When Should You Plan to Sell Your Business? (Hint: Right Now)

How do you feel about retirement? Are you prepared to sell your business? Know how much money your company is worth? Can you sell your business at all?

In a recent survey of over 3,000 contracting company owners, less than 25% were confident about retirement, and only 7% had a plan to sell or transition their company.

A lifetime of hard work should be met with well-deserved time on the lake, on the course, or chasing the grandkids. But too many contractors are so busy chasing the work they aren’t planning for life, NOT chasing jobs. Most banks are clueless about the trades or primarily interested in serving the biggest companies, and most financial advisors are more concerned with their income than yours. This leaves most contractors without a game plan.

Don’t let this happen. Here are three fundamentals to develop right now (regardless of your age).

  1. How do you want to retire realistically? Don’t be afraid to establish a clear picture of the lifestyle you want to live and the money it will take to get there.
  2. Start saving and investing in something now. If you had invested in an S&P Index Fund 10 years ago, even with all the volatility of late, you would have tripled your money.
  3. Build a business that has serious value. Understand what kinds of trades companies sell and sell for big bucks. Then develop a plan to build that business.

From a recent survey:

“I had a few employees and was going from job to job. I had a good flow of customers, a few employees, a nice house, a boat and the bills were getting paid. I also had a few thousand in savings. But at 35, I had no idea how to take on college savings, retirement or one day selling my business. I decided to stop running from the issue and ran into it instead. Two years later, I pay less taxes, make more money, and have a business a competitor has already asked about the possibility of buying. My advice: get help and get it done.”

If you need help with insights or a model to do this, we have a Facebook group (which some of you may have come from to read this) that we invite you to join. No sales pitches, just building a community of contractors where we can all discuss and share financial best practices, tips and tools to help you become a multi-million dollar contractor.

Check out the group here and if you have any questions about developing real plan to retire with confidence and/or sell your business, give us a call. Sadoff can help.

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Ever wonder how you can get to retirement?  Even if that day is far off, planning for the day when you sell your business starts today.

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