FOR BUSINESS OWNERS, A SUCCESSION PLAN CAN BE A CRITICAL PART OF PREPARING FOR RETIREMENT
Retirement can feel like a very far off thing as one is knee-deep in the everyday activities of running a business. This may lead some business owners to assume that their retirement is something they don’t really need to think about now.
However, putting off planning for their retirement could endanger a small business owner’s ability to one day have the retirement they desire. So, making preparations for their future retirement can be very important for business owners.
There are many such preparations that can be critical on this front. This includes carefully thinking about one’s retirement goals and making plans for retirement savings.
It also includes planning for what will happen with their business when they retire. A business owner can lay out plans in this regard in a business succession plan.
Despite the big role a succession plan can play in planning for important retirement issues for business owners, many owners don’t have such a plan. One survey indicated that over a third of small business owners lack a succession plan.
Being caught without a succession plan when one needs one can be very problematic for a business owner. Also, the longer one waits to have such a plan, the more curtailed their planning options might be. So, having a succession plan is a retirement preparation it can be important to not delay.
Along with getting it set up in a timely fashion, another thing that can be of high importance when it comes to a business succession plans is making sure it is properly designed. These plans can cover many complex issues, and their details have can have very big implications in the future. So, making sure the specifics of the plan are well-aligned with one’s goals and situation can be crucial when setting up a succession plan. Experienced business attorneys can assist entrepreneurs with tailoring a business succession plan to their circumstances.
Source: Business News Daily, “5 Ways Small Business Owners Can Start Preparing for Retirement,” Paula Fernandes, Oct. 12, 2017