and current operations.

I want to recognize my BIGGEST fan, my wife of 49 years — Barbara, whose love and support through these past almost 50 years allowed me to pursue my dream, as she oversaw the home front and caring for our children as they were growing up. My now adult children, TJ and Natalie, have also been supportive through the years. I now have MY MOST FUN with my five grandchildren: Maddi, Ali, Paige, Brock and Blakely!

I have been very blessed and very thankful for the values my parents Paul and Dorothy Sponsel instilled in me and my six siblings. Good roots do matter!

I am very appreciative of all the relationships I have built through the years. As I have told the young people entering our profession, we start out serving our clients and then we make them our friends and enjoy a much deeper and personal relationship — in many cases, we become a part of their family.

Please do not consider this a “goodbye” but rather a greeting to a new chapter in my and Barb’s life. I will still be available to help any and all clients, friends, co-workers and partners as I can. We love our trips to Florida, but Indy is HOME. Plus, it is where our grandkids are — only grandparents can fully appreciate that comment.

I have a few pending client projects to finish and a few remaining clients to complete the transition to another of the firm’s partners.

Ethical Behavior … Personally and in Business … Matters!

By Tom Sponsel, CPA/ABV, CFF
Partner
[email protected]

As a proud CPA for over 45 years, I was embarrassed to read recently that Ernst & Young, one of the top four accounting firms in the country, has been intentionally enabling its employees to cheat on ethics exams for years. They were required to pass these exams to acquire or maintain professional licenses, thus losing all credibility by cutting corners. It is like an oxymoron — cheating on an ETHICS exam? Ethical behavior should be a “non-negotiable” in your enterprise — it IS that simple.

The Indiana Professional Licensing Agency also requires a similar ethics exams and continuing professional education (CPE) in ethics every three years — the required CPE cycle in Indiana. At Sponsel CPA Group, we take ethical behavior very seriously and ingrain it in our regular operating procedures. Any business that’s not run ethically is hardly a valid business, and it will not achieve its desired level of success in the long run. Business isn’t just about making a buck any way you can. It’s about building relationships, loyalty and trust. If you lose those critical elements, you’ll soon have nothing left — professionally or personally.

Business ethics are really no different than the ethics you employ in your personal life. Always ask yourself, “Am I doing the right thing?” You should do the right thing even if it costs you money. For example, if you give refund to a dissatisfied customer, you may find yourself worrying about your short-term financial results. Think about the long-term benefits instead. You’re establishing your business as one with integrity, one that cares about its customers and stands behind its products and services. Those are the businesses that can be trusted and will be around for the long haul because their customers know they are in reliable hands.

Your employee group will also rally around this honorable habit of doing the right thing. They will be proud to work with a company that values the customer experience and is profoundly focused on the relationship with its customers. In many cases, these same companies have an above average relationship with their team of employees, as people like to work in environments that make them proud. They will be proud that you are a “man or woman of your word” — and can be unequivocally trusted.

If you operate with Best Practices, employees and customers will respect you and pledge their loyalty. Think of the regulars at mom-and-pop coffee shops. They would probably prefer the convenience of a drive-thru Starbucks, but they keep going to the family-owned store because it has a sense of history and character. They like good, honest people pouring coffee from a pot they brewed themselves. That personal touch.

Our competitive culture unfortunately leads to short-cutting customer service and sometimes corruption in the business world. But there are fortunately consequences for those misdeeds. (For the aforementioned ethics exam offense, Ernst & Young had to pay a $100 million fine.) We can’t let wrongdoing slide. Business owners especially need to step up and set an example of doing the right thing.

If you’re not doing what’s right for your customers, employees and other stakeholders … what are you doing exactly? Stay focused on what’s right, and your business will keep booming.

If we can assist you further with achieving success in your business or personal affairs, please contact Tom Sponsel at (317) 608-6691 or email [email protected].

May 2022 Newsletter

In honor of the Indy 500, this month’s newsletter has a racing theme! Learn how you can go the extra mile and cruise toward success!

Race into the Future … with a VISION!

By Tom Sponsel, CPA/ABV, CFF
Managing Partner
[email protected]

Most successful leaders not only have an idea of what they want from their day-to-day operations, but they also have a vision for what the company will become three-to-five years down the road.

A leader with a crystal-clear, long-term vision can win over the toughest crowds.

Take Roger Penske, for example. When he bought the Indianapolis Motor Speedway (IMS) in November 2019, he received widespread support, even from rival team owners. That’s because he talked about breaking the glass of longtime barriers and taking risks that will pay off in the long run. He also gained support by giving back to the community and hosting mass vaccination clinics at the Speedway.

Then in early 2020, when the Indy 500 race was postponed and ultimately held without paying fans, he did not panic. But when asked about the challenges of a pandemic, he understated in a media article: “Any time you buy a business, there are always unanticipated challenges in the first couple of years!” He did not panic in the face of a pandemic not experienced in over 100 years. He has an identified vision as the “new steward” of IMS as a racing institution.

Think about the barriers you face and the risks you’re compelled to take. Whether you’re a CEO, department head or manager, you may not know all the steps needed to achieve your vision. But can you assemble a team that will help you build that path toward your goals?

Think about your younger employees. What millennial and Gen Z team members consider a “success” isn’t what you’ve historically considered a success. For example, while you focus on revenue and profitability (yes, very important!), younger generations measure the success of a business based on its community outreach and impact. To which local charities do you donate and/or allow employees to perform community service projects for? How do you publicly encourage diversity (in all its forms) in the workplace? The acronyms of DEI and ESG are important to them.

If you are flexible and listen to your team members, they will let you know what aspects of their employment is important to them.

Confidence is also key! Your calm, confident demeanor can carry the team over hurdles that would otherwise kill a company. That’s the power of positive thinking. Your LEADERSHIP and VISION are critical components.

The business world is rapidly ever-changing — not just because of economic challenges and generational differences. Successful businesses have always been about innovation and adaptation. That’s why you should take time away from your day-to-day operations to crystallize the long-term vision for your enterprise or operating group within the larger business. You will need to disclose that vision and show your colleagues your plan to achieve that vision within your designated time frame.

If we can assist you further with achieving success in your business or personal affairs, please contact Tom Sponsel at (317) 608-6691 or email [email protected].

Sponsel CPA Group Among Best Places to Work

For the fourth year in a row, Sponsel CPA Group has been recognized by the Indiana Chamber of Commerce as one of the “Best Places to Work in Indiana.” The firm is one of the 125 winning Indiana companies and one of the 53 companies within the Small Company Group (less than 75 employees). Sponsel continues to stand tall, even as 40 new businesses made the list this year. The actual rankings within the respective groups will be announced on May 12.

The 125 winning companies represent more than 35 cities and towns across Indiana, ranging in size from 15 to more than 1,000 employees. The top companies were determined through employer reports and comprehensive employee surveys. The Workforce Research Group facilitated the selection process.

Tom Sponsel, a member of the firm’s Executive Committee, offered this reflection: “We’re so proud we’ve been able to maintain our streak of receiving this honor for four consecutive years, especially considering the challenges of the last two years. It’s encouraging to us as a TEAM as well as to our clients, vendors and loved ones that our perseverance through those obstacles has paid off. We thank the Indiana Chamber of Commerce for this wonderful recognition.

We would also like to CONGRATULATE all of our fellow winners, but especially the five companies being honored who we are proud to serve as clients and to call friends.”

The final company rankings will be unveiled on May 12 at the annual awards event sponsored by Ivy Tech Community College.

November 2021 Newsletter

In this month’s newsletter, read about family succession planning, how to avoid retirement anxiety, the importance of embracing the holiday season and more!

Embrace the Spirit of This Holiday Season

By Tom Sponsel, CPA/ABV, CFF
Managing Partner
[email protected]

Given all the noise — vaccines, supply chain disruptions and political upheaval — you may not hear the holiday bells ringing at the moment. Don’t let the holidays sneak up on you. Tune out the negativity and plan to embrace the positive spirit of the season.

With Thanksgiving just around the corner, now is the time of year to focus on what’s really important and the things for which you should be grateful. Who are your rocks of support during shaky times like these? Set time aside to spend with them. The holiday season is all about fellowship. But those gatherings around the fireplace don’t happen automatically. You must deliberately plan visits with friends and family. Don’t wait until the last minute.

If you can’t get together in person, schedule a Zoom meeting or a Facetime call! With all of this cutting edge communication technology at our fingertips, we no longer have excuses for avoiding social situations. You wouldn’t want to be a Grinch, would you?

Trust us when we say that time with loved ones will be good for your emotional wellbeing in this chaotic climate. It will undoubtedly be a welcome distraction from the discouraging news cycle, giving you a fresh, strong focus for 2022. Although it feels like all the distractions are slowing us down, we need to keep pushing forward. Perseverance is the victor!

Whether you’re celebrating Christmas, Hanukkah, Kwanzaa or Festivus for the rest of us, be sure to live in the moment and cherish it. The pandemic restrictions have made us realize what we take for granted. If that includes the holidays for you, now is the time to start embracing them again.

Many of us are concerned about the division highlighted in the media. But most of us in our everyday lives experience the unity that brings us together. Make a difference in someone’s life — maybe just a smile, a friendly greeting or a word of encouragement to a person struggling in some manner … the Spirit of the Season!

If we can assist you further with your personal and business affairs, please contact Tom Sponsel at (317) 608-6691 or email [email protected].

Customer Service — (Re)setting Expectations

By Tom Sponsel, CPA/ABV, CFF
Managing Partner
[email protected]

Among other things, COVID has made us realize what we take for granted. One example is going out for dinner or drinks. We’re used to walking in to a restaurant or bar and finding a seat right away. Now, restaurants are so short-staffed that you may find yourself waiting an hour or more for a table even if the dining room is half empty.

The best way for restaurant owners to keep customers coming back is to be transparent about their limitations. They warn customers of wait times rather than pretending they’re operating normally. They even post a note on the door if they must close because they have no staff to work that day. You’ll be surprised at how forgiving customers can be if you’re open and honest with them — transparency is the key!

All business owners should take a cue from the food service industry right now. With supply chain disruptions and labor shortages, you have to drop your poker face and be realistic with your customers. Let them know your business isn’t what you’d like it to be right now, but you will do your best to keep them satisfied despite any delays. Give them a reason to return at another time, perhaps a discount coupon for their next visit. Be proactive in communicating with them and resetting their expectations based on the level of service you’re currently able to provide. Don’t shy away from the harsh reality of that current level of service. People respect honesty. That’s what makes them loyal customers in the end.

When a business isn’t running smoothly, there’s an understandable temptation for owners to ignore customers or give them the silent treatment. This is the wrong way to go. You may not have good news to report, but reporting something — such as a delay or a shipment failure — is better than nothing. Responsiveness is crucial in times like these. Always think of your customer first, no matter how “bad” your day is going. Timely communication and respect for one another are critical.

Sometimes, admitting weakness is the strongest thing you can do. You may lose prospective customers along the way, but if they respect your forthright nature and sincerity in upholding your desired level of service, they will come back.

