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Mistake #4 -
Retiring too soon
Business owners
often have problems deciding when to retire. Sometimes they
retire just because they can afford to, with little thought
given to what they will do in retirement. Other times they
retire because they are tired of some part of the business.
Employee problems are at the top of that list.
In some cases, the
allure of retirement wears off after a year or two. For some
people, a fishing trip or a round of golf isn't as much fun when
it's not a break from running the business.
Retiring too soon
isn't limited to just business owners. Of the retirees who
thought they retired at the wrong time, one poll showed that
three-fourths thought they retired too soon and only one-fourth
thought they retired too late.
We often get calls
from retired former business owners who are bored and are
looking for a business to buy. The danger here is obvious.
Anxious to get back in action, the former owner can end up
risking too much of his retirement nest egg in a new business
that he doesn't really understand.
In many cases
Centering has helped owners make sure they are not retiring too
soon. We've developed strategies that allow them to try a period
of semi-retirement. These strategies have two primary benefits -
they help the owner understand what life will be like when he's
completely left the business, and they show prospective buyers
that the business can survive without the constant attention of
the current owner.
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