From Start-Up to Retirement

Even for the few of us who can look at our plans to create a business from the day you open to the day you retire, thinking now about the full life cycle and where it can go wrong (because life has a way of throwing curveballs) can put you on better footing to come out ahead.

Planning for growth

One of the first things to consider is what your plans are for world domination? In this case, understanding yourself is key here. 

If you plan to stay small, with the business completely dependent on you, but build an operation that has sale-able value to fund your retirement, then you need to set it up differently. And you may need to sell with a long lead time before you actually retire. If the value is in your knowledge and relationships, the buyer may need you to stay on in a salaried position from one to three years to assist with the transition.

If you’re small, but a sizable contract is about to fall in your lap based on the good work you’ve done and reputation you’ve built, are you prepared to staff up with sufficient physical space, cash flow, and the additional capacity you’ll need? Ask yourself honestly if that’s something you want to prepare for, because you need to be thinking about it before you hang your shingle. 

If you know you want to grow large, then invest today in a CRM and other related business software that will exceed your needs, not just meet them. You’ll be saving yourself headaches and impacting the value of your business for resale in trying to transition to different products later. 

Whatever the size of your business, you should always have an exit plan and update it every two or three years. 

Looking ahead for retirement

Another important consideration is who will be in charge when you’re not. Life happens. You may not always be able to be at the helm. Do you have someone in mind? Do they know? Are they prepared? Have you invested in their training?

Preparing someone to be a top level executive in your business is a very different mindset from preparing the same person to take over the business in your absence. Not formalizing it is like your life ending without having a will. If the business is providing income for your family – or other families – this needs to be taken into consideration.

If you thought about this when you started your business, you’ll be well prepared. But chances are, if you’re like most people, you haven’t given this enough thought, and maybe haven’t even thought of it at all.

It’s best considered when things are running good because it changes who you recruit to come work for your business. You’ll be looking at everyone with the question: Is this the person who can run this business when I get hit by the ice cream truck (it’s not a bad way to go, after all – sweet endings and all that.)

Consider a valuation

One way to decide how prepared you are – or are not – may be to have a valuation conducted. It may show the weak spot of your business structure.If the owner is both captain and crew of the ship, with a small staff to support his or her work, then the business value is dependent on the owner continuing a role over time to ensure a smooth transition and development of the human resources needed to carry out the work. Or, as a strength, the valuation may demonstrate that the business is not dependent on a single person, and the bus will always come into the station on time without you, to continue with a mixed transportation metaphor.

If I were going to buy a book of business from a retiring Financial/Investment Advisor, I would be asking how much of that book will I be able to retain in a year. It’s true for just about any business…. Transitions in ownership can result in loss of business for the new owners. But if there is a warm hand-off, there’s a better chance that the customers will stay. 

Wealth management - and business ownership - has less to do with counting dollars, and so much more to do with knowing humans. Planning is key. Understanding people is also key. 

One more key: information. Talk to the full suite of financial professionals who can help you structure your business to meet your needs now and into the future. Because you don’t know what you don’t know.


Planning Network Partners is dedicated to examining this and other opportunities as part of a larger picture of your whole financial health. 

Contact Us today for expert assistance.