I Want to Retire at 55! Why?
Many small-business owners, including owners of graphic firms, think they want to retire early. I find that many, if not most, of these people have not really thought it through. There are two very important questions that must answered:
1) Have you prepared properly for it to be possible?
2) Have you really thought about what would happen if you did retire?
Why should you care?
A mentor of mine often used the phrase, “The day you should begin planning to sell your business is the day you start it.” Sooner or later, every business is sold or closes, so planning for that reality should be an important part of owning your own business. Few small-business owners actually do it.
I have consulted with many owners who are in their 50s who say they want to sell their businesses. However, when they get up to that line, they have trouble crossing it for any number of reasons:
- They have not planned properly to handle the financial realities.
- The sale of the business will not provide the financial return they expected/need.
- They realize that they don’t have anything else they want to do.
- Medical insurance has been a real issue, because they’re not old enough for Medicare. Insurance is expense if you can get it on your own.
Still want to retire early? Well, the reality is that unless you win the lottery, you may have no choice but to continue working. So, continue working and also put together a plan to solve the exit challenges. Put together a logical plan with the help of your financial advisor and others you respect.
If you participate in a peer group, its members can be of great help. At Allegra Network, many of these issues are worked out in what we call Performance Groups. Exit strategy planning is something we work hard on with our franchise members.