Retirement isn’t something that a young home service business owner thinks about when starting on the exciting path of entrepreneurship. Indeed, someone might say that an entrepreneur can’t retire. Rather, he/she just moves on to pursue new dreams and opportunities. However, you may want to stop working and reap your rewards someday. So, will your home service business allow you to retire? 

Reasons to Retire  

An entrepreneur may decide to retire due to poor health, dealing with a business that has lost its motivation, facing a business that seems to be no longer worth the struggle, reaching a desire to pursue other opportunities such as community service, dealing with family needs, or seeking travel and relaxation opportunities.   

Reasons Not to Retire Too Soon 

Here are four reasons not to retire too soon. 

First, you may run out of money. Keeping a business going as long as possible provides financial protection against unexpected occurrences including illnesses. 

Second, you’ll likely still need health insurance. 

Third, you may get bored. Running a home service business can be challenging and fulfilling. Retirement can eliminate a stimulating and vital sense of purpose and progress.  

Fourth, research shows that retiring too early can shorten your life span. 

Will Your Home Service Business Allow You to Retire?

Retirement, like every other important phase of life, takes planning. The age-old statement, “if you fail to plan, you plan to fail,” holds true for retirement. You can retire successfully if you follow these steps: 

  1. Make eventual retirement planning a priority. Don’t let it sneak up on you without plenty of serious thought, starting as early as possible. 
  2. Set some concrete goals and write them down. Where do you want to end up? What are your financial needs and goals? What are all the lifestyle considerations facing you? What do you want to do with your time eventually? 
  3. Carefully prepare for your retirement financial situation. That can include setting up a Simplified Employee Pension (SEP) IRA, a Savings Incentive Match Plan for Employees (SIMPLE) IRA, an individual 401(k), or a traditional or Roth IRA. Set aside the right amount of funds for retirement. 
  4. Develop an eventual exit strategy, long before that time arrives. Options can include selling the enterprise to an outside buyer, transferring ownership to a family member, or selling the business to a trusted employee. Consider if or how much you may want to be involved in the business in the long term. Develop a plan to help you step out of the business without disrupting the business. ]
  5. Develop a succession plan so that you can comfortably feel that leadership is in place for you to move forward with retirement.  
  6. Build your support team, not only to continue successful current operations but also to make the business attractive to future owners. Your support team can include a financial advisor, a business attorney, and a CPA. 
  7. Carefully appraise the future value of your business. 

It is important to seek experienced coaching advice to help you grow your business as well as to help you eventually to step away from it.

Get the Coaching Your Business Needs

If it doesn’t look like your home service business is doing well enough for you to eventually retire, now is the time to make some changes. Contact Blue Diamond Consultants, doing business nationwide, for experienced and trusted coaching services. Let’s get your business growing so your future retirement can be secured.