Your Business, Your Future:
Let’s face it: your business is your baby. You founded it, nurtured it, and built it into a success. It’s more than just a business—it’s part of your identity. For many business owners, the thought of retirement can feel daunting and uncertain.
- Who will take over your business? Will they care about it as much as you do?
- What will you do with your time once so much of it has been spent growing and managing the business?
Some business owners are serial entrepreneurs, moving from one venture to the next. But many dedicate years—even decades—to one business, creating deep connections to its success and legacy. Whether you hope to pass the reins to a family member, sell to an outside buyer, or transition into retirement in another way, making that leap can be tricky.
Here are five key considerations to help you prepare for this next phase and navigate retirement with confidence:
Create a Clear Financial Plan
Only 1 in 4 small businesses have a formal financial plan for retirement. If your business has supported your lifestyle, from family expenses to personal perks like vehicles, travel, or entertainment, it’s critical to evaluate these costs and how they’ll transition into retirement.
Start by capturing these business-related expenses and creating a comprehensive budget for life after work. This financial clarity will provide the foundation you need to move forward confidently.
Plan for a Meaningful Use of Your Time
Many business owners find themselves asking, What will I do in retirement? After years of focusing morning, noon, and night on your business, having idle time can feel overwhelming.
Consider transitional opportunities that allow you to ease into retirement:
- Could you consult for your former business after it’s sold or transitioned?
- Could you coach management or mentor team members at your old company?
- Could you consult for firms in your industry or for key vendors you’ve worked with?
A phased retirement can help you stay engaged while preparing for a full transition, giving you time to adjust and find new opportunities for fulfillment.
Pursue Interests That Capture Your Focus
Retirement is an opportunity to pursue passions, but hobbies alone may not fill your time. While golf, pickleball, or biking are fun, they likely won’t provide the structure you’re accustomed to.
Instead, think about where you can make an impact:
- Are you charitably inclined and interested in volunteering?
- Would you like to sit on a board or advise local businesses?
- Are there friends or peers starting new ventures where your experience could help?
Business owners are often driven by purpose and impact. Retirement can be the perfect time to redirect that energy into new, meaningful opportunities.
Reflect on What Matters Most
Take time to dig deep and reflect on why your business was so important to you. Was it the sense of accomplishment? The relationships you built? The problem-solving? Write down what mattered most and use these insights to shape your retirement plans.
Consider reconnecting with people or groups you may have missed while building your business. This could include family, friends, alma maters, or professional organizations. Building these connections can provide a fulfilling foundation for your next phase of life.
Align Your Financial and Business Plans
Before you sell, transfer ownership, or close your business, ensure you have a solid financial plan for both your personal needs and your business’s future.
Many business owners hesitate to retire because they fear they haven’t saved enough or worry they can’t live without the income their business provides. A financial advisor can help you determine:
- What you have and what you need to retire comfortably.
- How to plan for the sale, transfer, or closure of your business in a way that aligns with your goals.
The peace of mind that comes with knowing your financial future is secure is invaluable as you step into this next chapter.
Take the First Step Toward Retirement Success
Retirement is never easy, and for business owners, it often comes with added layers of complexity. But with the right planning and guidance, it can also be one of the most rewarding phases of your life.