If we can assist you further with your personal and business affairs, please contact Tom Sponsel at (317) 608-6691 or email [email protected].

From Person of Influence to Thought Leader

By Tom Sponsel, CPA/ABV, CFF
Managing Partner
[email protected]

A person of influence within a company is like a great basketball player, inspiring their team members to bring their A-game to the court. Like Michael Jordan and Larry Bird, they made even the shortest member of the team feel like they could soar up to the hoop and score a slam dunk. Their influence makes everyone better!

A person of influence isn’t afraid to speak up and add to the long-term vision for the business. In staff meetings, they’re the ones pitching the exciting, innovative, big-picture ideas. They’re constantly networking, gaining knowledge from others, keeping up with the latest trends and current events, and using that info to shake up the culture of their company. They challenge the team to stretch themselves and grow.

People of influence often go on to become thought leaders — casting a much broader net. In that position, they are humble, and their intelligence is respected — not only in the academic sense, but also in implementing successful applications in the real world!

By the time they’re considered thought leaders, others come to them for ideas and advice. As a leader, you’ll want to reach a point in which peers and younger professionals seek you out for counsel and guidance. Reaching this point provides validation that you’ve been doing something right all these years! Thought leaders also allow themselves to be vulnerable, acknowledging what they don’t know but also recognizing the opportunity to learn new data and theories.

Thought leaders are particularly important now. In these divisive times, people from all disciplines want leaders who can see both sides of an issue and bring an impartial balance to the discussion. Thought leaders provide calm, civil discourse amid the contentious rhetoric spreading these days.

How can you grow to be regarded as a thought leader? Express yourself! Post your professional tips and ideas on LinkedIn. Start a blog on your company’s website. Look for opportunities to speak at events within your industry and community. Provide honest and constructive feedback when asked.

It’s one thing to be a leader; it’s another to be a respected leader. So, whenever you have the chance, be sure to speak up, help out and lend your thoughts to business matters.

In times of heightened emotions, you need “an adult in the room” to move discussions to a fruitful conclusion. Good luck!

If we can assist you further with your personal and business affairs, please contact Tom Sponsel at (317) 608-6691 or email [email protected].

Spotlight: Tom Sponsel

Tom Sponsel is a “we” person. Although his name is on the business, he credits the entire Sponsel CPA Group team for making the firm what it is today.

Twelve years ago, with the help of his founding partners, Tom aimed to launch a new kind of CPA firm, gathering a team of trusted professionals with a diverse set of skills for the mission of providing clients not just financial acumen but executive-level counsel to bring more value to their endeavors.

Now, Sponsel CPA Group is one of the most highly regarded businesses in the state. The Indiana Chamber of Commerce has recognized it as one of the “Best Places to Work in Indiana” for the last three years. It’s also listed in the Indianapolis Business Journal’s Book of Lists as one of the top 25 Indianapolis CPA firms.

“We’re respected in the community, we provide a high level of service, and people enjoy doing business with us,” Tom said. “That’s incredibly gratifying, but I’m even prouder of the fact that we reached this level as a team.”

Growing up with six siblings, Tom learned the importance of teamwork early in life. He considers Sponsel CPA Group an extension of his family, and he enjoys seeing staff members find success in and outside of the firm. For him, the office is no different than home, as he loves his work and colleagues. But when he leaves for the day, he cherishes spending time with his wife, their two grown children and their five grandchildren.

For Tom, both his personal and professional lives are all about the people around him.

Mentors Do Matter

By Tom Sponsel, CPA/ABV, CFF
Managing Partner
[email protected]

Graduating from college and landing a job in the business world only means your education is just beginning, now in the REAL WORLD. You will quickly find that your new job demands a lot of “new things” that were never discussed in any classroom. You may quickly find that you need a resource, someone behind the scenes to help show you the ropes. That resource may be a mentor who can make a difference in your pace of learning. Some mentorship programs are formal while other mentor relationships just grow out of working with more senior people in your organization — they have “been there, done that.”

It’s important when you’re starting out in your career, but also as you climb the ladder of increased responsibility, to connect with the seasoned managers who are willing to help you see what all you can be. Their life experiences have given them a long-term perspective in a world of “I want it now.” That sense of perspective (“It will be OK”) can assist you when you are most frustrated and on the edge of despair in your career. Be receptive to feedback and advice from everyone, but accept it with discerning ear.

Younger employees tend to let their emotions get in the way of business. It’s understandable to be sensitive to criticism of your work, especially early on, but constructive criticism is vital for growth. Mentors can help open you up to being vulnerable and accepting of constructive criticisms and suggestions. All businesses require teamwork, collaboration and renovation. If you played sports, you may recall that your toughest athletic coaches made you better!

Mentors can impact the speed at which you excel. They can give you tips on how to keep moving forward and what pitfalls to avoid. That may mean handing off stalled ideas to co-workers, changing your approach to certain projects or communicating with managers in a different manner. Sometimes it even means sharing tough messages with you like: You need to change YOUR attitude.

While mentees can quickly see the rewards of their apprenticeship, mentors might not realize their own impact until years or decades down the road. They may not even realize they were someone’s mentor! This goes to show that you never know what kind of effect you can have or what kind of impression someone can make on you. So be cognizant of your interactions and relationships with colleagues. Those encouraging words or random acts of kindness may end up being more important and lasting than you think!

If we can assist you further with your personal and business affairs, please contact Tom Sponsel at (317) 608-6691 or email [email protected].

Your Personal Financial Standing After the Storm

By Tom Sponsel, CPA/ABV, CFF
Managing Partner
[email protected]

It’s safe to say we’ve all been preoccupied for the past 18 months, but now is the time to step back and assess your financial situation with a clear mind. Personal Financial Planning includes many facets:

Preparing a Personal Financial Statement
Analyzing Your Household Budget and Cash Flow
Education Needs Planning
Retirement Planning
Risk Management and Needs for Insurance of All Types
Estate Planning

We have come through a period of great disruption and uncertainty. In some cases, mere survival was in question. You should now take the proactive step of rejoining your many planning initiatives as a prudent manager of your personal finances. This, at a minimum, should be a regular annual analysis.

If you haven’t looked at your estate plan in a while, it’s definitely an appropriate time to do so, especially as we wait to see what happens with the various White House proposals. Ideally, you should review your estate plan every three to five years.

Now is also a good time for business owners to look at their financial condition after the challenging past year. Review what you did to survive in your marketplace and think about what you could have done differently so you can be better prepared as you move forward toward future challenges. History is a great teacher.

You know now what it’s like to be thrust into rough, unpredictable storms. So, take this time amid the calm to evaluate your personal financial situation and determine what you need to protect your net worth as well as your family’s overall financial wellbeing.

If we can assist you further with your personal and business affairs, please contact Tom Sponsel at (317) 608-6691 or email [email protected].

Now Hiring … Your Workforce

By Tom Sponsel, CPA/ABV, CFF
Managing Partner
[email protected]

Do you see all the NOW HIRING signs everywhere? The single most current challenge to all businesses is adequately securing the talent to run their businesses — at all levels! We hear this from every business owner and manager we talk to. Alert: Your competitors are coming after your workforce!

With the COVID-related federal unemployment benefits and multiple stimulus payments, many people aren’t eager to re-enter the workforce. And because in many cases these enhanced benefits are surpassing normal earned wages, job seekers are wanting more money to come to work. In addition, the economy is predicted to boom in the second half of the year, which will drive up wages and increase competition for the needed talent to serve the growth.

Finding new talent will be extremely difficult in the coming months.

Right now, prudent business owners should focus on retaining the talent they currently have — as they seek the talent to grow their business operations.

How do you make your business one that employees won’t want to leave? Connect with them! Don’t just delegate tasks and explain daily goals. Make meaningful connections. Share your long-term vision for the company and ask about theirs as well. Talk about how you can help each other grow and thrive. The current term is referred to as “engagement,” but this is no fad, as the new generations of talent will require — nay, demand — new thoughts and new leadership skills.

Don’t just connect with people individually either. Build a team. When people become part of a team with a strong sense of collaboration and camaraderie, it’s hard for them to quit. You can strengthen your team outside of work as well, with company outings, bonding activities, etc. If you think about it, most people spend as much, if not more, time with their co-workers than their family and friends. So, you should make your work environment feel like a comfortable second home.

In addition, the younger generations want to feel that the company they work for is connected to the broader community, so in your team building endeavors, seek activities that add benefit to the broader community.

Your team members will only be as loyal as you are to them. If you communicate and make meaningful connections, they’ll surely stick around for the long haul, which is vital in this ever-changing marketplace.

If we can assist you further with your business affairs, please contact Tom Sponsel at (317) 608-6691 or email [email protected].

February 2021 Newsletter

In this month’s newsletter, we talk about coping with COVID, succession planning, the benefits of visiting downtown Indy and more!

Succession Planning Must Be a Constant Priority

By Tom Sponsel, CPA/ABV, CFF
Managing Partner
[email protected]

With COVID disruptions and distractions, and the start of a new business year, succession planning is probably not at the top of your priority list right now, but you should never lose sight of it. It’s important to plan for the perpetuation of the business both from an equity ownership standpoint as well as the transfer of the executive management of your enterprise.

For a successful transition, it’s best to plan five to ten years in advance, but it is never too late to start! You’ll want to have a clear vision for the future of your business. However, if you are passing the business onto a younger colleague or family member, you may need to collaborate and compromise in order to bridge the generational gap and decide upon a vision that suits both of your respective objectives.

Determining who is promising or capable now will ensure a smoother transition in the future. You’ll want someone who shares your leadership values and corporate culture, but who is also in touch with the times, connecting with the younger workforce and easily adapting to the latest market trends, use of technology, etc.

If the family member designated to take the helm is too inexperienced, you can have them shadow a more experienced manager during a prescribed period of transition. An alternative would be to keep ownership within the family but hand over management duties to a longtime, trusted leader within the company. This allows for the current family ownership to retain their stake while giving up day-to-day oversight of operations to a more experienced management team, at least for a period of time..

The current owners might want to divest themselves from the company and reap profits from their prior years of investment. They can accomplish this either by an outright sale to a third party, a management buyout, an Employee Stock Ownership Plan (ESOP) or other alternative, customized structures.

Whatever you wish to do, make sure you start planning sooner rather than later. Time passes quickly and you do not want an unexpected health crisis or other unexpected tragedy to greatly diminish the value of the enterprise you have built!

If we can assist you with any issue related to succession planning, please contact Tom Sponsel at (317) 608-6691 or email [email protected].

What is Appropriate Focus for Leadership?

By Tom Sponsel, CPA/ABV, CFF
Managing Partner
[email protected]

As unprecedented political events flood your newsfeed these days, you may find it difficult to focus on tasks at hand. Your most critical objective should be to focus on what you can control — within your business and your personal life.

In the midst of political upheaval and the continuing impact of COVID, your stakeholders are looking toward their leader for inspiration and the confident, proper path forward.

