We’ve met lots of business owners recently who are still working hard well into their 60’s. This is typically because they love what they do. But also it’s because they haven’t had a chance to consider making plans. They are too busy!
So, why should you take your foot off the gas, for just a moment, and think about how what you are doing now might provide the ability to wind down and potentially stop altogether. Assuming that’s what you want of course? Consider though, will you be able to continue at this level in another 10 years?
We would say…..
- Start planning now. We’ve spoken to a successful business owner recently and we’ve put in place a 3-year plan for exit. It’s never too late!
- Are you selling your business or passing it on? If the former, perhaps you need to chat to your business adviser to get an idea of how much you can sell for. If the latter, you need to identify someone who you can trust to take the business forward and how that will affect your future plans.
- Do you have the right remuneration strategy in place or are you just leaving cash to build up in the business? There may be ways to make this much more tax efficient and benefit your long term plans without the business suffering.
- What do you want your “life after work” to look like? How much will you need? Don’t forget about inflation. How much will you realistically need to sell your business for to ensure that you don’t run out of money for the rest of your life?