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RETAILOBSERVER.COM SEPTEMBER 2023 50 F or a number of reasons, it's important to have a solid grasp of your company's value. At the top of the list, understanding how much your company is worth can give you peace of mind. It's comforting to know, when you are ready to sell or at least transition your company to the next generation, what you can expect to have in the bank heading into retirement. The last thing you need is to be off in your valuation, expecting $X+ when your company is actually worth $Y-. Too many times I've seen an owner who is 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 it comes quicker than you think. There are five basic questions that 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 for you 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 in on that last question for a moment. 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 these 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 isn't on your side, there's no better time than right now to start putting a plan together – or 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 that process. We can provide you with the assistance and guidance you need to put a proper plan in place for the next chapter in your career and life. Please reach out to me directly, and let's put a plan in place. Contact me at 901-351-7553 or rick.bellows@nationwidegroup.org. DO YOU KNOW WHAT YOUR COMPANY IS WORTH? Rick Bellows Business Trends Rick Bellows, Manager of Business Continuity, Nationwide Marketing Group RO