Selling your business would be really nice to begin retired life, wouldn’t it? But how can you be sure that your business will make it to this point?
Here are some tips to make your reliable nest grow even stronger.
#1 Diversify
Your company is your biggest asset, but it’s not the only one. If you’re only investing in your company or in real estate, you should also take a look at other things.
It’s important to have liquid assets aside from the business, such as an IRA (Individual Retirement Account) or a 401(k) account.
#2 Plan ahead
It’s a common tip for almost any business, but sometimes we forget it.
Selling your business will most likely be hard emotionally and it also takes up a lot of time. On average, it takes 9 to 12 months for the transition to happen.
When it comes to sales, it’s advised to plan pre-sales at least 2 years before. You know you have to get your ducks in a row before you can be ready for the next step.
#3 Talk with multiple potential buyers
It’s a common mistake to only speak with one potential buyer, because sometimes it feels like all you need is that. But to be more successful, you shouldn’t forget about better offers that might be available.
For example – in an auction, there are multiple bidders provided with the same info. The highest bidder wins. Think of your business as the product being auctioned off while the auctioneer talks really fast looking for potential buyers, and finally is SOLD to the highest bidder!
You don’t want to settle for anything less than what you deserve.
#4 Don’t expect one big payout
Looking to be paid fully in cash? Probably a tad unlikely.
Some business sales involve a seller’s note, which means that it could take over 3 to 7 years before you receive payments that add up to the worth of your business. Because of this risky aspect, it’s important to diversify your assets for retirement so you can have funds for emergency use.
To set up retirement accounts that best suit you and your business, give us a call at 937-308-0758 to speak to an expert in business retirement solutions! We have your best interest at hand and are here to make your retirement planning easier, straightforward, efficient and financially beneficial.
We can’t wait to hear from you!
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