Business Management for the Independent Business Owner

Business Management for the Independent Business Owner

The Business Plan overview, I have been planning to write this blog for some time. My difficulty has been deciding where to start and where to go with this. You can relate it to which came first, the chicken or the egg? For those of us in this community, what we need to understand is Compumatrix, the chicken or the egg?

Either way, this business plan begins with Compumatrix. This is the focal point. Wherever we go from here, we will circle back home to Compumatrix

What is your overall plan? For the majority of the people reading this, your overall plan might be a one-stop right here at Compumatrix. For many of us, we are going to use Compumatrix as a springboard to launch other business endeavors. Henry James Bayanat, our founder, made a statement years ago that he hoped we would take some of our funds and start other businesses. In a late-night conversation, while clarifying some administrative details, Henry James Bayanat instilled in me a burning desire to build a Compumatrix Village. 

I cannot determine what your goals or business plans might be, but I can share some of mine with you. This will not be a complete plan of action. It is a collection of ideas that I am pulling together as a working business model. Every model has to start somewhere, and for me, that is Compumatrix.

What are the Components, a Short List

  1. Compumatrix
  2. Business Team
  3. Business Entities
  4. Life Insurance
  5. PEO
  6. Investment Portfolio

As I stated, this is a shortlist! There are a lot of active pieces on this list. The number one component of this list we should all understand is Compumatrix. The next two segments on the list are “should have” parts for everyone’s business plan. Component number 4 is a gateway component for this plan. (See the section below on What is a BOLI. Then read the article titled Cash Flow Life Insurance.)

I will give you some insight into what I am thinking. This won’t give you a complete business plan. Your business plan has to be designed around your needs.

What is a BOLI

You will run across some terminology that is specific to the particular industry. For example, what is a BOLI? This stands for Bank-Owned Life Insurance. This is a specific type of life insurance product. This product was designed with the needs of the banking industry in mind. This is a Whole Life Insurance product written with certain specifications in mind. This is not your grandpa’s Life Insurance policy!

Cash Flow Life Insurance

In the late 1970s, I read an article about how the rich were using Life Insurance to protect and preserve their wealth. This allowed them to pass their wealth down to the next generation safely and with limiting tax consequences. I could not find this information again until I researched someone’s information on FaceBook. 

Nelson Nash created “The Infinite Banking Concept.” Because of Nelson, many people have been introduced to the concept of cash flow life insurance. From the list of components above, this is the Life Insurance product that is referenced in this business model. As mentioned above, it is a gateway component. This product or its structure is known by many names. It is called Bank on Yourself, Becoming Your Own Bank, and recently, the And Asset.

The reason I call it the gateway component is because of some of these concepts. This is an insurance product that when designed properly, can flow money in 2 directions. The obvious direction is the money going into the policy to fund it. The not so obvious is money coming out of the policy in the form of a loan. 

There is too much to explain regarding just the loan provisions alone. Explaining this product would take an entire blog, and I wouldn’t have time to write it in its entirety. Let it suffice to say this is a major component of the entire business plan.

We have a few of these policies currently. However, after studying this in great detail over the last year or two, we will be doing 1035 Exchanges with these policies to fit the criteria that I find more appealing. 

There are 2 ways to withdraw money from these life insurance products without it being a taxable event. The first is to take out a loan against the cash value of the policy. The second way, and less desirable is when the insured passes and the death benefit is paid. 

The Investment Vehicle

Everyone has an idea what their best-kept secret to investing is! Mine is syndicaties van onroerend goed. (real estate syndications) I just had to do that!

My business plan is to fund the Life Insurance product for maximum cash value. When the Investment is identified, a policy loan against the Life Insurance policy would be requested. These policies are used by investors to fund Real Estate, Stock Market Investing, and a variety of other investments. 

What the Investment Vehicle does not matter as long as the overall plan is to grow that investment. The loans against the Life Insurance policy are very flexible. Paying it back can be optional. This is a critical design of the policy and should not be overlooked.

