Is Your Business Ready for You to Retire?

    Tracey Clayton

    When developing a succession plan for your business, there are many decisions to make depending on the situation in your company, and your personal and business objectives. Most owners want an easy ownership transfer or the passing of obligations to the younger generation. Additional issues are ensuring business continuity, and establishing retirement income. All these things take time to organize and are not that easy, so it is important to start on time. Here are some ideas on how to make sure your biasness is ready for you to retire.

    Achieve the goals you have set

    This is an important step for any business owner. If you retire before you achieve your latest goal, there will be a feeling of constant regret that you have left things unfinished. So, the first step is to finish what you have started. For example, if you are in the middle of modernizing you company, you should stay until your work is done. Or, if like many modern companies, you have decided to start using more efficient affiliate marketing tools you should stay and pick the fruits of your hard labor as your company grows even further. These are just a few possible goals you might have started. Remember, in order to enjoy your retirement, and be completely stress free, achieving the preset goals is a must.

    Create a retirement plan

    Hopefully you have started saving and planning long time ago. Being over 50 and just starting a retirement plan might be quite difficult. So, the first step is checking your current savings and doing a detailed estimate if that is going to be enough for your retirement. One of the possible solutions is to simply ‘cash out’ and use the money that you get from selling your company to ensure a comfortable retirement. In this case, you need to be aware of the realistic market value of your company.

    On the other hand, if you want to keep the business in the family, you definitely need a bigger savings fund or at least an arrangement regarding company stock ownership. You should also consider doing a age pension income test so as to see if there is room for improvement on your rates.

    Consider Your Other Assets and Investments

    You should be informed as to what income your investments need to produce as part of your retirement plan so that you can adjust those investments accordingly in order for them to meet all your retirement needs. Another option is to work with a financial planner and do a detailed assessment not just of your investments but also of your not business related assets. This way you can have a clear picture of your financial situation before you retire.

    It is always a good idea to have investments and assets that are not tied up with your company, they can serve as additional source of income regardless of whether you decide to sell or keep your business in the family.

    Most entrepreneurs dread retirement, not so much due to the finances but rater due to the fact that they are still full of energy and ideas. However sometimes our body needs rest, and you never know when you might decide to hang your business hat and put on the colorful retirement one. It is important that when you do you leave your business well organized, in good financial state and with your retirement fund all set.