Selling Your Business To Help Fund Your RetirementReading Time: 2 Minutes
Last Updated: September 21, 2023
Most business owners are hyper-focused on growing their business and legacy. But at some point, they must consider and plan for their exit and retirement. If you are considering selling your business, there are some steps you should take now to set yourself up for success later. The NAWBO | National Association of Women Business Owners (NAWBO) can help you understand your options.
Women business owners should consider a number of factors when preparing to retire. For example, experts recommend starting the process 3 to 5 years before the date you want to stop working. If you wait until you’re 70 years old or older, it might be too late. You may not have enough money or time available to position your business for sale.
After several years in business, a company will hit a stage of maturity when owners can focus on long-term goals and strategy. This is a great time to start thinking about questions, like:
- Are you going to close your business?
- Will you give your business to someone?
- Will you sell your business to someone?
How you proceed at this stage can affect your future wealth. That’s why it’s important to consider how Social Security fits into your retirement. Social Security benefits are part of the retirement plan of almost every American worker. Since there are specific rules for business owners, make sure to speak with your financial advisor or accountant before applying. You can also learn more about Social Security in retirement for business owners by visiting the Social Security Administration’s website and checking out their publication, If You Are Self-Employed.
One of the biggest mistakes business owners make – aside from starting too late – is having no plan at all or unrealistic expectations for selling their business. Perhaps you’ve compared your business to similar businesses and come up with the wrong value for sale. This is where an expert can help—giving you sound advice and helping to manage your expectations.
Lastly, retirement can be tough for you after years of putting your heart and soul into your business. Your business can often become a major part of your identity. Once you retire, use your free time to find what fulfills you. Don’t overcommit. Stay engaged with your network. Acknowledge your feelings, then decide how to move forward!
Our posting of this blog does not constitute an endorsement or recommendation of any non-Social Security organization, author, or webpages.
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