Business owner, can you create an income stream for your retirement?
It seems that many of the small business owners I know have created a job for themselves in their business. In other words, they make enough money to pay their home and office bills (most of the time) and if they are really lucky, they set aside a reserve account for emergencies.
Retirement is another issue. A funny but perhaps true statement that I hear from small business owners is: “I’m going to work until I die” or, I’m going from here directly to my grave”. Unfortunalty, it may be very difficult if not impossible to work until you die. There are unforeseen circumstances that may force you to quit work: sickness, accident, family issues, etc…
In today’s economy it is difficult to save enough for a comfortable retirement. Currently banks are paying virtually nothing on savings accounts, and other forms of investment are not always secure. Many American’s were counting on their home equity to help with retirement; in most cases, that has disappeared.
On the positive side, there are two solutions that can help facilitate a comfortable retirement:
- Prepare your business for a future sale. That requires ( as I outlined in a previous blog) careful record keeping, a good reputation, and a positive growth chart, just to name a few of the requirements for a sale. The sale can create a lump sum of cash or cash flow, depending upon the sale structure.
- This method could become a “fun” challenge. What can you make, or do or????? that will generate ongoing residual income for you after your retirement. This is going to require a lot of thought. I suggest that you keep a note pad with you at all times and jot down ideas as they come. Let’s see if we can name a few such “things”: invent something that will pay royalties; write a book, song, etc, that can pay royalties; create and own an association, or “club” that people want to belong to and will pay membership dues. What needs to be improved or “invented” so that your industry can provide better services or products?
The first suggestion is something everyone should work on, the second is the fun challenge to dream about and see if you can make it a reality. Yes, send me your ideas for the second method.
The thing always happens that you really believe in; and the belief in a thing makes it happen.
Frank Lloyd Wright
Nick J. Petra email@example.com stop your procrastination and subscribe to my newsletter at www.strategicduck.com . Each month you will receive informative articles that can help change your life and guide your business.
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