Confidence is key, especially during times like these. If you brush away the dust of 2020 and enter this year with an assured attitude, your demeanor will rub off on stakeholders and everyone’s spirits will lift up the company. Move forward cautiously and with prudent skepticism, but hold your head high as you do so.

Persevering through tough times can bring out the best in us. As renowned psychiatrist and author Elisabeth Kübler-Ross said: “People are like stained-glass windows. They sparkle and shine when the sun is out, but when the darkness sets in, their true beauty is revealed only if there is light from within.”

Don’t discount your impact on your team and individual members thereof. A leader’s positivity can go a long way, not only in motivating team members to be more productive but in helping them through personal struggles as well. We all hoped that once the ball dropped on 2021 that a new day would spring up, but the past couple of weeks have been very dismantling for many. This is when a TRUE LEADER rises to the occasion.

Set your company up for the positives you were expecting for 2021. What initiatives did COVID disrupt that you can get back to work on now? What alternative services did you offer during quarantine that you can expand upon? What did you learn about yourself and your team that you previously thought would be impractical to implement? Whatever you do, keep moving forward. A body in motion stays in motion. Think about this quote from actor Robert Downey Jr., who knows a thing or two about getting knocked down and picking yourself up: “Moving forward, as though you have the confidence to move forward, eventually gives you confidence when you look back and see what you’ve done.”

If we can assist you further with achieving success in your business or personal financial matters, please contact Tom Sponsel at (317) 608-6691 or email [email protected].

Are You Leading?

By Tom Sponsel, CPA/ABV, CFF
Managing Partner
[email protected]

In the midst of this crisis, it’s all too easy to grow overwhelmed and lose sight of the long-term vision for your company. You may find yourself in that predicament now, amid the COVID-19 pandemic. But you have to rise above your anxiety and push forward as a leader. Your employees and their families, customers, and vendors are counting on YOU!

Stay confident. Part of leading a company is putting on a poker face during difficult times. It will rub off on employees and stakeholders, thus boosting morale and keeping the business up and running. Pessimism won’t get you anywhere. There’s more power in positive thinking. Confidence with an assertive attitude toward action can be contagious.

Be empathetic. Your employees and stakeholders are depending on you as a source of comfort and support right now. Be cognizant of their new normal. For example, some may be working from home and simultaneously caring for children. Young, single employees may feel like they are in a lonely silo and yearning for socialization! An effective leader anticipates their challenges and offers supplemental support — you must be flexible to their diverse needs.

Consider the community. Support your broader community to the extent you are able and be respectful of the CDC’s Social Distancing guidelines. Provide financial assistance to organizations feeding those who are food deprived. Check in on an elderly neighbor and see if they need assistance in some manner.

Be realistic. Hope for the best but prepare for the worst. Although you need to move toward the light at the end of the tunnel, it’s important to examine what’s lurking in the darkness. Here at Sponsel CPA Group, we’re staying tuned to COVID-19-related economic impacts and compiling the information in our COVID-19 Resource Center. Staying informed is the best line of defense against a crisis like this. As you prepare for the negative impacts to your business, plan for your solutions to those challenges. Monitor your cash flow and revise your budgets for the changing economic environment. Don’t assume your vendors and customers are in the same shape as you — they may be in worse shape! You MUST be proactive in facilitating your business’s survival in this unprecedented period during which a health crisis has been the source of an economic crisis. Four weeks ago, we would have never envisioned what we are living through today!

We’re definitely in the midst of a tough time. Hang in there, hold your chin up high and keep your eyes focused on the future of your business in recovery — it may take longer than you wish!

We are here to help you, so please reach out to any of our Partners and team members to assist you in your time of need.

Do You Make It Easy to Do Business with You?

By Tom Sponsel, CPA/ABV, CFF
Managing Partner
[email protected]

Many business owners are so focused on growing their business they forget to stop and assess whether they’re easy to do business with. Here are some things to consider when building relationships with customers and trying to earn their loyalty.

Responsiveness: Don’t leave customers hanging. Even if you don’t have sufficient time to talk to them, touch base to let them know when you will be available for a more in-depth discussion. Better yet, ask what other times they will be around to talk business. Communication is key! But get back with them as promised!

Hours of Operation: If you’re having trouble keeping up with customers’ needs, maybe you need to consider breaking past the standard 8-5 work week and adding evening or weekend hours. You need to adopt a 24/7 mentality, especially if you’re a small, self-owned business. You need to serve the customer when they can access you.

Payment Methods: New payment methods — such as PayPal and Venmo — not only speed up cash collections, but they appeal to younger generations of customers.

The First Impression: Your first impression is your best impression. Is your service truck clean? Are your employees in a uniform with an ID badge? Do your service techs put on shoe covers before entering a residence? Do you greet customers with a smile and a firm handshake? Think of your first impression as your audition. Make customers want to give you a callback and then offer you the role! Building trust starts with you. You can apply the golden rule here. Treat customers how you would want to be treated. Be the kind of business owner you would trust.

Expectations: Be careful with deadlines. Don’t throw them out, unless you’re certain you can do something by the time you say you can complete it. It’s best to under-promise and over-deliver. Customers like pleasant surprises; they want you to exceed their expectations. And if you have to go the extra mile at the last minute due to your customer’s poor planning, don’t hesitate to charge more for the rush job.

Be Honest: Honesty includes telling people when something isn’t possible. Be straight with them. It’s OK to say “no” to hasty requests. A lack of planning on their part doesn’t constitute an emergency on your part. Instead of trying to pull tricks out of your hat at the last minute, provide realistic solutions that are workable in the long term. Good business isn’t about making a fast buck. It’s about building long-lasting customer relationships. Honesty sometimes means telling the customer what they do not want to hear, but honesty builds credibility and trust.

Some Customers Aren’t a Good Fit: As hard as you may try, you can’t please everyone. The customer isn’t always right. Don’t bend over backwards for those who have unrealistic desires and expect Cadillac service at a Yugo price (remember those little, clunky cars?)

Character and integrity matter in the marketplace. Make sure you follow these guidelines to build your reputation as a business of choice, the kind people consider easy to do business with.

If we can assist you further with achieving success in your business or personal affairs, please contact Tom Sponsel at (317) 608-6691 or email [email protected].

Retirement Planning 101: Risk Management and Plan to Have Fun

By Tom Sponsel, CPA/ABV, CFF
Managing Partner
[email protected]

Welcome to Part 2 of a multipart series on Retirement: Planning, Executing and Enjoying!

In Part 1, we talked about spending and how to make sure you have enough retirement funds as well as how to plan to “control” your spending both before you retire (so you have adequate savings) and after retirement, when the paychecks stop! Now, we’re going to explore two other critical factors: (1) risk management and (2) how to plan to have fun in retired life.

Given the fact that most people retire around age 65 (mainly due to that being the minimum age to qualify for Medicare), healthcare is a key concern in retirement. For many people, Medicare is their primary form of healthcare insurance. More than likely, upon retirement you will need prescriptions or procedures not covered by basic Medicare. You will also need to consider securing Medicare supplement insurance, which can be very confusing with all the options and coverage available. If you were proactive in your pre-retirement planning, you may have built up funds in a health savings account, which are very helpful to pay medical costs.

Aging comes with risks, and insurance is about transferring the cost of those risks to a third party. There is a vast ocean of options out there; don’t try to navigate them on your own. Talk to a specialist well versed in Social Security and Medicare benefits and the various private supplemental plans available to provide the health insurance coverage you will require.

You may also want to consider life insurance (to maintain, discontinue or secure coverage), which can help with such issues as remaining debts in your estate, support a loving spouse upon your death or funds to provide for your last settlement upon death. Life insurance needs are facts and circumstances specific, so you should analyze with an independent professional.

Long-term care insurance is another issue, as you may need to seek rehab, physical therapy, assisted living, etc. Sit down with a trusted financial advisor to analyze Medicare and Social Security benefits that will cover these needs and allow you to protect assets remaining in your estate.

After all of this is done, you get to do the fun part — making your Bucket List.

Write down all of the things you felt like you never had the time or money to do while you were working. Whether you want to spend more time with your grandkids or visit the Egyptian Pyramids like Jack Nicholson and Morgan Freeman in the movie The Bucket List, enjoying more out of life is what retirement is all about!

Remember that retirement and what you do in retirement is a very personal decision process for you and your spouse. Do not allow yourself to be to be swayed by the generalizations that some of your friends may mandate on you in your retirement! Anything is open to you, and you should make the most of your retirement phase of life. For many it is only the beginning of a new chapter in life! May you have many new chapters yet to write!

If we can assist you further with achieving success in your business or personal affairs, please contact Tom Sponsel at (317) 608-6691 or email [email protected].

Retirement Planning 101: Spending

By Tom Sponsel, CPA/ABV, CFF
Managing Partner
[email protected]

Welcome to Part 1 of a multipart series on Retirement: Planning, Executing and Enjoying!

It’s never too early to start planning for retirement. Most advisors believe you should start your analysis at least 10 years before your desired retirement date. Of course, you should consider such questions as when you’ll be retiring, where you’ll be living then and what an enjoyable retirement looks like for you and your spouse. Another vital first step is looking at your current spending habits and what those similar expenses will look like in your retirement phase of life.

You’re probably spending more now than you think. Perhaps you should dial it back a bit and focus more on saving so you can have the retirement style of living you desire. Most people think they know their spending and where their money goes, but those same folks refuse to put it down on paper as proof and expose it for further analysis.

Most people spend a significant amount of time worrying about their retirement income, but they spend very little time on really analyzing their spending habits. They take a look at what kind of income they will have in retirement, but they do not prepare themselves for reducing their spending in order to “financially survive” in retirement. They seek to travel but make no provisions for such in their planning and retirement budgeting.

Analyze your social security benefits, 401k account and any other investments you may have. If you can afford to make more contributions now, you should. Maybe cut back on those Starbucks lattes and make eating out a weekend treat rather than a nightly dinner.

We recommend preparing a summary of expenses; one with a column for Current Spending and another column for Post-Retirement Spending. When placed side-by-side, the comparative analysis can be eye-opening, especially if both columns total the same and you expect less income in retirement. But you have time to change that projected result!

Tightening up your household budget now will allow for a more enjoyable retirement lifestyle. Do you plan on traveling, going out on the town, taking up new hobbies? Also consider the cost of healthcare, as that becomes one of our biggest expenses as we grow older.

Start tracking your spending on a monthly basis and make a personal financial statement. Go over it with someone other than your spouse so you have an impartial opinion. Sit down with a trusted financial advisor to determine what income you’ll generate during retirement and how you can better save now.

It’s better to be safe than sorry. Start planning now to ensure a bright future ahead! You have worked hard, so you should be able to enjoy retired life with peace of mind.

If we can assist you further with achieving success in your business or personal affairs, please contact Tom Sponsel at (317) 608-6691 or email [email protected].

