For more information please ring Steve Brown on (01474) 853 856 or email: email@example.com
Have you thought about what will happen to your business when you retire? Are you concerned about funding your retirement?
Accountants 4 Construction Consultants can help you identify what you want to achieve and give you practical advice on how to achieve your goals.
Some of the issues to consider are:
Do you have a successor?
One way for you to retire from your business is to have somebody ready to step into your shoes. Many business owners find themselves in a situation with no suitable partners or employees who can take over. To resolve this you need to start planning well in advance of retirement including considering whether any of your current staff would make a suitable owner, and whether they are interested in taking that step.
You should encourage this person to learn all the necessary skills they will need to successfully run your business and be helping them to build a successful portfolio of their own clients. A share of the profits they generate should be used to help them pay you for the business when you do retire.
Accountants 4 Construction Consultants can help you develop strategies and an action plan to find and develop the right successor with a reward structure that is beneficial to both sides.
Do you have sufficient funds for your retirement?
We find that many people do not consider how they will fund their retirement plans until they have an idea of when they would like to retire. By this time it can be difficult to ensure you have enough of a provision to cover your living costs. With discussions on whether a state pension will exist in future it is more important than ever to plan for your retirement as early as possible.
Many business owners plan to sell their business as a way of funding their retirement. This can be risky as selling up is never easy and always takes much longer than expected. This could mean that you end up working years longer than you expected.
With the recent recession and the dramatic fall in pension funds people are understandably reluctant to invest in a pension. However, there are many options to consider with pensions and other retirement plans that you may not be aware of, which would be much more attractive to you than the traditional pension plan.
Accountants 4 Construction Consultants can assist you with planning for your retirement, with expert advice from our independent financial advisor associates.
Selling your business
You have put in many years of hard work in order to grow your business but how can you get the best price when you decide to retire or sell? The following are some of the key things to consider:
- Ensure the business depends on you as little as possible for its day to day running. At this stage of the life cycle of your business you should be able to delegate the majority of work you need to do to your employees. This is attractive to purchasers as there is less risk of a fall in profits as a result of your exit. Find out about our less dependant service.
- Keep good records. A purchaser will often ask an accountant to carry out due diligence work on the accounts and records of the business. By making it easier to connect the accounts to the supporting documents such as invoices the accountant will be able to provide the best assurance that your business really is as good as it looks on paper.
Accountants 4 Construction Consultants can give you advice on how to improve your accounting records to provide the best possible assurance to any prospective buyer.
- Plan ahead. You should be thinking about the sale several years before you intend for it to take place. This can allow you to be ready at a time when it would be most beneficial to sell. Selling after a particularly good year will provide stronger figures on which a purchaser will determine what they are prepared to pay. The strength of the economy also affects the value of your business and you should try to sell during a period of economic growth and lower uncertainty
Accountants 4 Construction Consultants can provide you with assistance on planning for the sale so that everything is in place to sell at the right time.
For more information please ring Steve Brown on 01474 853856 or email firstname.lastname@example.org