Retirement can feel out of reach for many small business owners. But after working as hard as you have to build a brand, retain clients, attract new business, and keep your employees happy and thriving, you deserve to step away from your business and enjoy your retirement without worrying about the daily operations of your company. To do this, you need to create an exit strategy. At L. Jennings Law Firm, we’re proud to help business owners plan for retirement in a way that works for their families and their businesses. Here are some of the exit strategies you may want to explore as part of your small business plan in Arkansas.
Let an Heir or Partner Take Over
The easiest way to retire without dramatically impacting how your business operates is to let a trusted heir or business partner take over in your stead. The person you choose should be intimately familiar with all aspects of your company and capable of taking over when you step away. The main benefit of this strategy is that it provides your company with a sense of stability in the transition. The individual taking over is someone known and familiar with the ins and outs of your business.
You may even be able to maintain a stake in the company so you can continue receiving a portion of the profits even though you’re retired, further diversifying your retirement income.
Sell Your Business
If you don’t have a trusted heir or business partner to take over for you, selling the company may be the best option. This gives you cash upfront to help fund your retirement and allows you to completely step away from the company without feeling like you still need to answer questions as they come up. Of course, selling your business can take time, so make sure to start planning the sale early so you can find a buyer by the time you’re ready to retire.
Close Your Doors
Closing the company isn’t likely going to be the first choice for most business owners, but it can be a good option if you simply need out or don’t want to deal with the hassle of selling the business to someone else. By closing down, you’ll be able to sell off any inventory or equipment used in your business. This can give you an infusion of cash to help fund your retirement.
Why Choosing an Exit Strategy Matters
You took the time to build your business and make it as successful as possible. Choosing an exit strategy means you’ll have a plan in place to let you retire without having to continue overseeing the daily operations at your company. More importantly, it puts you in control of your company’s future and allows you to set the terms of your retirement.
If You Own a Business, You Need an Exit Strategy
Every business owner needs an exit strategy for retirement, but even the simplest strategies require a lot of planning. Let the team at L. Jennings Law Firm guide you through the process. Contact us today to schedule a consultation and create a small business plan that fits your retirement goals.