It’s never too early to think about that impending goal of retirement. But now that you’ve gotten to that point – what is going to happen to your business? There are many routes that you could take, but you’ve got to be sure that it’s the right one for you.
Hand Over the Reins to a Family Member
According to Exit Advisor, this one is the most traditional option, and for good reason. If you have a business that you are passionate about, where you have poured years or decades into providing the best service or product possible, you may want to see a family member be the one to take care of it when you go. That would mean that the accompanying profits and assets would indirectly benefit you (since it would stay within the family). It would also be more likely that the new owner would have the same values, passion, and standard of quality that you had maintained.
Sell Your Business
Sometimes, it’s just time to cut your company loose. While you won’t have any more control or any sort of relationship with your business after selling, you will have a respectable pile of money to invest and enjoy in retirement. The process of finding a buyer, however, will be something you have complete control over. The standard and commonality of buyers will vary widely depending on your location and kind of business – but more often than not there will be at least a few who are willing to take it off your hands, whether that be other companies or entrepreneurial individuals. According to Franchise Gator, private equity buyouts are a growing trend in the business world.
Have a Trusted Employee or Associate Take Over
Every situation and business will be different, so this option may or may not be available to you. But if you want to see the business thrive after your departure, it just might be the safest option. Deeding or selling the business to someone who already has experience in your market and (most likely) with your specific business comes with clear advantages. It also provides for a smooth transition of power, both legally and socially. The details of such a transaction will be up to you and your situation – so make sure that it’s a fair and over-the-counter process.
This should be cause for celebration! Retirement is an accomplishment that far too often creeps more and more out of reach for the younger generation of entrepreneurs. But it should always be the long-term goal, regardless of where you are financially. Have a plan early, and you won’t be caught by surprise.
Every business needs to make certain investments in order to succeed. If you are already a business owner, you have already made several investments for the good of your business. If you’ve found your business plateauing, these investments will help take it to the next level.
Proprietary Software
Proprietary software is computer software that a business can purchase for a variety of reasons. Depending on the type of business you run, different software programs can be extremely lucrative investments. For example, if your business sells a product, purchasing software that allows customers to make online purchases could spike your sales significantly. Other software can help you keep track of your finances, helping you to track what is and isn’t working within your business. With the increasing importance of technology within society, businesses need to adapt their strategies to keep up. Proprietary software is the tool to do that.
Cybersecurity
With the increasing use of technology, however, comes the increasing need for cybersecurity. Your business needs protection from the millions of malware applications around the world. Investing in a reliable cybersecurity program can help your website run more smoothly, and protect your information from possible digital viruses. If your business’ website was attacked by malware, you could lose hours or even days of time trying to fix things. Investing in cybersecurity saves you the financial cost of those hours of lost productivity. The security that comes with these programs gives you peace of mind that your business will be able to keep running smoothly.
401k Plans
If your business has full-time employees, investing in 401k plans for them is a good idea to help business. Individuals looking for full-time employment actively look for companies that offer retirement benefits. Offering 401k plans can help you attract more reliable, qualified employees because they’re willing to accept the job. Once working, employees who receive retirement benefits are more likely to stay long-term. This is a great way to show your employees you value them and make sure you’re hiring the best people for the job.
As a business owner, there are many things you need to keep track of financially. It can be tempting to keep running your business as it is, but to really succeed, there are investments you need to make. Invest in these opportunities to push your business to the next level.
When you are at work, it’s always a goal to make a good reputation for yourself. Your ability to move upwards in your work depends on your ability to show strong leadership qualities and help your team to be more effective. It can be a challenge to figure out how to best display your positive leadership qualities, but if you are consistent and able to adapt, you can make a huge impression on the others around you.
Lead by Example
Some people get caught up in leadership and think they always need to be telling other people what to do. However, one of the most effective things you can do as a leader is to lead by example. When you show your team that you are invested in the work and willing to put in the hours, they will be more willing to do the same. Strive to have a positive attitude and to be proactive so that your team will want to have the same qualities themselves.
Take an Interest in Employee Success
A good leader is working to help everyone be better, not just focusing on their own success. That means that if you want to be a good leader, you need to be invested in the success of the employees around you. Work together with them to make sure that everyone has a good chance of continuing to improve and grow in the workplace. To help your employees be successful, you have to get to know them. A Gemba walkthrough can help open up communication between you and employees.
Show Integrity to Your Team
A big part of leadership is being trusted by the people you work with. But if you aren’t showing integrity in all the work you do, it can be hard to start establishing the trust you need with your employees. Make it a point to be as honest as possible and show your integrity at every turn. Your employees are paying attention and they will notice if you aren’t showing the right integrity.
Showing leadership at work is a great way to keep moving up the chain of command. Make sure to continue proving yourself as a good leader even as you move forward and upward. Making that effort will help you to be more successful and move your team in a positive direction.
Entrepreneurship is one of the most surefire ways to take control of your career and unlock unlimited earning potential, time, and location freedom, and finally lead the life that you dream of. But entrepreneurship is also an incredibly difficult endeavor that requires tons of determination, discipline, and a willingness to do tedious and difficult work that others are not. Being an entrepreneur can be an exhilarating and exciting pursuit, but it also requires work that can be draining and stressful. Here are three stressful but necessary tasks that every entrepreneur needs to do and how you can achieve them.
