Retiring as a Small Business Owner

business owner retirementTo be successful as a small business owner, you generally need to pour every ounce of yourself into your business. You need to remain hyper-focused on succeeding every day, with long-term planning revolving almost exclusively around the viability of the business. After several years in business, when a more productive model is in place and profits are beginning to grow, then some small business owners begin to think about current income, personally, as well as longer term income and retirement planning. But for many, that last piece, the retirement piece, is ignored. For a business owner, retirement often feels like something a million years away and as such putting money toward it that could be used to grow the business doesn’t make sense.

Unfortunately, this mindset leaves older small business owners in a difficult place. While the business may be a viable asset which can be sold when the owner is ready to retire, that may not be enough to comfortably retire. Or, if the business is based on a specific skillset or network of connections, or if the market changes, the business may no longer hold value. There are too many reasons to list why a successful business of twenty or thirty years may not have value, which means the business itself is not a practical retirement plan. And while the gamble could pay off, the risk of it not is real.

So with no pension, no 401k, no guarantee of any value to a business, and no social …