The Plan for Yourself

As entrepreneurs, the line between business and personal goals can oftentimes blur. The passions and demands of the business typically command the time, creative thought and financial investments of the moment, and while the pride that comes with delivering a valued product or service can build a lasting business, be careful not to overlook life’s desires and realities.

Within this context, the significant life event that most careers culminate with is retirement. Having a clearly defined view of what you expect from your retirement is the essential starting point. Whether this includes exploring the world, buying a beach house, or merely providing financial security for loved ones, establishing time and financial targets for your retirement date guides what you will need when that time comes.

Once these objectives have been determined, there are two opportunities that should be considered within your long-term, financial plan.

1. Understand and Implement a Retirement Savings Account

Today, there are a number of tax-advantaged programs available for businesses of all sizes. For entrepreneurs, these plans provide both retirement saving options for staff, in many cases an expected benefit that prospective employees will look for, and for an owner.

For solopreneurs, plans like SEP-IRAs and Self-Employed 401(k)s can accelerate the growth of, and diversify, an owner’s retirement portfolio. For service professionals, in particular, these programs can provide exceptional tax benefits and allow retirement contributions up to $53,000/year.

For businesses with up to 100 employees, Simple IRAs are an alternative retirement option that avoids the costly administrative fees that can accompany standard 401(k) programs. Each program has specific rules that govern their use, so working with a financial services professional to understand which program is right for your business is advised.

2. Maximize the Value of Your Business

There are many options available for transitioning ownership of a business. Any exit strategy should begin many years prior to an actual sale. Understanding your personal preferences for managerial transition and how your business will complement your retirement plan is important.

From a financial perspective, a third party valuation will give you a realistic view of what you can plan for your business to provide. It is important to note that any initial valuation is representative of a moment in time, and in this discussion only provides a basis from which to move forward.

Establishing a strategy to achieve your desired valuation comes next. Financial benchmarks provide a great complement to the Valuation, highlighting opportunities for operational improvement.

From these analyses, your overall plan will emerge, and then it all comes down to execution. I’m interested in all constructive thoughts on the topic, so please share/comment as you see fit.

For a confidential conversation on business valuation, financial benchmarks or exit strategies for your business, please email me at

This publication contains general information only and FocalPoint is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services.


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