According to recent research by The American University, the nation’s largest non-profit educational institution devoted to financial services, the vast majority of small business owners are completely unprepared to transfer (sell) their businesses upon retirement. Of the small business owners surveyed, only 1 in 10 women (10 percent) and one in five men (20 percent) have a written plan to transition their business upon retirement…even though most of the respondents are very or completely dependent upon the sale of their businesses to fund their retirement.
American College’s Mary Quist-Newins warned, “Small business owners need to do more now if they hope to achieve financial security in later life. Without adequate preparation, they could see their ‘golden’ years turn into lead.”
Exit planning can help business owners plan for retirement, and avoid the prospect of having one’s golden years turn into lead.