I was reading a report by the Exit Planning Institute, about a study of business owners and their readiness to retire. The result really surprised me! There were two statistics that I thought I needed to bring to your attention. These stats literally just blew my mind. I mean they are just unbelievable!
The first surprising statistic concerned 75% of business owners in middle-markets. Businesses with $10 million in $100 million in revenue fall into the middle market catagory. The study said that 75% of the business owner have NO TRANSITION plan whatsoever! In other words, they don’t have any idea what they’re going to do with their business in the future. Now, that’s just for the companies between $10-100 million in revenue. That’s not even counting the businesses under $10 million! I imagine that those numbers are even higher for the micro business owners.
Another statistic which really blew my mind, I mean, I had to pick my jaw up off the floor! Again 75% of business owners have never done any basic financial planning. I mean we’re talking about, how much life insurance you have, how much disability insurance you have, what your estate documents look like, do you have any retirement accounts, are you saving enough for retirement, etc. Business owners are not even doing the very basic planning! Three-quarters of owners have done nothing in the way of financial planning—it is just mind-blowing.
If you’re a business owner with a successful business, now is the time to start working with a planner. Make sure your financial affairs are in order! Also, if you’re a business owner and you will want to sell your business one day for profit and retire. Now is the time to start working with on a transition plan!
I’m a business owner, I’m only 38 years old and I personally have a financial planner and I have a transition plan in place for my business. Look, you never know what’s going to happen in life. You don’t know if some fat-pocketed sugar daddy is going to come through your door and say, “Hey I want to buy this place!” So you better get your stuff together so that your business will be worth more!
Listen, if you don’t know where to start, get in touch with me. We have people in our office who can help you with your personal and business planning needs.
Life is complicated, money doesn’t have to be, let’s continue to make your life financially simple video. Make a great day!