There are few things in life more rewarding than starting your own company and building it from the ground up. This does mean that many business owners worry as they approach retirement as it can be difficult to let go and you will want to know that you are leaving the company in good hands. So, what are a few options for what to do with your business upon retirement?
Selling the Business
The most obvious thing to do is to sell the business to another owner. If you can find a suitable buyer that you trust to steer the ship in the right direction, this can be a good option particularly because it will give you a large sum of money to enjoy in retirement. Keep in mind that if you have family, they won't be able to have a part in carrying on the business.
Passing on to Family
Leading on from this, if you have family then you may want to pass the business on to them. This can work well because you know that you can trust family and you can spend time training them before you retire, plus continuous money will be brought into the family rather than a lump sum payout. If you do need a lump sum once you retire, keep in mind that you can apply for an equity release from your home if you are over 55, which could be a good option.
Check Your Pensions Growth
It is also important that you make sure that you will have the money that you need to enjoy the kind of lifestyle that you want in retirement. Hopefully, you will have been paying a good amount into a private pension over the years and you should check this to make sure that you are in a healthy financial position to step away from the business and to stop earning.
Consider Running Through Retirement
Following on from this, another option is to keep running the business through retirement. For many people, the idea of retirement is boring and you might want to continue with ownership in order to stay busy and to keep money coming in. You could always take a step back and use this period to prepare someone in the business to step into your shoes (such as a family member) when the time comes that you want to walk away completely.
These are a few options that you need to weigh up as you approach retirement as a business owner. You will want to do what is best for both yourself and the business, which can be a difficult decision and many find it hard to walk away completely from the business that they have developed from the ground up.