Are you ready to RETIRE? If not NOW, when?

3 Reasons you should plan for retirement NOW

You may be familiar with the saying “The best time to plant a tree was 20 years ago, the next best time is NOW.” If you started your business thinking of it as your retirement ticket, make sure you have a contingency plan. Starting your business does not guarantee an automatic retirement plan for you. If your business is dependent upon your ability to perform, what happens if you are unable to perform for a period of time? Does your business continue to make money, depositing a percentage of that income into your retirement fund? Absolutely not.

Developing a contingency plan doesn’t mean your business fails, it simply means you have a plan for retirement – outside of selling your business.  If you have postponed thinking about your retirement planning, here are 3 reasons you should not postpone it any longer:

-         -- You may not be able to work forever, or may not be willing to: You started your business because you were passionate about it. There is no guarantee that you will find someone else that will duplicate that passion. You must be prepared for that. Perhaps you have hopes for your children to one take over your business, and they may very well be on board, but be prepared in case they are not. In any case, you will not continue actively working your business forever, so you do need to plan a proper exit strategy.

-         -- Your business may not sell for as much as you hope: It is common for business owners to choose to sell their business at retirement. Because you have an emotional connection to your business, chances are, you will always place a higher value on it than it really is worth on paper. Be prepared for this when you put your business on the market.

-        -- Social Security is not enough to live on, and medical expenses may increase: As you get older, it is naïve to think that government benefits alone with cover your life expenses. As time goes on, the social security budget continues to shrink while inflation continues to go up, raising the cost of living and medical expense. To enjoy a quality of life in retirement, you must have a plan that includes more than just social security.

No matter how much you LOVE what you do, you probably won’t to do it forever. Think of professions like a plumber, a baker, or a hair stylist; despite your passion for your work, your body will just not allow you to work this kind of professions into old age. As we age, the quality of service that we can offer will eventually start to deteriorate. That’s why we retire.

My goal is not to scare you, just to make you think. It’s your life, live it your way – just make sure that it is the BEST way for you (and your loved ones).

Are you working in your business or on your business?

HAVE YOU THOUGHT ABOUT THE "WHAT IF'S"?

As a solopreneur, you got into business to pursue your passion. If you’re a baker, you love to bake, if you’re a plumber or handyman, you love to fix things. However, what so many new business owners forget is that there is more to owning a business than just doing all of the things you love. There are things like insurance, taxes, payroll, marketing, all of the administrative tasks that are necessary to run your business but you don’t really want to do, right?

Here’s the challenge: if you spend 100% of your time inside your business, you don’t know what your business looks like from the outside. Don’t get me wrong. It is imperative that you continue to do the things that you are good at. But there is much more to business than your core product line. It has to be facilitated, managed and grown. Take a minute and think about your role in your business. 

If you are a solopreneur, the buck stops with you. So, what happens to the business if you cannot work tomorrow? What happens if you are absent from your business because of an accident, a stroke, cancer or death? Do you have a plan?

People rarely like to address these scenarios because they seem morbid. But you now have an asset to protect and if you don’t have a plan, that asset will lose value. If you want your business to continue to thrive and be transferable to your family, you need to protect yourself with adequate insurance, so your family can have the money they need to hire an expert – even if it is only temporary. Otherwise, your LEGACY will be bankrupt.

Consider protecting your business and your legacy. Otherwise, all of your hard work will be for nothing.

Don't Let Your Legacy Disappear! What All Business Owners Can Do To Secure Their Future.

Have you thought about your LEGACY?

Well, if you are a parent, your KIDS are your legacy, and you are probably proud. If you are an entrepreneur, your BUSINESS is your legacy, and you should also be proud. You have treated your business as a beloved child for many years, and now it is time to step down, retire or sell it. How do you ensure your business is in good hands? How do you make sure it will thrive without you?

Your legacy can be tangible and intangible. You give your kids an intangible legacy while you raise them. All of those priceless memories of teaching your kids do the right thing, stay on the right path... They probably ensure your children will have a bright future. And that is your intangible legacy to them. How do you ensure your tangible legacy (your Business) also passes on to them?

If you have grown children who can take over, make sure your wishes are not relayed to the family just during the Thanksgiving dinner. Make sure the information is also in writing. And, most importantly, that someone knows where it is. If your children are too young to take over, have a contingency plan - for the number of years until they can step up.

And if you are scared because there is no one you trust to take over, or your children are not interested in the business you built? Well, maybe that conversation around the dinner table should focus on what the family thinks is the best way to preserve the business beyond the time you work it. Listen to their input and plan accordingly. Don't forget to do that in writing!

Food for thought: Are your ESTATE PLANNING DOCUMENTS updated?