rewire

many ask the question How do you start out but few ask how do you end.I was talking with my financial advisor about retirement and we started talking about an "exit strategy" for me and my business. The financial goal was fairly easy to map out but I had not givin much thought to how I would end my relationship with the business.
Although still a few years away its never to early to start thinking about it

Black4Truck

Mine is simple.. keep working till I stop breathing

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MDShunk

Don't forget to save out half for your future x-wife.

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dawgs

In my area NECA is putting on a seminar on that next week. It will be about transferring your business, or what happens if you pass on and so on. Can you sell out to any of your employees? Do you have kids interested? If not I would get with your lawyer and accountants find out the value and advertise to sell. If that dont work just auction everything.

Peter D

Are you insinuating that you're going to have a future ex-wife soon?

chenley

There's a one man show that retired here about 7-8 months ago. I still see him driving the van around, I figure he's just down to warranty work and small service jobs.

Another one retired about 7-8 years ago, sold his business on auction and retired in Florida. The business he had is still going strong.

Rudeboy

My boss from the first shop I worked for was in his late sixties when I started so now he is pushing eighty, still holding it down. His younger brother has taken care of running all the jobs since before I was there. Boss just deals with all the bids and office stuff but he just keeps on going. I'd probably still work for him had I not moved away from the area. It's a small shop but a good one to work for. he'd work in the field once in a great while and was friggin awesome to learn from, all he needed was his linesmen and a pocket knife.

randomkiller

You must have conferred with one of my exwives, that's their philosophy as well.

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Speedy Petey

Yeah, that's about right.

hardworkingstiff

Yea, just cut it back to about 10 hours a week.

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rewire

for many this wont be by choice.

NolaTigaBait

I'm 28 and I just started saving. I got a traditional IRA and my goal is to put in the max tax free amount each year which is 5k. I just bought a house, so it's going to get very difficult to keep that up.

william1978

A Johnny Paycheck song comes to mind.

wildleg

exit strategy ? save the last bullet in case you need it.

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MDShunk

An auction or a sellout to an interested employee (or group of employees) seems to be the most popular route, in my observation.

There was one reasonably large contractor in my area that sold out to another local contractor. He now works for them on occasion as an estimator.

Many guys do not structure their business so that they're worth any more than just their assets. Subtract the owner, and the business is often worth exactly as much as the physical assets are worth. Only defined systems give the business value beyond its assets.

__________________
-Marc, ABC, XYZ, PhD, 1-2-3

-Someday, I'll wear pajamas in the day time.

paul d.

i would think your CPA should be able to offer some good professional advice. i mean a REAL CPA. not some half-assed , hack, bro-in-law type. oh , and get a will.

rewire

if I want the business to survive beyond me I will need to incorporate.I will probably set it up with me owning the majority share and then the remainder divide equally with the sons.They then can buy my share of the business.

RIVETER

ReWire, I don't know how big your business is; Do you have numerous employees Is it a business you would want to buy if you were younger. Sounds to me like you are making the right step in consulting an advisor. Other than that I would have a spectacular web site touting my company...that in itself makes a business attractive. I've seen small businesses "go out" and the website was worth more than the business.

Absolutetruthz

That is a wise strategy.

Proverbs 24:33-34 "A little sleep, a little slumber, a little folding of the hands to rest, and poverty will come upon you like a robber, and want like an armed man."

Mach

I don't know if I would advertise an Exit Strategy to much. The owner of a gym was telling everyone he was selling the gym and he is not sure what the new owners will be doing, His memberships dropped way down. No body wants service from an organization that won't be around.