…..it is probably too late to start thinking about succession planning or a retirement sale if you want to retire at 65.

Most people look forward to a happy, relaxing and prosperous retirement engaging in travel or hobbies that there was no time for when running a successful business.

If you are hoping to retire in time to watch the Olympics in London the planning should start now.

Ask yourself the following questions:-

• What happens to my company when I retire?
• Will it prosper or die?
• Who will take over the running of my company?
• How capable of running it are they?
• How much is it worth?
• What can I do to maximise the value of my company?

You might dream of passing on to your children a successful profitable business but did you know that only 30% of family businesses successfully reach the second generation and only 15% a third generation. Perhaps a financial legacy from selling the company would be best for all the family. Maybe your sons or daughters have abilities you didn’t and can drive growth but how do you help them afford to buy you out of the business? The best solution might be to bring in a new person with the skills to make the business grow while your children or chosen successors enhance their experience through working with someone new.

For a successful sale/succession, good forward planning should ensure a smooth transition together with the most beneficial financial solution for all concerned. Experience shows that such planning is rarely given sufficient time resulting in high levels of stress which inevitable impacts negatively on business performance and with it the value of the business itself.

Major change of this kind is a challenge to any SME and Boldoak has partnered with The Mercantile Group to offer SMEs the support they require for preparing and planning for major changes in their business such as retirement or sale.

Today you will know that planning your retirement is important but it will not become urgent until it is maybe too late. Almost every small business owner is too busy fire fighting to have the time to review strategy and planning properly. External experienced help at this time can be invaluable and prove to be one of the best investments you ever make.

Is this stating the obvious?