Everyone knows that entrepreneurs and small business owners often march to the beat of a different drum. After all, in order to start (and keep) a successful business you have to have a somewhat different and dynamic way of looking at the world and its possibilities. But this different way of looking at the world doesn’t always work in their favor.
This article in Entrepreneur.com points out that “In some ways, planning and saving for retirement runs contrary to the typical characteristics of successful entrepreneurs… Does planning for retirement make you a pessimist who assumes your business will never grow big enough to be sold for millions of dollars, making retirement savings irrelevant? Does relying on a retirement nest egg mean you’ve lost the entrepreneurial confidence you once had?”
Entrepreneurs and small business owners often feel the best investment in their future is to invest in themselves. Where an employee in a large corporation is likely to take any investment income and put it in stocks or savings, a small business owner is more likely to turn around and put that money back into growing her own company.
Contrary to what the dedicated business owner may think, it’s not pessimism to save for retirement—even as an entrepreneur; it’s just plain common sense. Luckily, there are ways for entrepreneurs to invest and save that don’t feel as if they’re taking away from their investment in their business. The article mentions cash balance pension plans, zero coupon bonds, individual retirement accounts and 401(k) plans.
But in addition to planning for your own future, you need to plan for the future of your business as well. After all, you won’t be around forever, and your successful business should be the legacy you leave for generations to come. Planning the successful transition of your business requires a comprehensive, well thought out, and flexible business succession plan. This is where our office can help. Whether you plan to leave the business to your heirs, sell it to pay for your children’s futures, or transfer your shares to a partner, our firm will be there to guide you every step of the way.