Retirement as a business owner is something that will likely sneak up on you because business owners are so focused on the here and now for management success.
Although you have undoubtedly considered the prospect of retirement in coming years, it might simply seem to be a thought for later.
So how can you tell when that ‘later’ finally arrives? How can you ensure your retirement doesn’t spell the end for your business?
Even if you don’t plan on retiring for some time, since at least a third of business owners don’t have a retirement plan at all, it is wise to put a plan in place for this inevitability so that you can make decisions for your future.
Consider your exit plans
You have options. Are you looking to pass the business over to an existing employee, a family member or perhaps sell it to an investment firm? One of the fastest methods is liquidation, although this will offer you the lowest returns on investments.
Consider whether you still want to have a stake in the company, to still be involved in some decision making processes or you wish to entirely wash your hands of the business and potentially start something afresh in retirement.
Make purposeful changes and monetise data
Digging into your data can help find opportunities within your present business model to shift your business up a gear. There is likely a lot of information available that you are not using. If not, consider engaging your customers and suppliers through questionnaires to obtain necessary information.
From here, you can begin establishing retirement plans with boosted profits available. By understanding your retirement goals and working on allowing your business to help you to achieve these, you can be more assured of yourself as you step into this new phase.
Hire a professional
To ensure you are making the most of all of your investments, keeping your options open and diversified and allowing your business to work for you instead of holding you back, you will enable a smoother transition into retirement and you will be better prepared to acknowledge when that time has come.
A financial advisor and accountant such as one of the experienced team members here at YBM have the knowledge on hand to provide you with up to date and relevant information that can help you to make these life changing decisions confidently.
Get in touch with us today to see how you can best plan for your retirement as a business owner.
Orange office: 02 6362 1533
Molong office: 02 6366 8049