Business Team, Business Entities and PEO

I am putting these components in one section. Who is on your Business Team? What components are you going to look into so you have a smooth operating business plan? 

Who is on your business team? I am about to get a Real Education in the business world. I have been investigating legal representatives and advisors. I have started several conversations to see what they can provide. One of your closest allies has to be your Tax Accountant. Who else do you need on your team? 

I am going back to the insurance team in a minute or two. Before I do, I want to address the PEO. This stands for Professional Employment Organization. Most small businesses take care of these duties “in-house.” They may have one person that is a part-time bookkeeper or hand some of these duties over to their accounting office. 

For me to sufficiently convey the need for PEO services in my business plan, I will use this statement. How big do you desire to build your business? I do not wish to build this business into a big business. However, I do not desire the men in the white coats to come and take me away! (Kid you NOT! You can go crazy!) 

The other piece of this is derived from this statement. Build on your strengths, and outsource your weaknesses! In other words, don’t try to be an expert in all aspects of your business. Build a great business team, and you will have a great business.

When putting this all together, the idea of business entities will come up. This is an exhaustive study in itself. I have had 3 business entities (LLC’s) over the years but closed one down. To initiate my business plan will take structuring 3 (more) business entities. There will be an LLC that will work with Compumatrix. Then there will be a C corporation that will manage most of the operations. Finally, there will be the first working LLC. My plan includes 11-12 of these working LLC’s when finalized plus 2 Non-profit organizations. I will discuss more the function of the working LLC’s in conjunction with the discussion on insurance for the business plan.

Now, we can get back to the insurance aspect of your business plan. 

Insurance for your Business Plan

An entire blog should be written for this subject. For that matter, an entire blog should be written for each insurance product. We are going to jump right past the liability insurance products, property insurance, and vehicle insurance. We are going to stay focussed on cash flowing life insurance

I have studied information from everyone I can regarding this product. I have narrowed the field down to 3 companies that I intend to work with. This is not 3 insurance companies but 3 groups of insurers that promote this product. These guys have a handful of insurance companies they work with that allow the policy to be written to these specifications. I have had conversations with all three of these groups.

These products are very specific, and most insurance agents do not like them (less commission). They are integral to the operation of my business plan as they present a financial gateway.

As mentioned above, the working LLC works with the insurance product. Just the same as the BOLI product discussed earlier, the product we will look at is referred to as a key employee insurance product. This policy is taken out on the employee that will be hired to work for the LLC. 

The C corporation will fund the LLC by buying this cash flowing life insurance or key employee insurance product. This policy is bought on the employee that will work on behalf of the LLC. A policy loan will be requested from the policy. The funds from the loan will be used to purchase investments. The investments will pay back the loan.


There is a lot that can be written here, and I debated over the last few weeks how much of this to write. At first, I was going to write an outline then write separate blogs for separate sections. This was going to prove to be difficult as the components interface with each other. 

The reader needs sufficient access to enough information to allow them the opportunity and desire for further investigation. I would be foolish to believe our readers would jump into an aspect of what I am trying to convey here without performing their due diligence. 

Where we start, we will end. We have now circled back around to where all of this began. Compumatrix is the chicken and the egg!

About the author

Stephen Sampson is among the founding members of the Compumatrix Bloggers' Network and writes various topics about life and business.


  1. Wow Stephen I have been waiting for your post from bits and pieces of references from past blog posts! You have put so much time and investigation into your business plan. I just stumbled upon Nelson Nash’s teachings and even with your brief descriptions above, I see I missed the true meaning of some of his information, and now I can see the value of this. For us, we need to set up a business team, as business could grow way beyond me, the “in house” person! …. and yes I can see glimpses of the crazy part! With extra funds, I am thinking people will want to do more “helping charities”, etc. In that regard, have you also studied foundations? another blog post, hint, hint!

