here is a strong likelihood that the timetable you have in mind for a future business sale may not come to pass right on schedule. It will likely happen sooner or later than your plan. The time spent preparing for “worst case scenarios” will position you to save time, money, and legal problems. This time investment will help you to avoid stress, heartburn, the loss of your “401k” retirement plan. Below are some scenarios that could cause a major course correction. Do you have an exit strategy that addresses these potential scenarios?
- You become burned out, go through a divorce, or a health crisis.
- You want something more challenging, more fun or less stressful.
- You run short on working capital.
- Your business needs new skills, a new approach or resources you can’t provide.
- Your partner wants out of the business, dies or becomes disabled.
- Your partner gets divorced and needs cash for a settlement.
The fact is that very few business people want to spend time considering these negative situations, but reality is that these things can happen, and you want to protect your retirement plan. Wise business owners make the time to address these issues. A wise saying is that “you shall know the Truth, and the Truth shall set you free.”
Spending time now working on your
business exit will help you plan for the unforeseen, and will allow you to build and protect your largest investment and asset; your “Business 401k plan.””