Many Americans are adjusting to the idea of "going it alone" when it comes to retirement savings, as traditional programs like pensions are rolled back, and the future of Social Security is increasingly uncertain. But for small business owners, managing one's own retirement plan has always been a fact of life. Though entrepreneurs know they're solely responsible for their own retirement, setting up benefits and long-term financial planning are often put on the back burner to focus on more critical issues aimed at making their business survive and thrive. How can today's small business owners lay the groundwork for building a robust financial future? Here are some tips to consider as you work to establish a realistic retirement strategy while nurturing a growing business.
Put saving on autopilot. When you're living and breathing your business day in and day out, it's easy to overlook retirement planning, which could be 20, 30 or even 40 years down the road. Though it may be difficult to articulate your future needs, you can get started by making automatic contributions to an IRA or 401(k). Common wisdom suggests putting away 10 to 15 percent of your income if you can swing it. Also consider working to eliminate personal credit card debt and build up an emergency fund to cover any unexpected financial needs.
Hedge against the future value of your business. Many small business owners believe their business's current or future valuation are assets they'll have access to once they retire. They expect their business to keep growing, or plan to sell the company and live off the profits. In fact, the Spark 401k Small Business Retirement Planning Index found more than half (52 percent) of owners with revenues of $500,000 or more say they plan to sell their business to fund retirement. But this approach comes with a number of risks, like timing your sale to when you can get maximum value and when you're ready to retire. There are a number of factors that drive business valuation, and since no one can predict how future markets or industry trends could impact your company, it's unwise to consider it the centerpiece of your nest egg.
Seek financial services. The easiest route to go when planning for the future is to have experts tell you the true state of where you are with your business and assist you in the process of getting your financial security in order. If you’re a little unsure about how to plan for the future, what to do with your current small business, and whether or not it’s time for growth, SA Capital Partners has decades of experience to draw from to assist you in planning and preparing for the future.
About SA Capital Partners: SA Capital Partners is an innovative financial services firm that specializes in mergers & acquisitions advisory and capital raising for lower middle market businesses. We aspire to give all the tools necessary to complete any transaction. SA Capital Partner’s financial services industry specialists provide comprehensive, integrated solutions to banking transactions. Our breadth of services and industry knowledge allow us to understand each client’s unique business needs. Our goal is to make all financial services available to every small business. Website: www.sacapitalpartnersllc.com Phone: (212)-235-2761 Email: info@sacapitalpartnersllc.com #sacapitalpartners #sacapital #sacapitalpartnersllc
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