Your business is your livelihood. Whether you started it because you wanted to capitalize on a good idea, wanted to help people with quality goods or services, or wanted to set up a means of retirement, you poured your heart and soul into making your business what it is today. But is selling it now really the best choice for funding your retirement? Take a moment to ask yourself these essential questions before consulting your trusted financial advisors at A. Roberts & Associates!
The most important questions you should be asking yourself before you sell your business for retirement should revolve around the state of your business and how you feel on an emotional level. Let’s dive into what that means:
- Is My Business Really Worth What I Think It Is?
One of the most common mistakes that people make is that they put their business on too high of a pedestal. They believe that just because it’s a functional company it must be worth a certain amount, but there are many factors that can come into play:
- The current market value of your industry
- The demand for goods and services you provide
- The knowledge of the one buying the company
- How sustainable the business has been in recent years
Think about it from the buyer’s perspective. You would want to purchase a company that has the potential to grow and turn a profit, not one that will cause you to go bankrupt. If your business isn’t good enough to buy, then you can’t expect to get much for it regardless of how much time and effort you put in.
Learn from a professional, and check out Business Icons with Kevin Harrington!
| Using Your Valuation Gap To Determine A Sale A valuation gap is the difference between what you want to sell your business at and what it’s actually worth. If your valuation gap is too large, then you may want to hold off on selling it until the market is in your favor. |
- Am I Personally Ready To Let My Business Go?
The whole point of retirement is to leave behind your hardworking days and relax. If you’re the kind to micromanage your business 24/7 (and maybe have dreams about it), how could you possibly settle down? You need to mentally prepare yourself to leave everything up to the person you relinquish control to, otherwise, you may never know peace of mind even when you should be enjoying your hard-earned retirement. Finding the right buyer who is capable of carrying the torch may take some time, but that’s all the more reason to think about this carefully.
Depending on the size of your company and how many people you have employed, you may also want to consider looking into small business owner leveraged planning services.
- Do I Have Other Ways To Fund My Retirement?
Another big mistake that people make is one that is difficult to fix the more time that passes. Many individuals start up their business for the sole reason of selling it later to fund their retirement, and won’t open up an actual retirement account to save separately. The problem with this is that there’s no way of telling what state your business will be in by the time you want to sell it and if it will be substantial enough. Even if it seems like business is booming, having a retirement fund on the side will ensure that you have what you need when the time comes to put up the hat.
Play It Smart And Contact A. Roberts & Associates!
Don’t rush into selling your business, reach out to A. Roberts & Associates for professional financial advice and retirement planning for the best outcome! We’ll help you make the most of what you have so you can get your money’s worth.