So, you work for yourself. Yeah, me, too. We balance a lot of hats, many responsibilities. And we are good at some of what we do, and not all.
One thing we tend to do in invest in our business because we understand it, AND we think we can sell it for our retirement. Let's talk.
No real plan- according to a recent survey by The American College most small business owners don't have a formal plan to achieve their financial objectives. Many have not sought the help of a professional to figure out what they might need and what they have. Some have used pencil and paper to make simple calculations about their futures.
No one to rely upon- As a business owner I like to do things myself. I heard someone on a business show once say, "I've worked for myself so long, I am almost unemployable.' We're a quirky group. But we are smart and we do recognize that we 're experts in our field. Of course that means, other folks might be experts in THEIR respective fields and may be able to help us with their expertise.
When it comes to exit strategies and retirement planning talking to an expert could help you think of things you hadn't considered. You do so much yourself. Retirment is too important to not talk over with someone you trust. The earlier you discuss things the more time you have to plan and adjust what you're doing for a smooth transition later.
Selling the business for retirement- Many business owners plan on selling their businesses for their retirement nest-egg. But we don't always realize the value of the business and sometimes think we can get more than may be realistic.
Many things add up to create your business' valuation. These are some basics to remember. Are you the main person, the 'key employee' who when you're gone there are no sales or no expertise? If the business has to be sold suddenly, you will potentially get less than if you have two to four years to sell. The health of your local economy at the time of sale will impact the sale price. What valuation model do other, similar businesses use to value their business? How much would it cost to start this business from scratch?
Many things go into the sale. You don't want to have worked so well for this long to have things go array. 'Be careful for your retirement and of having all our eggs in one basket.' Get some advice and have a beautiful future!
Marion Syversen, MBA
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