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.
Check out this article on how to reduce employee turnover at your small business!