Steps Small Business Owners Should Take to Help Fulfill a Successful Retirement
Too often, small business owners spend too much time and energy on building their companies that they neglect their own personal financial futures. They may consider their companies to be their retirement plan and don’t create a plan to turn business success into a successful retirement. There are steps business owners should take to build toward the retirement they deserve.
Create A Retirement Roadmap
Without a documented roadmap, one that goes beyond the hope of selling your business to create your retirement, you could end up pushing back your ability to retire. Delaying retirement until you can adequately sell your business is sometimes not an option. Life is full of surprises and choosing when you retire sometimes is not an option due to disability or health issues. Rather than reacting to what life or the business world throws at you, you need to proactively address these items now. Start by defining when you want to retire and what lifestyle you hope to enjoy. Determine what you need to do to fill the needs of your desired retirement and then hold yourself accountable to take the necessary steps to stay on track toward your desired goal.
Have an Exit Strategy
No matter how long you wish to work and how much you love your business, a clear exit strategy that ensures the longevity of the business and preserves your financial health is paramount. Define your ideal exit strategy. Do you want to sell your business or pass it on to the next generation? Determine the real value of your business. If necessary hire a qualified professional to provide a clear valuation. Create an exit strategy and stick with it.
Build Separate Retirement Accounts
Trying to build retirement savings while growing your business can be challenging but it is crucial to you fulfilling your retirement dreams. The reality is that solely relying on the value of your business to carry you through retirement is a risky approach. Building separate retirement assets is crucial to a sound retirement plan. Explore available retirement savings tools such as SEP IRA’s, 401Ks, etc. These plans provide a way to systematically save toward retirement while providing current tax benefits. Review your budget and create a disciplined savings approach. Establish a habit of regularly contributing to your personal retirement savings. When deciding how to invest your available assets or what salary to draw from the business, make sure you focus on addressing both sides of your financial life.
Hire Outside Support As Needed
Running a successful small business requires a number of skills, from delivering your product or service to managing employees and future growth. Hiring professional outside support gives you access to experienced professionals who can apply their expertise to your specific needs. It can also free up precious time to allow you to focus on what is important, such as sales.
Determine what professional support you need
Depending on your situation you should consider hiring a tax professional, attorney, and a financial advisor. Ask your professionals to work together as a team to help align your business and personal financial life. Let them provide the insight you need to help fulfill your future retirement dreams. The tips in this report are a helpful overview of what you might need to address your own retirement, but every situation is unique. Small business owners who recognize and follow these tips, and take proactive steps to plan for the future, are better able to fulfill the retirement they desire.
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