Life After Business: Retiring as a Business Owner

Prepping for the Big Exit

Your best chance at successfully leaving behind your business lies in careful preparation. Selling, passing it down or shutting it down requires months if not years of preparation. Don't wait until packing up to set things into motion. First, ensure your business runs without you. This may mean setting up systems and processes, hiring trustworthy managers or training successors. A business which runs without its owner is much more attractive to buyers or family members who may want to take over ownership from you. Consider this, would you buy a car without brakes? Likewise, make sure that all aspects of your business work as they should. Finally, determine its worth. Hire an appraiser or financial advisor to properly appraise it or risk awkward retirement party conversations around its valuation. Lock in an exit timeline. Setting an official schedule helps hold you accountable and focus while giving team or client members enough time to adjust, say their goodbyes, and practice crying on cue.

Financial Stability in Retirement  

Retiring as a business owner adds an additional complication to financial planning. You're no longer simply quitting a desk job but are instead relinquishing an asset that was likely your primary source of income. Get advice from an advisor prior to starting on retirement. Diversifying your portfolio and developing additional income sources should be important  if you're selling your business, especially since that initial lump-sum payout must last decades before becoming accessible again. Also keep in mind taxes, they could eat into what's left. Selling a business often brings capital gains taxes and other unforeseen financial surprises, so allocating part of your sale or retirement funds for taxes might seem less than exciting, but it's necessary. 

Preparing Your Will and Lasting Power of Attorney

Planning for retirement should include creating your will and lasting power of attorney documents. Your will is designed to safeguard your assets according to your wishes, protecting both you and your loved ones during emotional times. An up-to-date will can reduce disputes and provide reassurance for everyone involved. Appointing a lasting power of attorney to manage your financial and medical decisions if you become incapable is also important, providing someone to step in with choices that align with your wishes, making sure all aspects of your affairs are managed responsibly. 

Leaving a Legacy  

Business ownership offers its own special set of rewards, leaving behind a legacy. From creating a thriving company and community impact to imparting lessons and creating jobs for others. Your work matters and it should be taken seriously as you reflect upon its impact and celebrate its results with your loved ones and employees alike. Make time to reflect upon this legacy by writing down your story or sharing experiences through entrepreneurship programs. Retirement should not mean closing up shop but an encore performance where you decide how you wish to shine.

Conclusion

Retiring as a business owner is both challenging and exciting. After decades of building something from nothing, trust that you have what it takes to create an enjoyable post-business life too. With proper planning, financial savvy and an openness to redefine your purpose you could enjoy an idyllic retirement filled with achievement, relaxation and even some mischief. No one is keeping track now.