BUS040 Don’t bank your retirement on your business (540 words)

This article discusses the risks business owners face if they focus solely on the sale of their business to fund their retirement dreams. It provides steps to take to prepare for the sale or succession of your business, including building superannuation.

Many business owners make the mistake of ignoring superannuation in preference for re-investing spare funds in their business, hoping they can then sell at a premium when it comes time to retire.

At some magical time in the future, they dream they can sell their business for their asking price, bank a cheque, turn the lights off, and walk away. Sounds perfect, doesn’t it?

In reality, they are embarking on a very risky exit strategy.