Fact – Most small business owners don’t make nearly enough money from the sale of their business to survive the thirty to forty years they may live after the sale. This must be realistically considered in your business exit strategy or your business succession plan. You must start saving for retirement early and consistently. Consider a tax assisted retirement savings program. Another business exit strategy or business succession plan is to buy the real estate where your business is located.
In all events find a financial planner you trust and start today. There is nothing worse than being physically or mentally exhausted and having to leave the business but resisting it because your business succession and retirement plan did not generate the necessary downstream financial resources.
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Many owners we work with intend to augment their savings by seeking employment in the future. They just want to get the weight of owning a business off their shoulders. If the income expectations and time requirements are realistic this is a good component of the business exit strategy or business succession plan. Limited future employment is becoming a normal component of many business owners’ strategic plans.
If you are not in a position to properly develop these types of business plans yourself meet with a competent financial planner early. Find a way to save. Make it a priority because your future depends on it.
Tip: Every year you should assess your succession plan and exit strategy. This would include updating the buy-sell agreement and related insurances if you have partners, developing a management plan specifying plans during your disability or your death, tracking your outside investments, and working on an exit strategy.
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