Nearly 80% of business owners have no written transition plan, 50% have not planned at all, and 94% of owners have no plans to do anything post-business.
Are your plans in order? Or are you one of the many business owners who are flying blind into one of the biggest decisions of their lives?
The Planning Gap Many Business Owners Miss
Successful businesses run smoothly because all aspects have been planned out. Many business owners, however, fall short when it comes to what they will do after they transition away from their business.
In my experience, the most successful business owners have a written exit plan, a personal financial plan, and a life plan. This planning trifecta is critical for a business owner to create their ideal retirement.
I have unfortunately seen very wealthy people be extremely unhappy in retirement because they planned how to retire but not for their life after retirement.
Are You the CEO of Your Life?
A rich life is well balanced. That means being intentional about how you spend your time, both prior to the sale and after. This attention to life prior to the sale will help set you on the path to success and feeling fulfilled in your life after retirement.
What Your Post-Business Transition Life Plan Should Include
A comprehensive life plan thoughtfully addresses each of these essential areas:
- Family considerations – significant others, immediate and extended family members
- Emotional wellbeing – mental health, resilience, positivity
- Intellectual growth – mental stimulation, education, creativity
- Financial security – money management, security, freedom
- Physical health – wellness, fitness, energy
- Environmental factors – home, workspace, neighborhood, vacation destinations
- Spiritual fulfillment – faith, values, inner life
- Social connections – friendships and community
- Vocational purpose – work, career or business purpose
- Recreational pursuits – hobbies, fun
- Impact opportunities – mentoring, philanthropy, volunteering, advocacy
Your Life Plan Drives Your Financial Plan
Selling a business without a written plan for life post-transition is like booking a flight without knowing the destination. You will end up somewhere, but will you land where you really want to be? Will you step into your next chapter with purpose or regret?
At Harford Financial Group, we practice holistic financial planning that supports your life—starting with formulating your life plan. Then we build a plan based on your goals that considers the five pillars of financial planning: retirement income and cash flow, asset management, asset protection, taxes, and estate planning.
As Certified Exit Planning Advisors (CEPA®), we specialize in helping business owners identify what their business sale proceeds need to provide on a net basis to support their goals and determine any wealth gap—the difference between what you have today and what you need.
Ready to create your post-business life plan? Contact Harford Financial Group to start planning for a fulfilling retirement.