Comply With Laws and Regulations
The first stressful but necessary task that every entrepreneur needs to do is comply with laws and regulations. Dealing with the government is stressful and difficult because nothing the government ever does, or writes is easy to understand or straightforward. If you have ever tried to read the regulations governing business operations, then you understand just how frustrating it can be to try and decipher them. But legal compliance is essential for all entrepreneurs because otherwise, you are running the risk of lawsuits, or even jail time. Do the work you need to follow the laws.
Hire and Replace Employees
Another of the many stressful but necessary tasks that every entrepreneur needs to do is hire and replace employees. Hiring is always difficult, especially in the current labor market where qualified workers are in short supply. Spending time hiring can feel like a huge time commitment that keeps you from getting other essential work done. Outsourcing your recruiting can save time and money in your search for employees. Just because the hiring task needs to get done doesn’t mean you can’t have others’ help. Hiring and replacing workers is an essential task.
Taxes
The final stressful but necessary task that every entrepreneur needs to do is prepare and file taxes. Taxes are never fun or easy, even for employees with simple W-2 income and basic deductions. But for entrepreneurs with multiple streams of income and businesses, taxes become a maze that is difficult to stay on top of. You can hire a tax professional to help you and file for you, or you can utilize helpful tax software for entrepreneurs to help you.
There are seemingly countless tasks that entrepreneurs need to stay on top of. But some tasks are more necessary than others. Make sure that you tackle these three necessary but stressful tasks to keep your entrepreneurial endeavors afloat.
While the workplace and competitiveness can vary greatly from industry to industry and even over time, it is always a good idea to work to entice the best possible new hires. The key to managing this is to provide excellent perks and benefits that make your business very appealing to new talent. There are many perks you can think about adding to your business, and below you will find a few of the most effective.
Time Off and Leave Benefits
Most people are going to need time off occasionally for illness or because they need a break from work. And while most full-time jobs provide some level of time off, in many cases it isn’t enough. You should strive to have a competitive leave policy that gives your employees room to take breaks, and rest and relax. You also need to make sure that you support employees when they do take leave or use PTO so they know their job is safe when they take the time they need.
Work From Home
Providing flexibility and the ability to work from home can also be very appealing to modern workers. There are many jobs that really don’t require anyone to come into the office, and if your employees can do their job effectively from home, it is important to offer that opportunity. Employees who work from home need to take extra care to secure important data. If you have policies in place to support cybersecurity, it will help your employees to safely work from home.
Performance Based Benefits
Your employees are the backbone of your business and they deserve to be valued and compensated for their good work. Providing regular performance-based bonuses to your employees helps them to feel valued in the work they are doing. This makes them more productive and more loyal to your company. Work bonuses into your pay structure so you can reward all your employees when they do great work for your business. Set clear expectations so employees know what they need to do to receive those bonuses as well.
Your business needs great employees to be able to flourish in your industry. The perks you provide can set you apart from competitors and make your business an appealing place to work. All you have to do is make sure that you are offering your employees opportunities to be supported and valued when they do their best work.
As your business grows, you will need to hire employees. When it comes to hiring, you want to find the best talent, encourage longevity, and stay within legal parameters to avoid any trouble down the road. It is important for you to understand the law when it comes to hiring. Here are three areas to be aware of.
Laws Against Discrimination
Discrimination of any kind is strictly prohibited within each stage of the hiring process. This includes your job advertisements, recruitment, the application, referrals, interviews, and selection. The United States Equal Employment Opportunity Commission (EEOC) defines discrimination as treating someone differently or less favorably because of their race, color, religion, sex (including gender identity, sexual orientation, and pregnancy), national origin, age, disability, or genetic information. It is also illegal to retaliate against a person for submitting a discrimination complaint against you.
Payroll Regulations
The EEOC also has payroll regulations. You are obligated to act in compliance with all federal, state, and local regulations for how employees are paid. These include minimum wage rates, overtime rates, payroll taxes, and the equal pay act. The equal pay act exists to prevent wage discrimination based on sex. It states that people of both genders must be paid equal salaries for equal work. There will also likely be regulations regarding pay frequency. There may be federal or state laws outlining common pay schedules.
Employee and Contractor Designation
It is important to understand the differences between an independent contractor and an employee. This distinction matters because of differing tax laws for each. Employers are required to withhold various taxes for each employee. Independent contractors, on the other hand, are required to pay self-employment taxes. You can distinguish between the two by looking at the behavioral control, the financial control, and the relationship between the parties. With an employee, there is much more behavioral control involved, such as how, when, and where to work. Employees receive more training and are evaluated based on how the work is done, rather than just the end result. With an independent contractor, there is less financial control. They work on their own equipment, their expenses are not reimbursed, and they are generally paid by the job. Finally, your relationship with an employee is generally considered indefinite, and they will perform key functions for the business. You can get into trouble with the IRS if you hire someone as a contractor when they would be legally designated as an employee.
Be certain that you understand and comply with all the regulations surrounding the hiring process. You don’t want to find yourself in legal trouble down the road.
