HOW TO SELL YOUR START-UP TO FUND YOUR RE­TIRE­MENT

Collective Hub - - FEATURE - BE RE­AL­IS­TIC FOOL­PROOF IT SET YOUR­SELF A RE­TIRE­MENT WIN­DOW

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.

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