7 things every baby-boomer business owner should be thinking about right now.
If you are a baby boomer and you own a business, then the chances are you are thinking about retirement and either are currently or will be putting your business up for sale. It’s very easy as a business owner to think about the ‘end-game’ of the exit process, but how many of you are preparing your business for sale right now?
For some baby boomers, they are ready to step-away from the business whilst reaping the rewards they’ve generated, this might mean you need a solid exit strategy. However, it might mean that you need systemised processes put into place, so that you have faith your team can maintain operations without you.
When you plan your retirement, there are a daunting amount of tasks to think about, so we have pulled the 10 we think are most important for you so that you can start planning for retirement now.
1. Conduct a thorough systems review.
Overtime, businesses become overburdened and inefficient processes begin to creep in. To ensure you are running the most efficient business possible you need to ensure your processes are as effective as they can be. This includes looking at your existing processes, the technology used and the staff that supports your operations.
You might be thinking that systems can be the next persons problem, but you will be putting your best foot forward for sale if your business runs like a well-oiled machine.
2. Invest in an organisational review
You need a functional organisational chart that visually defines your departments, key functions, roles and responsibilities. This is your opportunity to define clear roles and responsibilities so that you can ensure you are handing over a business which has the right people in the right seats.
By having a clear organisational chart, your business will be structured in a way that is more sustainable, scalable and ultimately, saleable. If you want to find out more about improving your operational structure, please click here.
3. Ensure you have a strong succession plan in place
A carefully considered exit strategy reflects the hard work and capital you’ve invested in your business. It enables you to clarify what you want for the future and helps you to define the steps required to turn that vision into a reality, while taking into consideration your business, personal and family expectations.
If you want to know more about the importance of having a succession plan, please click here.
4. Have your affairs documented and in order
We all know we need to have our affairs documented and in order, although it still seems like such an onerous task. However, do imagine the peace of mind and the time you will save when you have all your essential documents stored in a central location. Although you aren’t abnormal if you find it unpleasant to think about the possibility of death, advance planning can reduce potential distress for loved ones who will be responsible for managing your affairs.
5. Consider developing a governance plan
Effective governance is the cornerstone to business success and longevity. Good governance is about structuring, operating and controlling a company with a view to achieving long-term strategic goals for shareholders, creditors, employees, customers, and suppliers.
In short, good governance exists to add value to a business, big or small, whilst also helping you to effectively execute your succession plan and offering you the ability to step back from the business and enjoy the fruits of many years hard work.
6. Ensure your family benefit from your wealth, rather than HMRC
Ensure your loved ones and beneficiaries are supported during the difficult time of dealing with an estate. This includes working with an accountant and an advisor (us, ideally) to consider your Inheritance Tax plan (IHT) to ensure you are saving on your IHT liability and passing on as much wealth as possible.
By letting us handle your will and probate reliably, confidently and professionally- you can be rest assured that your estate will be distributed as per your wishes and your family will not be required to pay any more tax than necessary. Click to find out more
7. Get your pension plan sorted.
For many years, pensions had a bad press and many people gave up putting money aside for their retirement in the form of pension plans, choosing instead to look at other ways of providing for a “retirement pot”, be it property, direct equity portfolios, ISA’s etc.
Since the new pension freedom rules were introduced a few years ago, which increased significantly the flexibility around personal pensions (especially the drawing down in retirement), personal pension plans are making a comeback and are once again becoming an integral part of retirement planning. Click to find out more
We can help you to achieve any or all of the above. Our specialists in wealth management, probate and estate management, inheritance tax planning and more, are on hand to help you ensure you reap the rewards of your business. If you need advice on any of the above, please email firstname.lastname@example.org or call us on 0208 551 7200
Written by Ashlee Bloom