Your doctor might have made you aware of the signs of things like heart attacks and strokes, but do you know the signs that tell you when you need to get out of your business? As you get older and retirement looms large, you’ll find that it is essential for your well-being and that of your company that you know when to cut ties.
Plenty of people recommend that you start planning seriously for your retirement sometime in the ten years before you actually have to do it. This means that you need to think about what kind of money you need to save to live off of and also how much money your business is worth. As businesspeople, we know that knowledge is power, and if you don’t have this knowledge, things are going to go badly.
There are several options open to you when you want to get out of your business. This may mean allowing a family member or friend to buy you out, or it may mean passing ownership on to certain important employees. No matter what you want to do, remember that you should start planning early and that having a decent backup plan is always a good idea.
Plenty of people daydream about retirement, but you need to make it into a solid reality. Life is busy and your business is likely your pride and joy. It occupies you and every day brings a new challenge. The problem is that by the time you get ready to retire, it might be too late to do the kind of planning that you need to do!
This is very much a Baby Boomer trait. Though things have gone well for a series of years, they begin to see the pinch and then they go to a financial expert for help. This is something that may come fairly late in the game, but as I always say, it’s better late than never. It is never too early or too late to start thinking about transferring and selling your business.
When you go to retire, chances are good that you need about 70 percent of your current income to be comfortable. Remember that you are going to need to sell carefully if you want to make sure that your work is going to get the kind recognition it needs. Given that the U. S. Chamber of Commerce states that only around 20 percent of all business sales will be sucessful, you need to have plenty of options available at your fingertips.
Save as much of your gross income as you can. Many people do very well by saving between 20 and 25 percent of their gross income in order to retire successfully.
The truth of the matter is that selling a business is a loaded thing. You never know when people are going to butt heads and what is going to cause a problem right when you are ready to hang up your work gear and take it easy.
When in doubt, call in experts; it can save you time, money and heartbreak in the long run.