  2. I like your business plan, yes LLC I think is the only way to go it protects your business and the LLC will protect you as well from law suits ect… I also thought the insurance is very interesting with a cash flow I did not know that I will have to do more research in that area. I know I will be giving to charity I have several I give to and now they will get a lot more…lol

  3. Your guess about the LLCs? You bet! What did Compumatrix do recently? The more you know, the safer you become. This is why Compumatrix is now a Wyoming Corporation. Wyoming has become one of the most crypto-friendly states in the country. The LLCs we intend to set up will be from Wyoming as well.

  4. Thank you Steven for doing this blog. I had come across Nelson Nash a few years ago through an insurance friend and I always kept this information in the back of my mind and it was enlightening to have it rehashed by you here. Thank you for refreshing me on this. I bet it took a lot of head scratching on your part as to how to go about putting this blog together. lol.

  5. what a great read Sir — you do not fail to impress with your detail and information –it is so much to take in and I do hope you will expound and go farther in detail with each of the aspects you outlined in this blog — and trust me I will be reading this several times over next few weeks to gather all that is here — truly thank you Stephen —

  6. What a great blog Stephen! Great ideas! I have not yet defined what I really intend to do when our values ​​are released, but I am sure of one thing: in addition to investments, I want to help some philanthropic entity here in Brazil that takes care of children and the elderly in situations of vulnerability.

  7. G A P Grab A Pen
    The old saying in Network Marketing was to “GAP” them. In other words, this is often used to give someone information about your business or a presentation.

    The reason I am talking about GAP is to display the importance of “writing it down.” About a month ago, I had a premature conversation with one of the people I have referenced in the blog. I had to bring a conversation into the mix that wasn’t related. Since I was making the call, I decided to start the conversation on my business plan as well. I was all over the place because I didn’t have my information in a written format.

    Be sure to write out your plans. Even if you are early and indecisive, you can always revise the plans. The plans I have written in the last couple of weeks looks very different than the plans I wrote a year ago. My newer plans are so much more comprehensive.

    Do not underestimate your goals. This is why the “Team” is important. Remember to concentrate your energy on enhancing your strengths and outsource your weaknesses.

  8. I don’t understand your blog fully but looks like you got your plans laid out for the future. I am one of those who Compumatrix is quite enough for me to build and expand on. I really have no desire to build a village or get into insurance, etc. But hey, if that is what you want to do then I support your choice!!

  9. To manage one’s own business successfully requires a very good plan, to start with. Writing down our plans is a good start, so that we can read them and change them as required. Cryptocurrency and Compumatrix go hand in hand and that is the way I would like to go. Specialize in it and do it well. Keep abreast of all changes and learn the business, from day to day. To create a solid foundation and a steady income, for a secure future.

  10. Stephen ,a very detailed and informative blog. I surely will be researching into various ideas you put forth and am sure I have a long and hard way to go and find all about what you have imparted in this excellent post.It will take me a long time to figure out how to implement your thoughts and ideas but will get there eventually.Thanks a lot for taking this time to write this very nice blog.

  11. most definitely the start to any success is the Plan and in my mind writing that plan and its steps down is great place to start — and taking time before you start to make sure what ever it is ?? is what YOU want and your Heart has got to be all in — and reading this blog n replies is a good place to narrow down some wide angles but also can tell all that a Pen is very handy to me and my legal pad — great stuff with no GAPs —

  12. This is like a library. You go in, grab the books you are interested in and begin to read. The rest of the books, you leave on the shelves. I have literally been studying this stuff for years. If this level of business is something you are seeking, my advice is to keep learning. For many of us here, Compumatrix will suffice and that is BIG!

    The biggest part of all that I have shared here is this. Who will you have on your team?

  13. You have a great mind for a business plan. I try to read and follow it, but I confess that I couldn’t, I guess my mind is more simple and my plan is also simple.
    But you have put all your effort into planning each detail, for you wish to reach your goals.
    I guess my plan is first to help myself and when I’m set and going, I can turn in and help others.

