Retail Observer

RETAILOBSERVER.COM AUGUST 2023 50 I t's important to have a solid grasp of the value of your company, for a number of reasons. At the top of the list, understanding how much your company is worth will give you peace of mind. It's comforting to know, when you're ready to sell your company or transition it to the next generation, what you can expect to have in the bank as you head into retirement. The last thing you need is to be way off in your valuation, expecting $X+ when your company is actually worth $Y-. Too many times, I've seen an owner who's ready to retire and is banking on the sale of his company to be the major source of retirement income. We get so caught up in the everyday activities and responsibilities of running the company that we don't take time to look at the bigger picture. I get that it is hard to think 10, 15, or 20 years down the road, but I promise the years will go by quicker than you think. There are five basic questions you need to ask yourself when it comes to planning for the sale of your company ahead of retirement. While the questions themselves are important, it's arguably even more critical to be honest with your responses. 1. When would I like to retire? 2. What assets or income will I need in retirement to live the life I want? 3. Is there any debt associated with the company? 4. What are my health care needs/requirements? 5. Have I considered estate tax planning? Let's focus on the last question. As part of your estate planning, if selling or transferring your business is a portion of what you need for your retirement portfolio, you need to consider the full scope of what your business is actually worth. If you need $500k out of the business to meet your retirement goals, then what does a $500K business need to look like? What type of top-line revenue do you need to be doing each year? What does your bottom line need to look like? Is your company something someone would want to buy? Do you have the people, processes, and systems in place to allow the next owner to maintain a successful operation? The good news is, if you're early in your career, time is on your side. It's never too soon to start addressing those questions in order to put your company in a position to deliver maximum value. Build the company you want to and will need to for your retirement. On the opposite end of the equation, if time is not on your side, there's no better time than now to start putting a plan together – or even to assess your current plan to ensure that it's putting you on the best path forward. Nationwide Marketing Group is here to help throughout the entire process. We can provide you with the assistance and guidance you need to properly plan for the next chapter in your career and life. Please reach out to me directly – let's put a plan in place. Contact Rick Bellows, 901-351-7553, or rick.bellows@nationwidegroup.org. DO YOU KNOW WHAT YOUR COMPANY IS WORTH? Rick Bellows Succession Planning Rick Bellows, Manager of Business Continuity, Nationwide Marketing Group RO

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