Preparing Your Business for Your Retirement

by on May 17, 2019

When a business owner is approaching retirement, they may be faced with a number of dilemmas. After putting so much of their professional life into building a successful business it can be difficult to take a step back and let go of such a personal investment. Some business owners may decide to sell their business or close it down and liquidate its assets as part of their retirement plan. But more and more are now handing the reins to an existing management team and relying on the continued successful operation of the company, and its profits, to help finance their retirement.

There are a number of things a business owner should consider before they retire to ensure that the team that they leave in place can carry on their hard work and protect their lifetime investment. If your retirement involves repeated visits back to the business, then it is not really a retirement. With some careful planning, you can ensure that you do not spend your retirement going back to work to solve problems, and instead enjoy the fruits of your lifetime’s labours.

Get the Books in Good Order

When handing control and responsibility over to your team, you need to give them the best opportunity to succeed, and also ensure they have accountability for their financial decision-making. By having your businesses accounts in good order, with little or no operating debt and good cash flow, you are creating an opportunity for their success.

Invest in Bespoke Management Training

You will have built a good team around you in the process of building your business, but none of them have the experience of your doing your job. Many businesses are turning to bespoke management training courses to help their existing management team gain the skills they need to operate in the absence of a key person. Companies that specialise in bespoke management training, such as The BCF Group, can work with you to tailor a bespoke management training course to suit your business. A number of their courses have been accredited by the ILM, so you know that the courses are to a high standard.

Plan a Transition Period

It is good to have an acknowledged transition period within your business, one that involves customers as well as your team. This is a good chance to introduce your management staff to suppliers and customers and to make sure the business relationships you have built over time continue. You can also use this as an opportunity to create a line of contact with major suppliers or customers, in case they have concerns about your business’ operations or the management team after you leave.

With some diligent planning in place and managerial staff that are prepared and trained to take the reins of your business, you can retire in confidence knowing your legacy is secure. A good business should be given every opportunity to thrive, and you owe it to the professional investment you have made over your working life to reap the benefits from what you have built. Your business, operated well, can be the ticket to a healthy, wealthy retirement.

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