Stepping away from the business you have worked so hard to build and have spent so many years nurturing may be a hard thing to imagine, and for business owners, retirement is never cut and dry. It can be complicated, overwhelming, and emotional, leaving you to question if you are truly ready for retirement and if you are financial prepared.
An exit/succession plan for your business will help you to transition into retirement without the stress and worry of how your departure will affect your business, your employees, your finances, and the legacy you may want to leave to your loved ones.
In addition to planning out your transition into a full or partial retirement, your plan will also consider the possibility of an unexpected exit from your business due to disability, financial hardship or death. Your plan will act as a blueprint for what will happen with your business operations, employees, and financials in the event you are not able to run your business.
- What is your timeline? When are you looking to retire? How long will you need to develop and implement your exit/succession plan?
Do you have the proper retirement plan? Will this plan prepare you with the income you need during your retirement years?
When you are ready to retire, do you want to sell your business or transfer your business to your children? Have you thought about the business structure you have and how it will need to change when you choose to exit the business?
Who will assume your roll and the responsibility of growing your business when you are ready to exit?
How will this plan impact your employees? How will they be affected if you sell vs transfer ownership to family?
What will happen to my business if I become disabled or die?