You might be wondering what the best practices are for selling your business as you approach retirement. From the beginning stages of your business to the success and reputation it currently holds, you have worked hard to get to where you are. Now, you are ready to retire. Keep reading to learn some of our tips for selling your business when you are ready for retirement!
Plan Ahead
When it comes to planning your exit from the business you built from scratch, you need to make sure you plan ahead. Timing is everything, as is being prepared. It is beneficial to make sure your business would be ready to sell immediately, regardless of when you plan to retire. Once you are ready to enter retirement, having a proper transition strategy is vital. This includes creating a plan for informing your employees of the upcoming change, as well as a financial plan to ensure you are prepared to sell your business. You also need to be well-aware of each step of the selling process. Being knowledgeable in the selling process will increase your odds of making a successful business deal.
Know Your Business’s Worth
You need to make sure you are aware of what your business is actually worth. To do this, you should take a look at your assets, liabilities, and past profits. Rather than rely on what you think your business might be worth, it is best to stick to the facts and numbers to make that judgement. Having an adviser look over your business’s documents is a great way to stay organized, be prepared, and help decrease the potential for risk.
Consider Your Day-To-Day in Retirement
Shifting from working 50-70 hours a week as a business owner to being in retirement is a huge change. Prior to selling your business, you will want to make sure you have plans for your days in retirement. As you transition from working more than full-time, you might find yourself looking for things to do. Making a schedule and determining how you want to spend your days in retirement is key to making the most out of your days. However, there are plenty of retirees that like to live their new lives without a plan or schedule, so if that is keen to your beliefs, go for it!
Whether you want to sell your business immediately or in the future, there are several factors to keep in mind regarding the selling process and the transition in general. If you are passing your business onto the next generation in your family, or selling to someone else, having the correct tools, strategies, and mindset will guide you along the way.
When it comes to selling your business, we are here to help provide you with the right financial tools. If you’d like to know more about the services that we provide here at California Wealth Transitions, contact us today!
