You spent your whole life building a successful practice. After all the trial and error and countless hours -you’ve made it! You can see the finish line. Now what?
One thing we all get really good at is getting into a rhythm of running our businesses and practices. We focus on setting and achieving goals and pouring all our recourses into our businesses. Then comes the questions, “What’s next? How do I leave my business?”
Here are some things to consider when preparing for retirement:
- Don’t put all your retirement eggs in one basket. Many people plow all their resourses into their practice in hopes that it will be the main and, in some cases, only source of retirement revenue.
- Define your target buyer. Is it a person within your practice or someone from the outside? Is it a family member? All these can determine the sale price greatly.
- Determine how long you will stay on during the transition.
- Are you willing to finance some of the purchase? This comes with some risk, but may allow you to get closer to your asking price.
- Max out tax-favored vehicles to harness company profits, augment retirement recourses, save on taxes and lessen the pressure of the sale of the business.
These are things we all should consider when planning for a successful transition. It is better to have certainty and clarity verses hope and risk.
Another resource: https://www.sba.gov/managing-business/closing-down-your-business/plan-your-exit
