Small Business Owners and Planning for Retirement
In today’s New York Times online blog, You’re the Boss, there is a thought-provoking post “Are You Sure You Don’t Want to Retire?” that discusses the plight of older small business owners who are being forced to consider whether or not retirement will be in their future. The author, Barbara Taylor, discusses a recent Gallup poll that reports that 47% of small-business owners may never retire.
She brings up some provocative points to consider and some sound advice if you’re a business owner thinking about your exit strategy.
“If you wait until you have health issues to sell, you may not get the price you’re hoping for. Think about it. Are you really going to fetch the best price when you’re clutching your left arm and keeling over into a mail bin on the loading dock?”
That’s a scary scenario to think about. Taylor goes on to stress how important it is for small business owners to carefully plan their exit to prevent finding themselves in this type of predicament: “Selling your business needs to be viewed as a process, not an event.”
She recommends four steps to start purposefully planning an exit strategy. The first recommendation: “Get a valuation of your business today. Use it as a road map to make changes that will add value for potential buyers.” To see all of her recommendations, click here.
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By: Present Value
Additional Reading:
What’s Your Business Really Worth?
Financial Advisors Urging Business Owners to Know the Value of Their Businesses