Do You Need to Pivot? — Adapt to the Market

By Tom Sponsel, CPA/ABV, CFF
Managing Partner
[email protected]

Life doesn’t always go as planned, especially in the business world. But don’t be afraid of change! Use any detour or setback as a springboard toward new and exciting opportunities. As the year slowly draws to a close, you may want to ask yourself if your business needs to pivot in a different direction — which may include changes in product or services, marketplace, management, salesforce, maybe even the go forward vision for your company!

Many companies have done this with great success. Take PayPal, for instance. After operating as a subsidiary of eBay for more than a decade, it went on to thrive as an independent company. It changed its business model to attract users across multiple platforms outside of the eBay auction community. It smoothly stepped out of eBay’s shadow and formed its own identity.

Ash & Elm Cider Co., the start-up business featured in this month’s client profile, also adapted in a similar way. The founders, Aaron and Andréa Homoya, originally wanted to tap into the craft beer industry. But as they saw it crowding the market in Indianapolis, they decided to stand out by making and selling hard cider instead. (Read more about them and their company here.)

Other companies that successfully changed their business models include: Yamaha, which started as a piano company and went on to manufacture motorcycles, car engines, boats and more; Nokia, whose roots as a paper mill grew into the start of a mobile communications brand; and Abercrombie & Fitch, which detoured from sporting goods to focus on selling clothes. These are just a few of the many examples of booming businesses that have evolved for the better.

The bottom line is that you shouldn’t stubbornly stick to your initial vision if your results are disappointing — a brighter opportunity may be around the corner. Strive for innovation and challenge the status quo. And most importantly, prepare for failure. But don’t think of it as a final step — it’s just part of the pathway toward success.

This advice is very true for “start–ups,” which are trying to bootstrap their way to financial stability, as well as mature companies. Do you recall that IBM (the largest mainframe computer company at the time) thought the personal computer was not going to be an acceptable product in the marketplace and left the marketplace wide open for young startups at the time — like Dell!

Be OPEN to the PIVOT: Listen to your customers and the marketplace!

If we can assist you further with achieving success in your business or personal affairs, please contact Tom Sponsel at (317) 608-6691 or email [email protected].

To Be Successful, You Must Be Intentional

By Tom Sponsel, CPA/ABV, CFF
Managing Partner
[email protected]

Some leaders seem to simply have a golden touch. But success is no accident. The best leaders don’t stumble into it — they take a specific path. Here’s how you can follow suit.

Don’t be afraid of failure. Learn from it! The best leaders treat failure as a launching pad rather than a roadblock. In other words, fail forward. Figure out what didn’t work, determine what you can do to improve and keep pushing to achieve your goals. Keep in mind that you may need to modify those goals along the way.

Be intentional. Operate in a deliberate manner. Effective leaders come to decisions through careful and extensive analysis. They always ask questions and hold themselves and their team members accountable. They keep track of goals, evaluate progress and sometimes even bring in a third party to oversee the company’s practices with a fresh set of eyes.

Maintain a healthy balance. Great leaders seamlessly juggle personal and professional responsibilities. And they never lose sight of their long-term goals in and outside of the office. They have a specific vision for their work and home lives.

Whatever kind of leader you are — manager, supervisor, CEO, etc. — and whatever sort of business you’re in, this advice applies to you. Hopefully it helps you on your path to success!

If we can assist you further with achieving success in your business or personal affairs, please contact Tom Sponsel at (317) 608-6691 or email [email protected].

How to Avoid Retirement Anxiety

By Tom Sponsel, CPA/ABV, CFF
Managing Partner
[email protected]

It’s never too early to start thinking about retirement. What’s especially important to consider is the fact that it’s different for everyone. It doesn’t have to mean a life of hanging out on the golf course or lounging in the sun. You may find yourself busier in your retirement than you were in the working world. Retirement can be whatever you want it to be!

The thought of retiring can also be overwhelming, as it marks the start of a whole new lifestyle for you and your loved ones. Don’t allow the status quo expectations of retirement at age 65 corner you into a decision that you are not ready to make. You need to not only include financial planning in your plan but also activity planning so you don’t become bored! In order to avoid retirement anxiety, here’s a checklist of questions you should consider as you start the planning process.

When do you want to retire?
What are the major steps you need to take to prepare for retirement? (Who will take over your responsibilities in your business? Are you financially prepared? Are you mentally prepared?)
What are the main things you want to do with your free time? (Make a list of 5-10 activities.)
Do you want to move your homestead?
Do you want to travel?
What are your spouse’s needs/wants post-retirement? Are you in agreement?

If you are a business owner, you may not want to walk away entirely. Think about how active and involved you want to remain. Consider stepping down and taking on a lighter advisory role. Maybe limit your time in the office to one or two days a week.

Most importantly, don’t let retirement sneak up on you. Be proactive and intentional. Retirement anxiety comes from lack of consideration and preparation. So be sure to plan ahead of time and craft a crystal-clear vision of what you (if applicable — your spouse) want your retired life to look like. Also, be realistic. Know your limitations and be conscious of when it’s time for you to take a break from the business world. And make sure that break is exactly what you want it to be!

For further advice on preparing for retirement or assistance with your personal and business affairs, please contact Tom Sponsel at (317) 608-6691 or email [email protected].

Focus on the Long-Term Vision

By Tom Sponsel, CPA/ABV, CFF
Managing Partner
[email protected]

Convincing stakeholders (employees, managers, shareholders, vendors and customers) to invest resources in your business can be a daunting task, especially if you are focusing on a Long-Term Vision over numerous operating business cycles. Staying committed to building a company isn’t always easy, as the day-to-day headaches can get in the way of the leader’s vision! But with a little time, perseverance, focus of a committed team and faith, you can work toward creating a consistent pattern of growth and keeping your stakeholders committed and energized!

In order to keep growing as a company, it’s important for everyone involved to never lose sight of the BIG PICTURE — that vision thing! Look beyond the ever-moving peaks and valleys of your place in your respective marketplace and focus on goals for the future. Perseverance is the key. The Stock Market ebbs and flows, but in the closely held business world, don’t get distracted by what goes on in the Publicly Traded Company world. Always be aware and vigilant over the macro-economic environment, but focus on the Key Performance Indicators for your respective industry and most importantly your business enterprise.

A good start is to develop a three-to-five-year plan. Determine the most essential resources you’ll need to reach the level of success you desire and have planned for. Outline your goals and the course of action you will take to achieve them. Establish a timeline with milestones to measure your progress. Share your vision with all your stakeholders and set realistic expectations. Remind them that the seeds of investments take time to germinate. The most beautiful flowers don’t bloom right away, so to speak.

Building a business takes patience and a positive attitude. Don’t let minor setbacks get you down. You’re bound to hit a few bumps on the road toward a bright future. Allow your LONG-TERM vision to be your “Guiding Light!”

If we can assist you with achieving success in your business or personal affairs, please contact Tom Sponsel at (317) 608-6691 or email [email protected].

Responsibility Breeds Motivation

By Tom Sponsel, CPA/ABV, CFF
Managing Partner
[email protected]

Every good manager knows that the key to improving productivity is to hire talented people with skill sets that are commensurate with the needs of the workforce. But as a business grows and more managers are necessary to supervise a larger number of employees, breakdowns can sometimes occur when it comes to delegating responsibility.

Good delegation requires adequate orientation to the task or duty, timely follow-up, meeting deadlines and holding the delegate accountable for the quality of the project. Where managers become frustrated is when they do not see the results they wanted at the end of the process.

A mistake often made is when the supervisor takes the project back and completes it himself or herself. While it may serve as a quick-fix, it only increases the burden on the manager, reducing their capacity to act in a supervisory mode. And it sends the message to the employee that they do not have your trust.

While it’s tempting to blame problems on a lack of drive on the part of the employee, in my experience responsibility actually breeds motivation. The majority of workers desire to do well in their endeavors, and will raise their level of performance to meet higher expectations.

The secret is that the delegation of authority must be performed in a way where the employee is held accountable to the level of expectations. When a project is turned in with sub-par results, the manager should explain where their work is lacking and have them fix what’s wrong, rather than the manager allowing it to boomerang back to them to fix or complete.

Good management is in many ways a teaching process, and that takes time and patience. By omitting the learning experience that comes with timely feedback and accountability, a supervisor is only setting the employee up for more failure.

I believe that when employees know they are solely responsible for the delegated project and that you’re depending on them to deliver at a commensurate level and on a timely basis, they will become more motivated to meet those expectations.

If you really want to motivate your staff, you should delegate liberally, providing clearly defined expectations and giving employees the autonomy they need to complete a task. And let them know they’ll be held accountable to that prescribed high standard.

The only way to build a capable and qualified staff that will help your company grow is by investing your trust in them, so managers feel comfortable delegating important duties, and employees are properly motivated to deliver polished returns.

In the end, you’ll find you have a stronger team of employees, a less frustrated manager, and a culture of coaching that workers will pass on as they move up the chain.

If we can assist you with achieving success in your business or personal affairs, please contact Tom Sponsel at (317) 608-6691 or email [email protected].

Does Your Business Have Any ‘Broken Windows?’

By Tom Sponsel, CPA/ABV, CFF
Managing Partner

You may have heard of the “broken windows” theory, but probably in connection with politics and law enforcement. Former New York City Mayor Rudy Giuliani famously employed this philosophy in the 1990s to clean up his city.

The basic idea of broken windows, which was first introduced by George L. Kelling and James Q. Wilson in The Atlantic in 1982, is that if you let the little problems slip, like broken windows, vandalism and rampant graffiti, bigger problems eventually become insurmountable. Ignoring tiny errors or mistakes, invites ambivalence to much larger problems!!

Some years later author Michael Levine adapted the theory to the business world in his book, Broken Windows, Broken Business: How the Smallest Remedies Reap the Biggest Rewards. His take was that if you let the little things degrade in your operation, particularly how you treat your customers, it will eventually impact the entire company.

When problems go unaddressed, they tend to repeat themselves. Soon a mistake becomes standard operating procedure. That sets the bar even lower for other areas of your operations. Employees start to take less pride in what they do, impacting productivity and morale. Clients notice they aren’t getting the level of customer service they’re accustomed to, and begin to look for other partnerships.

Say you’re walking by a restaurant and you’re hungry. You notice the windows are so dirty you can hardly see inside. Would you want to go in? Or you do enter and notice there is flaking paint and chipped plaster on the walls near the cooking area. Does the grumbling in your stomach suddenly stop?

Even though these things may have no impact on the quality of the meal you receive, they send a signal to customers — that management doesn’t care about the details and makes you wonder what else are they cutting short and ignoring a commitment to quality.

Transfer the example to a professional office setting. Is the carpet in the reception area worn? Is there nobody manning the front desk, or the person there seems disengaged and bored? Do your employees dress and behave in a professional manner? When people call your office, are they put on hold for long periods with an automated message telling them, “Your call is very important to us?”

If you are the owner or manager of a business, you have to take on an almost obsessive-compulsive personality when it comes to how the organization runs on a daily basis. You must manage the organization in a very meticulous, deliberate way so that any problems are quickly discovered and addressed.

