With small business owners busier than ever before, planning for retirement can often get placed on the backburner.
According to a recent article from the Wall Street Journal, many business owners think the eventual sale of their business can entirely fund their retirement. But, it can be especially difficult to place a future value on your business, especially if growth is largely dependent on a single owner.
Even though you may not be ready for retirement today, there are some actions you can start taking to prepare yourself:
- Groom your employees or managers so that you can get more leverage in your business - no one will want to buy a business if you are the main rainmaker
- Start understanding your living costs - if your business pays for expenses like your car, computer or travel expenses, those costs will become yours once you sell your business
- Start taking advantage of financial products - like a 401(k)- to save for retirement. You can save as much as you want annually, but you should still have a separate income stream for yourself.
What steps are you taking to start planning for retirement?
Tell us in the comments.