READER’S POLL: Will Your Business Allow You to Retire?
So many questions we have received lately have dealt with exiting their businesses… can I sell now? What is valued? Will the final price be enough to retire on? So, we thought it would be interesting to learn how our readers feel about business value and its connection to retirement.
Do you plan to sell your business to fund your retirement? |
If you answered…
“No. But my owner’s draw and investments will be funding it.”
Choosing this path can be a great option to fund your retirement. However, you’ll need a competent financial planner to help you make the most of this income to ensure all of your financial needs are met. By working with a qualified CERTIFIED FINANCIAL PLANNER™ professional, you can ensure that your personal and business finances are moving toward the same goal. Taking this approach we suggest you check out our post: “The Business Owner’s Guide to Knowing How Much to Pay Yourself.”
“I hope to sell one day but I’m not sure how much it will be worth.”
If you’re planning to sell one day, it is imperative that you begin working on growing its value today (read this article to learn how)! Growing your business’s value is a time-consuming process that you don’t want to put off until you’re ready to sell. If you wait, you run the risk of not being able to sell it or having to make concessions. Working with a CVGA or CEPA to improve the 8 key areas could help your business realize its true potential.
“I’m confident my business is valuable and sellable but no idea for how much.”
We are thrilled that you have so much confidence! However, it’s important to understand that 80% of small businesses that go to market never sell. Of those that do sell, only around 3% are able to be sole without concessions by the owner. Even if you’re among the 3%, you could, potentially, benefit from the information found in our Building a Sellable Business series.
“I am 100% sure my business will easily sell…”
This is fantastic news! But remember, without an actual appraisal in hand, your business may not be as valuable as you think it is. Before you make the decision to sell, you may want to evaluate whether it’s the right time to sell or if you should continue working on your business for a while longer.
“Can I really sell my business?”
You can sell your business… and for a profit. But you must stop working in it and begin working on it. Knowing where you want your business to go is the first step to getting there. Once you’ve decided where you want to be, don’t wait. Start working to increase your business’s value right now!
Of course, we are always available to help you determine a real value rather than going off of a “gut feeling”.