Take the initiative to see your company from the perspective of a current or potential customer. Are they getting the experience they want from the engagement? Are there shortcomings, even minor ones that could be remedied to improve how they view your organization and their overall experience in interacting with your company?

The best way to determine how people see your business is to ask your customers. Reach out to them for feedback from time to time, and ask them to report flaws in what you do. Invite constructive criticism—to make your operation BETTER!! Some industries even use secret shoppers or other monitoring services to report back with unfiltered information you can use.

We can apply the broken windows idea to virtually every aspect of a business. Is your website up to date and easy to use on every platform? Is it simple for people to find and contact your company? Is the method for receiving incoming inquiries monitored constantly and professionally?

In finding the little flaws in your business – and keeping them from becoming big ones – the secret is to think about the type of brand you want to build for your organization, and then work to make it reality. Envision the customer service experience you want your customers to have, then find out if that’s what they are actually getting. As the owner– it is OK to be OCD about customer service and your customer’s experience!!

If you find there are any broken windows in your business, even teeny cracks the customer can’t yet see, fix them quickly before they become the new normal. Duct tape may keep the glass from shattering, but replacement allows the customer to enjoy the experience.

If you need any advice about how to find and fix any issues challenging your organization, please call Tom Sponsel at (317) 608-6691 or email [email protected].

Should I Fire My Largest Customer?

By Tom Sponsel, CPA/ABV, CFF
Managing Partner

Everyone who’s ever run a business understands the concept of having a customer who’s more important than the rest. After all, nothing happens without a sale, and no sale occurs unless there’s a customer. But a very large customer may not always be the best thing for your company.

Often we find that a business owner/manager hasn’t performed adequate analysis to see if their biggest customer is really producing the outcomes they desire. They may look at the top line and see that their largest client is responsible for a huge chunk of total revenue. What they don’t realize, is that single customer may be eating up a disproportionate share of resources and thus not having the impact on the bottom line as assumed.

It’s also not healthy when a firm has a customer so big that they are economically dependent on them. When this happens, we even see the customer starting to dictate policies, procedures and prices. They monopolize resources and hinder the ability of a company to grow and evolve. Soon your business becomes a mere extension of their business. They many times become a barrier to growing the enterprise with new customers, even some which may have greater bottom line potential impact!

The corporate world is littered with people who built a great company, but depended on a single client for 60 or 70 percent of their revenues. When that went away …the firm floundered.

Leaders should strive to have a customer base that is large and diverse enough, that the sudden loss of any single customer would not threaten their continued viability as a going concern. Always preserve your independence to the point you have the freedom to “fire” your biggest customer, if the relationship is no longer mutually beneficial.

It’s easy to become bedazzled by a big client. You enjoy the prestige of partnering with a high-profile company, and the numbers on your gross revenue spreadsheets are eye-popping.

But when is the last time you performed a gross profit analysis, looking at not only sources of revenue, but how much you are spending to serve them? Explore beyond the topline numbers to reveal the true cost of having them as a customer. Are there other initiatives you’ve been wanting to explore, but your team is so monopolized there isn’t time pursue them?

There’s nothing wrong with having a big client who generates profits for your business. But a prudent business leader will look at the longer term, and manage clients so as best to perpetuate the sustainability of your own organization, including your overarching mission and the welfare of your employees. You want every relationship between your company and its customers to be win-win for both parties.

The example of one of our clients best illustrates this point. During the Great Recession, they lost a major customer and as a result a big portion of their topline revenue. But they were surprised to find that their profitability actually INCREASED! That’s because they had lost sight of how much it was costing the business to serve that one client. By being forced to explore other opportunities, they were able to make up the difference – and more.

In another case, the largest customer demanded and was provided terms which allowed payment of invoices within 75 days rather than the normal 30 days. Thus company was being “the Bank” for the large customer thus requiring the company to increase their working capital line of credit to fund the accounts receivable extended terms, thus increasing their risk and interest costs.

This is why it’s prudent to run an analysis from time to time on your customers. Take a look at not just the benefits, but also the risks of having a large customer.

If the overall profitability of a customer is not commensurate with the level of services they are demanding, or if you find yourself unable to adequately meet other customers’ needs, or if you find yourself economically dependent on the leadership of another company, you might want to consider severing or altering that relationship.

It’s better to fire your biggest customer than become beholden to them, which may stifle your own ability to GROW! Because when that happens, for all intents and purposes, they own your company as well as their own. They may squeeze your profit margins that they become razor thin, and/or demand additional services that further squeeze your profitability. You find yourself in a vicious cycle of trading dollars, but not realizing an adequate rate of return on your investment.

In every healthy business relationship, it must be mutually beneficial for both parties. Just make sure your well intended desire to hang on to that BIG customer, does not get in the way of other growth objectives of your business!!

If you need any advice about how to analyze your customer profitability, please call Tom Sponsel at (317) 608-6691 or email [email protected].

Employee Spotlight – Tom Sponsel

After 40 years in public accounting, Tom Sponsel is a fixture in the Central Indiana business community. He has helped countless people achieve their personal and entrepreneurial dreams.

Nearly eight years ago, he had the idea to launch a new kind of CPA firm, gathering a team of trusted professionals with a diverse set of skills and unified in the mission of providing clients not just financial acumen, but executive-level counsel to bring more value to their endeavors. Tom is proud of the fact that in most cases, our clients become friends, the ultimate endorsement of a trusted relationship.

Under his leadership as Managing Partner, Sponsel CPA Group has been recognized as one of the fastest-growing firms in the Midwest. Tom provides comprehensive strategic advice to corporations, family-owned and closely-held businesses and nonprofits at every stage in their growth cycle. He is also recognized for his experience in succession/estate planning and mergers & acquisitions.

In addition to being a CPA, Tom is Accredited in Business Valuation (ABV) and Certified in Financial Forensics (CFF), and provides expert testimony in legal proceedings. He often makes public/media appearances, has been profiled in The Indianapolis Star, and has received awards and professional acclamations, for which he is humbled.

Tom’s lifelong passion for community service has become a core staple of the firm’s culture. Tom and his six siblings are very proud of their heritage of growing up on the near-eastside of Indianapolis. He has held many volunteer positions or donated his time to numerous community endeavors, including the Catholic Community Foundation, Arsenal Tech High School, St Philip Neri Parish & School, St. Vincent Health, Perry Township Schools, the Indiana CPA Society and the Archdiocese of Indianapolis.

He takes great delight and comfort in his wife of 42 years, Barbara, their two grown children and five grandchildren. When he’s not working or volunteering, Tom likes to read – especially business profiles and self-improvement books – watch the Colts and Pacers, and play with his grandkids, who “make the world a lot more joyful.”

“Clearly the last eight years have been the most exciting times in my professional life. We’ve worked hard to get here and enjoy the success that we have,” Tom said. “I think a lot about the promising future that lies ahead of us, and cultivating the people who will take us there. I get a great deal of personal satisfaction in seeing young people recruited out of college, join the firm, progress and grow into leaders.

“We truly do it all as a team. We all work together in a very unselfish way, and that’s been the key to what we’ve achieved — TOGETHER!!! … and WE HAVE FUN EVERYDAY!!!

CEO, Where Is Your Time Best Spent?

By Tom Sponsel, CPA/ABV, CFF
Managing Partner

(Part 1 of 2)

When you’re the leader of an organization, one of the most important daily struggles is to determine where to spend your time. As a CEO (or whatever title you hold), it’s your duty to take a broad view of the company, recognize untapped opportunities and create the strategy that leads to greater success and prosperity.

Too often we fall into the trap of working “in” the business instead of “on” the business.

This is especially true of small- and medium-sized organizations, where the operations may require more direct oversight by the top leader. Sometimes this sort of personal intervention is necessary to make sure the “trains run on time” — keeping customers happy, making sure employees are motivated and on-task, products and services are being delivered on time, etc.

But if you’re the sort of CEO who wants the business to grow and evolve beyond where it is today, you should set aside time on a regular basis to take a step back and look at the bigger picture. Preferably at least once a week, reserve a portion of your schedule to assessing your processes and systems. Are they working the best they can?

It’s a matter of being a proactive leader instead of a reactive one. A reactive leader soon finds themselves constantly responding to crises large and small. Their days are so filled with responding to critical situations that there’s never any time to plan and strategize so these sorts of emergencies can be avoided in the first place. You become a CEO that focuses more on fixing the past errors, rather planning for your future successes.

A proactive leader devotes time to looking ahead, finding ways to make the company better and more efficient. They recognize weaknesses in their operation that could lead to strife, and endeavors to improve them so the worst scenario doesn’t come to pass.

When you have superior systems in place, most crises can be resolved before they happen, or any damages mitigated after the fact.

When a leader acts in this way, their team members will recognize them as a forward-thinking individual who strives to create a culture of continuous improvement and learning. You’ll find yourself with a stronger, more loyal workforce. Your whole company will be energized to focus on the FUTURE and your success!!

It can be very hard to set aside this time to planning. Most leaders of an organization already put in a lot of hours at the office, so it can seem like a zero-sum game. But if you make that effort to spend even a few hours a week toward analysis and planning, the rewards will come back to you multiplied many times over.

From a time management perspective, think of this not as a cost but as an investment toward a better future.

As a CEO or manager, your primary duty is to focus on creating the most value you can bring to your organization. By coming up with a vision for change and improvement, and working to implement it within your business, you will find this the best time you can spend.

In next month’s article, we’ll talk more about turning your vision into reality.

If you have any questions or comments, please contact Tom Sponsel at (317) 608-6691 or email [email protected].

The Baby Boomer Challenge: Avoiding the Post-Retirement Blues

By Tom Sponsel, CPA/ABV, CFF
Managing Partner

(Part 4 of 4)

After discussing the financial, planning and psychological impacts of retirement, the Baby Boomer Challenge wraps up today with a talk about the blues – the post-retirement blues.

Ask anyone who has retired recently, and you’ll discover it’s a real phenomenon. This can be especially true for go-go Type A people from the business world, who have invested so much of themselves in their career it has come to define them.

If you’re married or in a committed relationship, the first person you should be talking to is your significant other. Whatever career phase they are in themselves, understand that your retirement also impacts them. First and foremost, don’t expect them to automatically change their working life or daily pattern of activities just because you have.

I know of one gentleman retiree whose wife of 40 years sat him down shortly after his transition. I respect that you’re changing, she told him, but that doesn’t mean I am. Don’t try to treat me like an employee you can boss around. Just because we’ll be spending more time together during the weekdays doesn’t mean I want our relationship to change!

Other spouses may feel similarly, or completely the opposite. They key is to “do the dialogue.”

As discussed in the previous article, finding another activity about which you are passionate is a must, whether it’s looking after grandkids, volunteering for a charitable group or something else. Your other activity could be a “second career” that you pursue at your own pace and intensity. Be aware, though, that just as during your working life it’s easy to become overloaded. People realize you have a lot more time on your hands, and soon look to fill it with their own needs and wants.

