One of the biggest mistakes a business owner can make
This was always a realistic plan but when it was time for him to sell there were no buyers. The business was almost given away for $1,500,000.
It is normal for business owners to overvalue their businesses. Formulas and assumptions vary and ultimately a business is only worth what a buyer is prepared to pay for it.
Business owners need to diversify and save for their retirement in other areas outside their business. The investments need to be flexible but should only be dipped into as a last resort.
You probably do a business plan every couple of years, but take time out and do a personal retirement plan as well.
We have experience with developing a retirement strategy and protecting shareholders in the event of one of the key partners not being able to work due to poor health.
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