An extraordinary number of self employed people began saving for their pension years ago and have completely discounted that the business they run could be worth more than all their investments combined including their house!
It may seem unbelievable to think that people are able to forget about the money time and effort they have put into their business and do not see it as a sale able asset
Many long term businesses are simply let go when the owner decides to retire. Or the business which may have been trading for decades has a run of bad luck and decides to close without any thought of a sale. Normally businesses that have not looked into having the right insurance or have not made any provision for a financial set back.
As a business owner how are you preparing for the future? You may have considered selling your business at retirement and living off the proceeds, but what are the risks in seeing out this plan if your business fails, or the future value of your business does not provide the level of income you had planned for a comfortable retirement.
Income from state pensions is simply not enough to let you enjoy your retirement with the level of financial comfort you may be planning for that’s why joining a dedicated pension scheme or plan is highly advisable.
Why not take control of you future today and take advantage of the generous tax incentives on offer?
Although dividends on shares are taxed at 10% you will receive tax relief at the highest rate on the contributions you make and benefit from any profit from the money invested in your pension scheme being tax free. Alternatively you can sell your business and release a lump of capital that can often be worth more than your pension.
How to sell your business
- Get two to three potential buyers just in case the initial deal falters.
- Stay in contact with the potential buyers.
- Find out whether the potential buyer prequalifies for financing before giving out information about your business.
For more information see How to sell your business | Guardian Small Business Network | The Guardian
This article has been written in good faith. It is believed to be accurate at the time of writing and is for information only.