  14. definitely has a great business mind and great directions to help anyone grow and become very self sufficient in their thoughts towards a winning business model — and also as you read this blog more than once is good reading — do not make it more complex than it actually is — Simple plans Simple thoughts and then you keep that biz plan not just true but simple also — success is just around the next corner — Simply speaking —

  15. Owning ones own business is easy, making that business successful is a struggle.. and yes it takes work , Lots of work. I , at time run two businesses of my own and was book keeper for two other businesses .. I was hard , a huge learning curve and lots to learn. Securing bank loans was the hardest , See being a woman , banks did not want to load to you. Strange , once a woman has their own business , they work hard and careful how money is spent .. Start up funds hard to come by.. I have a lot of experience Compumatrix is going to be a easy business to get into .. Lots of good support , all the way around.

  16. This blog post was great because it showed me that we can be completely self sufficient. Compumatrix will provide us with the tools to sustain ourselves away from the typical norm of people. Being a young person, I hate knowing the fact that most people live their entire lives just trying to get by living paycheck to paycheck. I never want that life for myself or my family. I will work myself to extremes trying to become an independent business owner before conforming to social norms of debt and hating a job.

    1. Mary, I noticed since this comment from you, you have posted your blog about your tortoise. I hope you stay encouraged to continue blogging. Additionally, keep in mind that business ownership comes with responsibilities and one of those is business management. It appears you have a lot of skills. Having 15 college credits under your belt while being a senior in High School is incredible. Keep up the great work and I look forward to reading more from you.

  17. Very instructive post Stephen! LLCs seem to be the way to go but there will be other tools that will be of great help too. We must research and take into consideration the tools that will be helpful to us according to our needs, realities, and inspirations (including even some philanthropy). Compumatrix will the driving force behind all this new learning and assembly.

  18. Stephen, that’s a very useful article and well written. True, a Business Plan is the skeleton or the road map of a business venture. It thus helps to articulate all the strategies required for starting up a business. I wish you all the best in your good plans in the “Insurance Business”. Exactly, in the Business Industry there are millions of businesses plans that can be implemented. But, some of us we are barred with limited capital resources. But, the future is so bright.

  19. I agree with all the comments about having a business plan and making allowances for things going forward but and it is a big but we have to be cognisant of the foibles of customers. Not all are as honest as one would wish. We once had an hotel and a customer asked if we could get him some fresh lobster for lunch. We duly obliged went to the fishmonger and bought lobsters. We served the man his lunch which he ate. He then refused to pay the bill claiming the lobsters had obviuosly been frozen He walked out never to be seen again whilst we had to swallow the bill. So beware all customers are not what they seem.
    I feel we should applaud the efforts of the BOD to weed out the bad apples from CNI and give us an honest way forward when CDAP finally comes out of its chrysalis form.

  20. Stephen, you have opened my eyes to some useful strategies. You speak of doing our due diligence, and I will undoubtedly be applying and studying what you say. There is so much to learn about Compumatrix and Networks International Incorporated.
    I look forward to you posting more on this subject of cash flowing Life Insurance.

  21. Great blog Stephen! Great business plan, a very good business strategy is sure to grow the business, compumatrix and cryptocurrencies is an honest business, let us be honest with the company and think of others in the future besides ourselves.

  22. this is such great read and so helpful in the overall plan of biz success this is integral in the learning process — there has been a few other great blog posting on Biz planning and how to keep the plan working and make changes as needed — but in the reality of any plan Simple is best and stay simple and also stay guarded as you succeed — great stuff SS

  23. It is good that you have developed a plan to succeed. According to sources, writing a business plan is the best way—other than going out and doing it—to test whether an idea for starting a business is feasible. In this sense, the business plan is your safety net. If working through a business plan reveals that your business idea is untenable, it will save you a great deal of time and money.

  24. The good thing about the business plan is that it can be changed just as the needs of the business may change. Changes implemented to businesses without a good plan may otherwise be like walking around in the dark and bumping into things.

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