When are you going to exit your business and how? These are two fundamental questions which business owners put off because they don’t know how to start planning. Instead they make excuses about being too busy, or about never wanting to retire. The danger is you get to 65 and still have no idea. I even hear business owners saying that they will draw an income from their business to see them through retirement and never sell their shares. Great in theory, but a huge risk and often isn’t thought through properly.
There is no better time to start planning than the present. Start by thinking about your goals and ask yourself this question, “If you were financially secure and money was never going to be an issue, what would you do?” Your answers to this question will give you more of an understanding of what is important to you and what you want to plan for. You might not be able to do everything on your list, so prioritise and work out the cost. Then look at what you have built up already in the form of savings, property and pensions, and factor in a realistic valuation for your business if appropriate. You now have the start of a financial plan!
Jamie Bogle – Co-Navigate Limited – www.co-navigate.co.uk