I know of retired individuals in their 70s who say they’re busier now than they ever were during their “working” careers! Learn the power of gently and politely telling people, “No.”

Make sure to carve out some time for things you’ve always wanted to do but never had time: travel, take up a hobby, fix up an old car, create a work of art, go back to school and dive into a new fresh area of knowledge that you have always been interested in! Everybody has a “bucket list” … time to start emptying yours out!

For some, that could even be starting a second career. If you are going to make that move, do it with your eyes wide open – especially if it’s something you want to do full-time. Consult with a trusted advisor on how any earnings could impact your Social Security benefits.

Socialization is also an important ingredient in avoiding the post-retirement blues. Get together with friends, attend religious services, join or start a social group like a book club. It’s as easy as picking up the phone, or sending an email or text message.

Whatever you do, avoid the situation where you find yourself sitting at home with nothing to do. A sense of purpose is key to your feelings of self-worth. Before that was probably largely tied up with your business or the company you worked for.

Now it’s time to transition to something new. Seek out activity and engage with other people, and you will discover a fulfilling retirement where the blues stay at bay.

I recently read a book “The NEW Retirementality” by Mitch Anthony which is a comprehensive analysis of what to look for in “Retirement” and how planning requires much more than just a retirement savings account. In fact, in most cases (realizing it is all relevant) the size of your retirement savings account may be the least of your concerns. Retirement is about happiness, and you are the only one who can define that for you and your loved ones.

If you would like advice on your retirement planning, please contact Tom Sponsel at (317) 608-6691 or email [email protected].

The Baby Boomer Challenge: Psychological Reality

By Tom Sponsel, CPA/ABV, CFF
Managing Partner

(Part 3 of 4)

In the first two articles in The Baby Boomer Challenge, we discussed planning for retirement and the financial aspects of preparing for a post-work life. Now it’s time to talk about the psychological impact of stepping away from your career.

This can be a touchy subject, especially for business owners and managers. They are by nature can-do people, the type who focus on achieving their goals rather self-analysis of their own motivations. Having attained so much professional success, they are therefore less prepared to transition to a life that is not defined by their career.

After assisting countless people through succession planning and retirement, I can speak from authority in saying that many of them experience a loss of self-worth. They are so used to being in the thick of things that having the daily pressures of the workplace suddenly removed can feel abrupt and even traumatic.

At its most basic level, there is an adjustment to not physically going into the office every day. Recently retired people will say they don’t know what to do with themselves. There’s only so many times you can walk the dog around the block or play golf. That simple day-to-day routine of getting up and going to work gives people structure that makes them feel valued.

Another loss occurs when there is no longer a continuous stream of people seeking you out for advice and counsel. A person in a senior position can take great satisfaction from having their expertise utilized by others for the benefit of the organization. When that stops, they feel their skills and experience are no longer relevant and accordingly they believe they personally are no longer relevant!

This can translate to a sense of “losing” their professional status, which also means a hit to their self-worth. People want to know they still have something to contribute.

One can fill these gaps through exercise, hobbies, travel, watching over the grandkids and other activities. And there’s volunteerism, which is a terrific way for retirees to feel connected and appreciated.

I have seen many business executives go into the not-for-profit area, either as a part-time volunteer or a full-time position, and find a whole new identity waiting for them. They gain the socialization of the workplace as well as the utilization of their skillset.

Another option is to keep working but in a limited role. An emeritus position, perhaps a day or two per week, can allow a manager to feel like they are still contributing. A role that focuses on mentoring up-and-coming leaders can be especially satisfying.

This can bring its own set of challenges, of course. I spoke with one former executive who said that, even though he enjoyed coming into the office, it was difficult seeing someone else occupying his old office and leadership role.

He eventually sought professional counseling to get through this phase – something that is not at all unusual. There is no stigma in asking for help, and is something that should be actively encouraged.

By all means, if you’re approaching retirement age and don’t feel like stepping away – don’t! I know of some executives who refuse to even utter the word “retirement” because they fear the unknown. There’s no rule that says you have to retire when you’re 65, or 75, or even 85!

But sooner or later, nearly all of us will be faced with transitioning to a post-working phase of life. Don’t underestimate the emotional aspects of this change. The key is to explore this new terrain with the same gusto that they brought to conquering their professional endeavors.

The key “take-away” of this article is that if you or other loved ones are approaching the “retirement phase,” approach it with honesty and realism. Retirement is different for everyone. I know individuals who are still working into their 80s and are loving it! And others who retired at age 55 and would not change a thing.

In each case their success was determined by a deliberate analysis (along with their spouse) and an intentional plan for a Happy Retirement!

Look for the final installment in this series next month as we discuss transitioning into your post-retirement life.

If you would like assistance with your retirement planning, please contact Tom Sponsel at (317) 608-6691 or email [email protected].

The Baby Boomer Challenge: Planning for Retirement

By Tom Sponsel, CPA/ABV, CFF
Managing Partner

(Part 1 of 4)

In 2016 the first wave of Baby Boomers turns 70. The youngest are already in their 50s. So if they have not already taken the off-ramp to retirement, they should already be thinking seriously about it.

This article is the first in a four-part series we’re calling The Baby Boomer Challenge. It’s a mental call-to-arms for the generation that helped change the world – as well as those who came after.

A group that has been defined by passion and a thirst for exploring new things should apply that same zeal toward planning their post-career life – financially and psychologically.

Whether you’re 50 or 70, you need to start thinking about the retirement you want while you’re still working. Talk to your spouse or significant other. Seek counsel from people you trust. Tap expert advisors! And start asking a lot of questions.

These should include:

When do I want to stop working? When does my spouse want me to stop?
Do I want to keep working, but not full-time?
What kind of lifestyle do I want post-retirement?
Where are we going to live? The same city or move elsewhere? Urban or Suburbia?
Do we want to downsize to a smaller place now that our homestead seems oversized?
If we do move, is it better to rent or buy? House or apartment?
What steps do I need to take to get ready for retirement?

For entrepreneurs or business owner/managers, it may well be that they don’t ever see themselves completely leaving the company. If you have good health and truly enjoy the work, there’s nothing to prevent you from continuing into your 70s or even 80s.

But maybe step away from a top leadership role. Talk with your business partners about coming in a day or two a week in a support or advisory role. You may find that your presence and experience is still a valued asset they want to retain. Can you allow yourself to participate without being “In Charge”?

If you are prepared to walk away entirely, changing where you live can help you make that mental “break” between your old life and the new – and may make good financial sense as well.

Many successful people already find themselves having a second home, whether it’s a house they own in Florida or Arizona, an apartment near children/grandkids or just a time-share in a popular vacation destination.

If that’s already the spot you go to relax and unwind, it may be the place where you should spend most of your time. If you do take the “snowbird” path of migrating with the seasons, consider whether it makes sense to maintain Indiana resident status or not.

Also consider any looming health and medical issues that may impact you or your loved ones’ lifestyle. Weigh how that might affect your retirement picture, such as needing to work longer and save more. Or, conversely, retiring early to lighten the physical and mental load.

As you’re hashing through these questions, make sure to talk to your extended family, too. Think about what you want to do in retirement – and what you don’t want to do. Some people want to travel the world. Others want to stay close to family.

Retirement is all about making choices. And the more prudent Baby Boomers invest in significant planning and they find that results in more choices for a successful retirement.

Look for next month’s article, which will focus on the financial aspects of retirement planning.

If you need advice on preparing for retirement, please contact Tom Sponsel at (317) 608-6691 or email [email protected].

Sponsel named to CICF council of advisors

Tom Sponsel, Managing Partner of the Sponsel CPA Group, has been nominated and selected for the Professional Advisor Leadership Council (PALC) of the Central Indiana Community Foundation (CICF). His three-year term began March 2016.

CICF partners with nonprofit groups, government agencies, civic leaders and philanthropic endeavors to coordinate efforts to make Central Indiana a better place to live. This extends to helping families become self-sufficient, encouraging visitors and businesses to invest here, helping young people become ready for college and beyond, bolstering the community’s intellectual capacity and making neighborhoods safer and more connected.

As a member of PALC, Sponsel will bring four decades of experience in public accounting and strategic business counseling to the table. PALC members meet regularly to discuss the area’s charitable sector and improve relationships with various professional advisors.

Sponsel has served in a number of leadership roles in professional and civic organizations over the years. This includes positions with the Catholic Community Foundation, St. Vincent Health, Perry Township Schools, the Financial Council of Archdiocese of Indianapolis, the Indiana CPA Society, charter schools and mentoring high school students.

“It is an honor to serve CICF on their professional advisor council,” Sponsel said. “Their mission is critical to the long-term health of our community, and their record of success is truly astonishing. I look forward to contributing in any way I can.”

Do I Want My Business to Become a Family Business?

By Tom Sponsel, CPA/ABV, CFF
Managing Partner

First generation business owners are by their nature “can-do” people who focus like a laser on establishing and growing their company. Often they came up with a new idea for a product or service that beats the marketplace. They bootstrapped through the lean early years, and after much hard work and perseverance reach a level of success they are comfortable with.

By the time they’re in their middle-age years, business owners may have children of their own, perhaps already in high school or even college. But because they’re so involved in the day-to-day management of the company, they have never really asked the question: Do I want my business to become a family business?

It is possible they have just assumed their children will want to carry on the leadership of the company after they retire. Or the kids have expressed interest in other fields and endeavors, so they believe they don’t want to take over someday. Either assumption can be wrong, so the solution is: ask the question!

Have a purposeful and deliberate talk with your children at an early age – while they’re in college, or even still in their teens. You may be surprised how much thought your child has already given to an issue that has largely gone unspoken.

Talk about how they see their future, what they want to study, the things they want to accomplish. Ask the forthright question: Do you see yourself having a role with the company? Is it something they’d like to at least explore before they decide on another path?

If there is an interest, set up a specific strategy to give them a role in the business, prepare for the possibility of passing on the mantle of leadership someday. Give them a well-defined role with set duties and responsibilities, and see how they respond in the workplace. Set a defined timeline to get together and review their progress.

Ask them how they like the work. Tell them to give you an honest answer. One of the hardest questions a parent can ask a son or daughter is if they genuinely enjoy working in the same enterprise as Mom or Dad. Kids are naturally reluctant to tell their parents if their life’s work may appear as “boring” to the younger generation. Inquire as to their personal vision for their chosen vocation – what attributes are most important to them.

Taking over an enterprise should be the child’s personal choice, not an obligation they come to resent. So think about bringing in a trusted advisor to facilitate the discussion in analyzing the possibilities.

If after some time, the children do express a desire to eventually run the company, come up with a plan to guide them into a leadership role. Set a desired timeline for them moving up the chain and transitioning the levers of power. As problems or conflicts arrive, deal with them head-on through communication.

Look at this as a sequence of phases of additional responsibilities, well defined and understood up front.

One piece of advice: During the workday, try to treat each other as respected co-workers rather than parent and child. This will help them grow in their professional capacities by requiring them to meet the obligations you would expect of any other employee. It’s highly advisable for their direct supervisor to be someone other than yourself.

