If you’re a business owner, you’re probably so busy that you haven’t thought much about the day you’ll want to move on, but someday that day will arrive – so you’ll need an exit strategy.
Your first step in creating this strategy is to plan ahead – even several years ahead.
Think about the big picture: Do you want to sell your business to an outsider?
Or keep it in the family?
The answer will help determine your next moves.
You’ll also want to identify any retirement income shortfall.
Even if you have Social Security and a retirement plan, such as an owner-only 401(k), it might not be enough.
So, if you’re going to sell your business, you’ll need to determine the amount required to fill this income gap.
Finally, as you plan your separation from your business, you may want to consult with your tax, financial and legal advisors, as well as a business valuation specialist.
Selling or transferring your business is a huge move – so plan ahead, get the help you need and find the exit strategy that’s right for you.
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor John Dickerson. Member SIPC.
