How Much Cash Will You Need From the Sale of Your Business?
How much cash will you need from the sale of your business to enjoy a financially secure post-business life? Most business owners do not know the answer. We recommend you work closely with a financial advisor to set a realistic assumption for a rate of return on your investments. It's important to understand the life expectancy numbers for you and your spouse, and to establish a post-exit annual income amount to determine what you will need to enjoy the retirement you deserve.
As a business owner, your "resources" are both in the business and outside of it. You need to know the value of each so you can then determine if there is a gap between the amount of money you will need in the future and what you have today. This gap must be quantified, and you must create and implement a plan to close that gap. Most owners use an experienced financial planner to help with this project.
Exit planning takes time if a business owner wants to leave on their own terms. This planning process begins when owners understand their ultimate objectives and what they have to do to reach them.