ARE YOU READY FOR
RETIREMENT
PAGE 5
5
WHY THE FUTURE IS
OURS TO MOLD
"
THE BEST WAY TO PREDICT THE FUTURE IS
TO CREATE IT" ABRAHAM LINCOLN
Thirty-five percent (35%) of business owners are counting on the sales of their businesses to be
financially prepared for retirement. Yet only 17 percent have identified potential buyers for those
businesses. This comes from a 2014 comprehensive national study of nearly 1,500 small business
owners conducted earlier this year by Guardian.
B
usiness owners who are expecting to sell their
companies to fund their golden retirement years may be
in for a surprise. They simply may not be able to sell their
businesses when they want to, or get the amount they
want from the sales.
However, the small business owner could be facing
several events that present a “non-bridgeable gap” at the
time of retirement, including: How much of the value of
the business is tied up in YOU as the small business
owner? “It's not just about sole proprietorships,. In many
cases the value of a small business decreases
tremendously when the business owner is no longer
associated with the business.”
Will you be able to sell at all? When selling a business,
much depends on market conditions at that time. If the
economy is down and buyers are nervous about taking
on new business ventures, it will be harder to sell. Buyers
may not be able to find financing, even if they want to
buy.
Will you get enough money from the sale to make it
through the end of your life? Selling a business is not like
selling an item in a store. The purchase price depends on
many factors, including finding a willing buyer who
perceives the same level of value you believe is in your
business.
It doesn't have to be a lost cause. One way to remedy any concern about your retirement and having the income
necessary to not only live comfortably but to also make sure that others are taken care of is to take control of the
direction of your business and grow the enterprise value through the help of seasoned veterans in the business growth
and fi