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Selling your small business is a bad retirement plan

retirement savings

Efficiency is the name of the game at Agents of Efficiency (obviously) so we’re making it even more efficient for you to improve your business. Every week, we sort through all the boring stuff to bring you the best tips from the wide world of the web. For this week’s #2tips4tues, we examine something many small business owners don’t think about enough: retirement.

The numbers game …

Planning to sell the business isn’t the same as a retirement plan, Kerry Hannon wrote at Forbes: “Run your numbers. Ask yourself: How much will I need to live on in retirement, especially when the business isn’t picking up the tab for some expenses? Just getting a sense of what your living costs might be when you quit working could be the retirement-savings wake-up call you need. Most major financial services firms such as Fidelity, T. Rowe Price, TIAA and Vanguard offer fee online retirement worksheets and calculators to help you get a bead on future expenses.”

… and the game of thrones

Small business owners should consider building a succession plan, Kim Jenson wrote at the Chicago Daily Herald: “The main things to think about are who will run the business when you exit, and how the ownership interest will be transferred to future owners. If the business is a sole proprietorship, consider who will succeed you as leader, and allow enough time to transfer knowledge and train your successor to run the business successfully. … Don’t be afraid to make hard decisions about family members or employees who simply may not be suited to run the business.”