I was reading this report by the Exit Planning Institute, about a study on 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 seriously unbelievable!
First is that the 75% of business owners in middle-markets. So that is those between the income of $10 million in $100 million in revenue, 75% of these individuals have NO TRANSITION plan whatsoever!! In other words, they don’t have any idea what they’re going to do with their business. 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 those individuals, which is really sad.
The other 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, etc. I mean very, very basic stuff guys and that is still 75%!!! 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 have you 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, and I’m only 38 years old 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, give me a call. Let me know what I can help with. If I can’t help, I certainly have an army of people I can contact to help you the business owner, drive up your revenue! Life is complicated, money doesn’t have to be, let’s continue to make your life financially simple video. Make a great day!