HOW TO SELL YOUR START-UP TO FUND YOUR RETIREMENT
Three things you need to know to plan ahead, from Lisa KippsBrown, author of Boomer Cashout. Around two-thirds of small businesses never sell, and are closed when the owner retires. Of those that do sell, the average sale price is about half of what the owner thinks it’s worth. The prospects for the average business owner to ever retire comfortably are slim – but it is possible. To have maximum value, your business should be able to operate as much as possible without relying on you. The closer to turnkey you can make it, the easier it will be to transfer to someone else. Make a list of everything you do in a day, and make a goal of gradually handing off everything possible to someone else, even if it’s a virtual assistant. In the old corporate world people would set a month, or a day, when they planned to retire, but when you’re hoping to sell a business, you need to be more flexible. Start planning for sale at least three years out. This will give you time to make the business as attractive as possible.