And their regard among other employees will swell as they realize the child is not being coddled as the “boss’ kid.” It will already be self-evident to your workforce since you probably share the same last name!

The opposite goes for nights and weekends: When you’re off the clock, be a family and enjoy your leisure time together. Leave the shop talk at work.

But first, start the conversation with your kids. I have personally seen the anguish that can occur when parent and child make erroneous assumptions about what the other wants. Such as a successful businessman with a daughter whom he thought wanted nothing to do with the company he built.

When he sold the business, he learned the hard way she had been waiting for him to approach her about joining him — while he made other plans because she hadn’t directly expressed an interest. As she so succinctly, sweetly stated, “But Dad, you never asked me!”

Whether your kids choose to follow in your footsteps or find their own path in life, talk to them early so you can each set the right direction for a successful and happy journey — not only for your business, but also for your family relationships.

If you would like assistance in considering passing on a family business, please contact Tom Sponsel at (317) 608-6691 or email [email protected].

Great Business Owners Often Neglect Personal Finances

You’re an all-star business owner/manager. The company is growing, revenue forecasts are all pointing up, and new opportunities seem to be lining up before you. Everything’s looking great… except for your personal finances.

It’s a conundrum we’ve encountered all too often as CPAs: a world-class business owner whose company ledger is all tidy, while their own family finances are in disarray with minimal planning in place.

It’s not necessarily surprising, if you think about it. Top-notch business people obsess so much about their company, thinking strategically about its growth, that they lack the time and energy to place a similar emphasis on their own future. It’s like a person who keeps their professional work space shiny as a penny, while their house is cluttered.

In looking at the personal financial issues of business owners, they’re often deficient in one or more of the following areas:

Lack of diversification in investment portfolio
Lack of estate planning
No will or outdated will
Underinsured or not insured
Not planning for retirement

As a business owner, it’s natural to have confidence in your own enterprise and see it as your best investment. But it’s important to diversify your holdings so you can reap the highest return and protect yourself against calamity. The Great Recession wiped out many owners who hadn’t planned for such a possible event. Think of diversification as your armor and shield.

In terms of estate planning and wills, it’s surprising how many people in their 40s, 50s or even older have not done any at all! More commonly, people make out a will and a plan for passing on their accumulated wealth but leave it untouched for years – even decades.

If you don’t have a will, implement one immediately. Ideally, wills should be updated every two to three years. Circumstances can change greatly during that time, whether it’s the need for new trustee or a redesignation of your favorite charities you want as beneficiaries.

Some business owners fail to properly insure themselves personally – life, disability, home, personal property, etc. – because they are optimistic people, or would rather spend the premiums on something else. Like diversification, it’s a matter of protecting yourself against the unforeseen. Consult with a trusted insurance broker to actively manage your risk exposure.

When retirement age approaches, business owners often don’t have an exit strategy. Much of their wealth may be tied up in the company, so it’s a matter of monetizing that so you can enjoy the retirement they desire. Succession planning can seem daunting if you haven’t thought about it before. I suggest reading our series of articles as a good starting place.

It’s also important to talk to your spouse or other family members about retirement: where you want to go, what you want to do, etc. A solid foundation of communication is the basis for an enjoyable retirement. Ask yourself and your loved ones the hard questions.

Given increased life expectancies, it’s more important than ever to plan properly for a secure and happy retirement. Don’t get so wrapped up in the day-to-day challenge of running your business that you lose sight of your own needs and responsibilities. Your family and loved ones deserve as much!

If you need advice on bringing your personal financial picture into sharper focus, contact Tom Sponsel at (317) 608-6691 or email [email protected].

Sponsel CPA Group expanding office

Sponsel CPA Group has renewed its lease at Capital Center North Tower, and is currently undergoing an expansion and renovation to its office space.

The company will increase its square footage from 11,000 to 16,500 square feet, or 50 percent. When work is completed in September, Sponsel CPA Group will occupy most of the fourth floor of the building. The firm was recognized as one of the fastest-growing accounting companies in the country by Inside Public Accounting in 2013.

“We’ve experienced such tremendous and sustained growth in our staff and client base that it was only a matter of time before we needed to expand our physical space,” said Tom Sponsel, Managing Partner. “We’re very excited about the project, which will include many new upgrades and finishings. The enhancements will benefit not only our clients but our entire team as we grow to serve their expanded needs.”

Client Profile – Milano Inn

The LaGrottes serve as a snapshot of how a striving family can take a single idea and turn it into an enterprise in just a few generations. In their case, quite literally – as a humble Downtown Indianapolis grocer eventually became LaGrotte Enterprises with multiple properties and businesses.

The iconic Milano Inn, a staple in the Holy Rosary-Danish Church Historic District since 1934, serves as their crown jewel and flagship. The LaGrottes didn’t establish the Italian restaurant on South College Avenue – that was another family, the Madaffaris. But they’ve owned and operated it for the past 35 years, carrying on the same welcoming traditions and authentic cuisine that first attracted working-class immigrant families during the Great Depression and post-war boom.

Sisters Gina and Tina LaGrotte, the third generation and current leadership, began their apprenticeship at Angelo’s, the grocery store right next to the Milano Inn owned by their grandfather. After school they would stock shelves, work the register, etc.

“That’s primarily where we began, working as kids while learning how to run a business,” Gina said.

Their father Leo Michael assembled other operations to support the existing ones, such as a meat processing plant to supply the Milano Inn and Angelo’s with fresh product. Other non-related businesses were added over the years as opportunities presented themselves, such as a hair salon.

Eventually, LaGrotte Enterprises owned most of the block surrounding the Milano Inn. As nearby neighborhoods like Fountain Square to the south and Lockerbie Square to the north became hot properties, their company’s reputation flourished.

But change requires adapting to the times. When their father grew ill and could no longer manage their growing empire – which by then included the Village Plaza retail strip center on south Meridian – Gina and her sister made the decision to pull back. Some businesses were sold off, including the hair salon to a family friend and the meat plant. Leo Michael passed away in 2007.

Now LaGrotte Enterprises is looking beyond building businesses to helping build up an entire neighborhood. They recently acquired a nearby paint store, and sold nearly three acres of land across the street from the Milano Inn to a developer who is planning to construct chic apartments.

Why just settle for bringing customers to your business, they figure, when you can turn them into neighbors?

“It will do nothing but help the Milano Inn and other businesses. We’re looking forward to creating more of a neighborhood feel,” Gina said. “This quadrant, Fountain Square and our area, is growing like crazy. It’s close to Downtown and has easy access to the interstate. We’re thinking more people will move into the neighborhood and it will just get better and better.”

As part of their ambitious plans, LaGrotte Enterprises hired Sponsel CPA Group about a year ago to help provide the vision and financial strategy. Gina she has felt very comfortable working with the Sponsel team, including Tom Sponsel and Nick Hopkins. Beyond standard CPA functions, she said they have helped with strategic planning, coaching and educating some of their key leaders.

“They’ve done a lot of work for us, and gone above and beyond what we would have expected them to do on a professional scale, and also on a personal scale,” she said. “They’ve been crucial in helping us with streamlining our businesses and making sure Tina and I are making sound decisions as to financing in the family business.”

Spring Fever: A Good Time to Hit the Refresh Button

As we finally – and thankfully! – emerge from the winter doldrums, now is a good time to hit the “refresh button” on your operational planning for the year.

Believe it or not, with the arrival of spring the first fiscal quarter of 2015 is almost in the books. So you can use the track record experienced so far to evaluate how your business is doing against various benchmarks.

The best place to start is with the company’s own annual budget. Hopefully a detailed, comprehensive budget has already been prepared for the year. (If not, it’s not too late to start.) Look at it honestly, and see how the business is performing against forecasted revenue, expenditures and operations.

The benefit of assessing the budget more than once a year is that it allows you to make comparisons, identify problems and take corrective actions before things get too far off track. Quarterly is a good basis to start, since you can compare to the previous trailing quarter, the same quarter from the previous year, and so on.

It’s also smart to compare your business to similar ones in the same industry, both in your region and nationally. Our clients are often surprised with the amount of data we can capture through various resources. With the economy gradually improving, these comparisons provide a picture of the marketplace. So not only can we measure how well a company is doing according to their own budgetary plans, but also compare their results to the overall competitive environment.

Spring is also a good time to address operational challenges that perhaps have been pushed back in favor of more pressing concerns. This includes contemplating personnel changes, altering the functional responsibilities of various team members, and a renewed focus on coaching more junior employees. If you haven’t made a set of New Year’s resolutions for your business, here is a second chance to do so while 2015 is still young.

If you find that things aren’t going according to plan, use this opportunity to institute better budgeting and monitoring, see what cost controls can be implemented or think about gaining better control of management of the sales function. If you feel like some of your own business skills are lacking in certain areas, consider seeking training opportunities to enhance your capabilities.

With the weather warming up and people’s spirits feeling refreshed, use the more positive attitude that comes with “spring fever” to regroup your company’s goals. If you’re taking a spring break trip, come back with a rejuvenated outlook about ways to make 2015 the awesome year you hoped it would be.

If we can assist you with any business planning issues, please contact Tom Sponsel at (317) 608-6691 or email [email protected].

Succession Planning: Keys to Post-Career Happiness

(Part 6 of 6)

In our previous article on succession planning, we talked about how to invest the proceeds from the sale of a business. In this final installment in the series, let’s discuss the keys to a happy post-career life.

It’s probably not surprising that people who own or run a company tend to be hard-charging, goal-oriented folks who thrive on staying in the thick of things. They’re usually type-A personalities who enjoyed the feeling of running a business and having people report to them on a daily basis.

As such, they often experience the biggest challenges in transitioning to retirement or other post-sale undertakings. They’ve spent so much of their lives striving for success that they’ve never really given serious thought to what they will do when they retire. They lose their sense of relevance.

Much of the time it comes down to sheer boredom. Former business owners may find themselves getting their newspaper in the morning, drinking their coffee, walking the dog – and by 10 a.m. they have no idea what to do with the rest of their day. They miss that sense of people coming to them for their opinion and leadership, and it affects their psyche. They wonder, “Am I still a valuable person?”

At Sponsel CPA Group, we have known clients who eventually sought professional counseling for their post-sale blues.

In my experience, those who find the most post-career happiness are those who find a replacement for that sense of purpose they had when they owned a company. They find something that brings them fulfillment and pursue that with the same zeal they had for business.

It can be a hobby, working with charitable organizations, or anything else they’re passionate about. The key is to recognize this stage of life as being the start of a new chapter rather than the end of an old one.

This could take the form of actually creating a new business. For example, the man who loved tinkering with old cars and ended up opening a car restoration shop. Or it could be volunteering with a local non-profit whose civic philosophy aligns with your own. Many business owners have gone on to be fine executives of not-for-profit groups.

As you’re starting the succession planning process, start thinking about the activities you do outside of work that make you feel really good about what you’re doing. These bring you joy, a sense of purpose and satisfaction. Once you’ve figured out what they are, talk to people who spend most of their time at those endeavors to see if there’s a way you can get involved.

