READER’S POLL: Are You Preparing Your Business to Bridge Your Wealth Gap?
Most business owners understand the need to prepare for retirement. However, we often encounter business owners who look at their business as their retirement plan. The problem with this idea is, once you’ve retired, you’ll no longer be able to rely on the income your business provides. While you could sell it and live on the profits from the sale, the harsh reality is that only 12%-14% of businesses are able to be sold. Therefore, you must begin saving outside of your business while also working to grow its intrinsic value. By working to make your business more valuable, you make it more attractive to potential buyers and investors. Thus giving you the chance to sell it, using the profits as part of a larger retirement plan. So, are you preparing your business to bridge your wealth gap?
If you answered…
“No. I’m not currently working to grow my business’s sellable value.”
If you’re not working to grow the value of your business, you’re merely working in a job where you happen to be the owner. You’ve created an income—perhaps, a really good one—but that will dry up as soon as you exit the business. It’s time to begin viewing your business for what it truly is… an asset. Although you’ve built it into a money-making machine, your business is only valuable to you. By taking steps to work on your business, rather than in it, you could grow the value of your business and make it attractive to prospective buyers. Follow this link to learn more about why it’s the value, not profitability, that matters most in your business. Only a valuable company has the potential to bridge your wealth gap.
“I’ve worked on my business before but lately, I’ve gotten too wrapped up in the day-to-day to make real improvements.”
We’re glad that you’ve at least begun the process of preparing your business to bridge your wealth gap. Likewise, we understand how easy it is to get bogged down by all of the little things it takes to keep your business going. However, removing yourself from the epicenter of your business is part of the value growth process that prepares your business to bridge your gap. Not only does it allow you to work on your business rather than in it, but it also makes your business scalable. As you work on each of the 8 key areas to grow the value of your business, you’ll likely simplify the day-to-day operations, increasing profitability and potentially decreasing your stress levels.
“I am actively working with a business value growth advisor, preparing my business to bridge my wealth gap.”
We are thrilled to learn you’re doing all you can to maximize your greatest asset… your business! By working with a CVGA®, you’re taking proactive measures that can exponentially increase the odds of being able to sell your business and bridge your wealth gap. However, it’s important to continue monitoring and adjusting your strategic plans, as well as to recalculate your wealth gap. As you improve in one area, others will be affected. The same is true for your wealth gap. As life happens, your needs and goals may change. Reviewing your progress and measuring it against your goals is the best way to ensure you stay on track.
Many business owners fail to make the connection between their personal finances and their business. The Financially Simple team of advisors and business value growth experts are passionate about helping small business owners succeed in reaching all of their financial goals. But to bridge your wealth gap and have the retirement you’ve always dreamed of, you must begin working on your exit now. Reach out to our team to learn more about how we could help.