How To Retire From Your Own Business
The idea of retiring from your own business is something that will either fill you with dread and despair or joy and excitement. You might feel that since you have worked so hard to create the business and build it up, the last thing you’ll contemplate doing is stepping away. Conversely, you might feel that’s exactly what you need to do – and you can’t wait for the day you can retire and enjoy the fruits of your labour.
If you fall into the second category, you might then start to wonder just what you can do to ensure you are actually able to retire from your own business. Surely it would be a difficult thing to do? The truth is there are a number of options open to you; read on to find out what they are.
Sell The Business
If you want to retire and you want to make some money to retire on, one of the best things you can do is sell your business. Not only can you walk away and not have to worry about any of it anymore, but you will have a sum of money to enjoy now that you don’t have to work. Selling a business is something that many people find is an excellent option for this very reason. If you have staff to consider, you can even make it a term of the sale that they retain their jobs.
Speak to an expert who can offer you a valuation of your business. Remember that in some cases, you are the business, and without you, there would be nothing to sell. This is why it’s always wise to put some additional value into your business so you can step away with a profit when you’re done.
Find A Successor
Some people just can’t bring themselves to sell the business they have put their heart and soul into over many years, and maybe decades. Yet they still want to retire because they know life is about more than just working. This is a big issue, and it might seem as though there is no happy medium; you have to do one or the other, even if both choices aren’t ones you’re happy with.
There is a middle option, however. That is that you could hand the business to a successor. This might be someone who already works for you, or it could be a family member who is ready to take up the reins. If you choose this way, you can still be involved in some capacity, perhaps as a silent partner or someone who is paid dividends. You might even be involved in overseeing the business, but the day-to-day decisions and work are someone else’s problem.
In some cases, there will be no one to hand the business to and no inherent value in the business. If you still want to retire, then organising a voluntary liquidation through Bridge Newland is an ideal direction to go in.
When you do this, you are essentially shutting down the business as it is now. Any assets will be sold off to pay creditors, and if there is anything left over, you will receive it (which could, depending on the state of the business, help to fund your retirement). For some, especially those who are sole traders, this is the ideal solution as it allows you to move on quickly with no ties.