During this stage, don’t neglect to speak with your family. Any major life changes you make will also impact them and your relationships with them.

Some post-sale “retirees” find themselves busier than they ever were when running their company. Others are soaking up a life of well-earned leisure. Most fall somewhere in between.

In general, those who have made the succession transition most easily went about it in a very deliberate way. They had a concept of their specialized interests and talents, and leveraged them for happiness in the next stage of life.

If we can assist you with any succession planning issues, please contact Tom Sponsel at (317) 608-6691 or email [email protected].

Collaborative Law: An Alternative Approach to Divorce

Divorce can obviously be a very painful transition in anyone’s life — not only from an emotional and family perspective but also logistically, legally and fiscally. It is not unusual for some contentious divorces to take three to five years to complete, mentally and financially draining the estranged spouses, and dragging out the process when what they most desire is to get on with their lives.

Fortunately, a new area of practice has emerged that aims to make divorce more amicable, quicker and less costly. Collaborative Law combines the skills of trained attorneys, financial and mental health professionals who come together with the stated goal of rendering the legal separation — including property settlement, child custody and support needs — as painless as possible.

In some cases, divorces governed by collaborative law are completed with just a handful of meetings after only a few months.

In collaborative law, both parties enter an agreement stating that they do not want to go to court. The spouses declare their desire to maintain mutual respect for one another. Obviously, there must be a high level of trust between the separating spouses — including truth about the marital assets — in order for this process to work.

Each spouse retains their own attorney trained in collaborative law, and financial and mental health professionals are selected from an agreed-upon list of qualified individuals. If the collaborative law engagement fails, it is stipulated in the contract that the couple has to start the legal process over with a completely new set of professionals, in order to avoid conflicts of interest.

From an accounting perspective, our role in a collaborative law divorce includes tasks like valuing business interests, preparing the marital balance sheet, determining the potential incomes of the parents and calculating child support payments. (The attorneys are there to advocate on behalf of their respective clients’ needs and desires, and mental health professionals help them traverse the mental and emotionally minefield involved with children, mothers and fathers.)

The benefits for the separating couple are obvious — a less contentious divorce that generally costs far less and happens much quicker than a judicial proceeding. And they get to be directly involved in every step of the process, splitting the marital assets and any support payments by mutual agreement rather than having a judge make that determination for them.

Aside from the reduced costs and time involved, getting to make your own decisions is perhaps the most attractive feature for couples going through this very difficult task. A court divorce can leave both people feeling stripped and laid bare, while a collaborative law process allows them to feel safe, dignified and respected by their former spouses. It is important for the children to observe their divorced parents demonstrating mutual respect and civility for the long-term emotional welfare of those children.

If you are interested in consulting about a collaborative law engagement, please contact Tom Sponsel at (317) 608-6691 or [email protected].

Sponsel CPA Group named INSIDE Public Accounting All-Star Firm

Sponsel CPA Group has been named a 2013 All-Star Firm, according to INSIDE Public Accounting (IPA), a national publication serving the accounting profession.

These firms, selected solely on their performance in specific areas, are compared with more than 500 participating firms in the IPA Annual Survey and Analysis of Firms.

“We explore profitability from several perspectives to provide a view of how firms at the top of the profession are performing,” says Kelly Platt, principal of the Platt Group and managing editor of INSIDE Public Accounting. “The IPA All-Star Firms are the best at what they do, be it health care consulting, litigation support, employee benefits or another specialty niche.”

The Indianapolis-based firm was ranked as the Top (#1) Business Valuation firm in growth among firms with gross revenue under $5 million. IPA also ranked Sponsel CPA Group #2 nationally as the Fastest Growing Firm in the same class.

“Our entire team is humbled by this tremendous honor. We work to serve our clients and that will always be our main focus. But being recognized within the accounting profession is validation of how much our labors are benefitting our clients,” Managing Partner Tom Sponsel said.

The following 2013 IPA All-Star Firms are named in the October issue of IPA:

Top 10 Fastest-Growing Overall
Top 5 Fastest-Growing By Region
Top Audit & Accounting Firms
Top Tax Firms
Top Business Valuation Firms
Top Computer Consulting Firms
Top Employee Benefit Firms
Top Fee-Based Financial Services Firms
Top Commission-Based Financial Services Firms
Top Health Care Consulting Firms
Top Human Resource Consulting Firms
Top Litigation Support Firms
Top Merger & Acquisition Firms
Top 10 Training Firms
Most Admired Peers
Top 10 Most Recommended Consultants

Thomas Sponsel tapped by Indy Chamber

Thomas J. Sponsel, Managing Partner of the Sponsel CPA Group, has been appointed to the Greater Indianapolis Chamber of Commerce Membership Marketing Council.

As a member of the Membership Marketing Council, Sponsel will work to explore, develop and implement programs that increase Chamber membership sales and retention, as well as produce non-dues revenue and market chamber products, programs and services to meet the needs of current and prospective members.

Sponsel has more than 36 years of experience in the accounting profession and is active in several local civic groups.

“I look forward to working with the council in helping the Indy Chamber continue to grow and flourish,” Sponsel said. “Encouraging sustainable, quality business is central to maintaining Indianapolis’ reputation as a terrific place for people to live and prosper.”

Thomas Sponsel named to Tindley board

Thomas J. Sponsel, Managing Partner of the Sponsel CPA Group, has been named to the Charles A. Tindley Accelerated School Board of Directors.

The Indianapolis charter school for grades 6-12 boasts a laser-like focus on helping students gain admittance to a highly-selective college or university. Created by EdPower, an educational services nonprofit, Tindley is the first accelerated school in the state of Indiana. Over its eight years of existence, the school’s matriculation rate to four-year universities is 100 percent.

Sponsel also serves as Chairman of the Finance Committee, helping steward the school’s financial stability. He has more than 36 years of experience in the accounting profession and is active in community organizations.

“I am deeply humbled and honored to serve the Tindley School in any way I can,” Sponsel said. “Their mission is vital to our community and the prospects of the next generation of business leaders. Tindley deserves the support of everyone who cares about better education for local children.”

Become an Activist for your Company in 2012!

Part of our Personal Leadership Series

By Thomas J. Sponsel, Managing Partner

As January comes and goes, so do New Year’s Resolutions. Such resolutions are often made to be broken, if procrastination hasn’t already postponed making a commitment. A 2007 study by the University of Bristol found that 88 percent of all resolutions end in failure.

Most of us do not achieve what we desire for the following reasons:

Lack of a Commitment to a Plan of ACTION
Lack of Support in collaborating with others
Poor Execution
Poor Attitude
Lack of Willingness to make short-term sacrifice for Long Term Benefit

Resolve to make 2012 the year you become an activist for your company. This includes making your personal role in the company more fulfilling, making your company better with suggestions for improvement in both planning and execution, and finding a sense of satisfaction and fulfillment in your personal life.

This may sound like a utopia, but most of us become frustrated because we do not commit to an active role in making all this happen.

You can enhance your value to your company and improve job satisfaction through the following steps:

Together with your supervisor, identify three to five areas you should improve on in 2012.
Seek your supervisor’s support in helping you achieve your goals; solicit feedback and request any necessary resources.
Clearly understand how your role interrelates with other team members in delivering products and services.
Understand your company’s corporate goals for 2012 and the action steps management has laid out to achieve them.
Offer suggestions for making your company better.
Be committed to life-long learning and continuous improvement.
Celebrate your successes and evaluate your failures; use both to establish your next challenges.
Execute your assigned role, and hold others accountable to their roles.
Read voraciously on a variety of topics to expand your knowledge and challenge the status quo.

Many of us get dragged down because we approach our responsibilities as if we were bystanders in our own lives – our jobs, our families and personal relationships. There will be many challenges in life, and how we react to those adverse experiences will determine what we are able to accomplish and how other people regard us.

Take English poet William Ernest Henley. After progressive tuberculosis of the bone claimed one of his legs, and threatened to take the other, he wrote “Invictus,” which ends with these immortal words:

I am the master of my fate:
I am the captain of my soul.

Even if you are usually a follower or a doer rather than a leader, you must become a leader in your own realm – because no one else is going to do it for you!

Within each of our companies, we are part of a team of individuals with a diverse array of talents. When combined together correctly, the whole is much more effective than the sum of its parts.

The stronger we become individually, and the better we interact with co-workers, the stronger we make the company. A stronger company will deliver better customer service and higher quality products, have a satisfied workforce and become more successful. And we all want to be a part of success!

The key to this success starts with that person you see in the mirror every morning. If you commit to becoming an activist and not a bystander, you will be much happier – and your co-workers, spouse and family will thank you for your efforts.

Resolve to make 2012 a better year than the past, and start today to make it happen!

Inside Indiana Business Reports On Better Ways to Provide Accounting Services

As some of you may have seen over the weekend, I was a guest on Gerry Dick’s Inside Indiana Business TV show. First of all, let me say “thank you” to Gerry and his team for inviting me to be a guest.

Gerry asked me why I am not focused on retirement, why after over three decades in the business did I choose to launch a new company. The answer was quite simple – I knew there was a better and different way to provide accounting services. Please view the entire video and my interview with Gerry Dick.

Sponsel CPA Group, located in downtown Indianapolis, is one of the region’s most experienced full service accounting firms. Providing much more than traditional accounting services, Sponsel CPA Group specializes in Entrepreneurial Services, Auditing and Assurance, Valuation and Litigation, Mergers and Acquisitions, Tax Services, Financial Planning/Wealth Management , Employee Benefit Plan Administration and Technology Services.

Quickly becoming one of Indianapolis’ Top, Full-Service Accounting Firms

Our recent open house provided a great re-enforcement of our decision to launch Sponsel CPA Group less than three months ago. With our Gateway Plaza office filled with more than 200 clients, vendors and supporters to help us celebrate our new endeavor, my colleagues and I appreciated the numerous well wishes we received throughout the evening.

In a very short time, we have established a new brand, launched a new Web site, hired more than 20 seasoned accounting professionals … we are well on our way to becoming one of Indianapolis’ top, full-service accounting firms.

When we started Sponsel CPA Group, we were committed to creating a culture that encouraged and rewarded hard work, smart thinking and dedication to client services. That commitment has only grown during the course of these last few months and, judging by the turnout at our open house, we are on the right track.

Best in Client Satisfaction for Indianapolis Wealth Manager

Tom Sponsel’s strategic focus on both client and employee value and satisfaction was recognized recently when he was named one of the “2009 Five Star Wealth Managers: Best in Client Satisfaction” by Indianapolis Monthly Magazine.

The award places Tom among an elite group of Indianapolis accountants and CPAs. The Five Star award is based on independently verified, customer satisfaction. Indianapolis wealth managers are rated by customers and financial professionals based on service, integrity, knowledge, communications, value, meeting financial objectives, post-sale service, quality of recommendations and overall satisfaction. In Indianapolis, only the top 7 percent of professionals earn this award.

For a complete version of this article, click here.