Owning your own business comes with many wonderful perks. You’re guaranteed to love your boss, you take on the risk but you get to reap the rewards, and most important to many entrepreneurs, you get to do what you want to do.
But, some business owners are so focused on the present state of their business, that they completely forget to consider their future. And not just any part of their future, I’m talking about the foundation in which their future happiness and survival depend. I’m talking about retirement planning.
As a business owner, are you foregoing saving for retirement?
It’s not uncommon for business owners to forego saving for retirement. Many choose to put the money they’d ordinarily save back into their business. However, this doesn’t necessarily mean that they won’t have any money for retirement. Selling your business can certainly make up for not saving. Business owners just need to keep in mind that the sale of their business will very likely be the largest contribution to their retirement fund. Which puts a lot of pressure on selling your business.
When it comes to retirement planning, planning ahead is key – especially if you’re banking on the sale of your business carrying you through retirement.
If this is the situation you’re currently in, consider these three questions.
- Why should I sell my business?
- When should I sell my business?
- What will I do after I sell my business?
If you don’t have the answers quite yet, I’ll give you a jumping off point.
You should sell your business to achieve wealth and freedom while you’re still young enough to enjoy it.
You should sell your business when you feel you’ve reached your definition of financial independence. And once it’s sold? You’re still the same person, just in a new chapter of life! Set new goals, stay focused and engaged and continue to live the life you love and so much deserve!
Who should you have on your ‘business selling’ team?
You shouldn’t be solely responsible for the sale of your business. It is important to assemble an advisory team that can lead you through the nitty gritty of the sale. This will ensure you’re getting what your business is worth, and as a bonus they can help you with retirement planning! They’ll guide you through allocating those funds appropriately to get you through retirement.
It’s important to consider the expertise of who is on your team.
Establishing a relationship and friendship with a financial advisor that you trust, who specializes in working with and managing retirement funds for business owners will be critical when you plan on selling. A financial advisor that focuses on business owners will understand that the sale of your business is likely the biggest contribution to your retirement fund. Through experience and in establishing an excellent rapport, they will have an understanding of what exactly will make the most sense for you and your future, and they’ll be able to connect you with all of the individuals you need to support you through the sale of your business. These people include transaction attorneys, investment bankers and business brokers, CPAs, and existing banks.
If retirement planning hasn’t been at the forefront of your mind, that’s okay. As a business owner you’re juggling lots of responsibilities, and sometimes focusing on the present is priority. To make things easier, leave the retirement planning to me!
If you know you don’t have the time to dedicate to retirement planning now, but don’t want to regret that in the future, let’s meet! Our first meeting is a complimentary, no-risk ‘meet and greet’ to ensure you feel completely comfortable with continuing the conversation about your future!