As you near your retirement age, you might be wondering what is going to happen when you decide to walk away from your business. Though you should have made this part of your business plan all of those years ago, you might not have thought about this yet.
So, what should you do with your business when it is time to retire?
Sell your business.
If you decide to sell your business, you will need to work on a plan of succession. A plan of succession is a written plan to get the new owner ready to take over your business. He or she will get to meet your employees, learn how your business works, and also meet your customers. If you take the time to go through all of this with your buyer, your business has a better chance of lasting for a long time without you.
Involve your children.
Your children may want to be involved in your business in some form. While some want to take over completely, others are content to help you out so that you can scale back on your involvement in the business.
However, it is important that you don’t force your children to take over your business. They might rebel and it can get quite messy. Some parents try to cut their children off just so that they stay in the family business. It often doesn’t end well.
Dissolve your business.
If you don’t want to sell your business or hand it over to your children, you are going to need to dissolve your business. When you do so, you are legally closing your business. This also means that you will no longer be liable for your business.
If you are planning ahead or thinking about retiring, there are a few options. If your children don’t want to keep it going, you may want to sell it or just close it down.
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