Around the Web: A Week in Summary
A recent article from Forbes.com entitled “What Is The Right Type Of Business For You To Buy?” provides helpful tips for a business owner to find the right business for them.
Buying a business can be a massive step in your life. Choosing the right business for you is incredibly important because it can br the difference between financial success and failure, and between happiness and misery. While it is a popular piece of advice to go into business doing the thing you love most, this is not always the best advice. There are certainly many things that factor into making a purchase that is worthwhile. However, the most important factor is based upon your skillsets. If you choose to purchase a business based on nothing else, buy the one that thrives based on your current expertise and what you are best at. Nothing else will factor in to your success more.
A recent article from Lombard Odier entitled “Maintaining a comfortable lifestyle after selling a company” uses an example to explain the process for allocating assets in the most efficient manner possible in order to obtain the best return after taxes.
Making the transition into retirement as a business owner can be less straightforward than for someone who has worked for a company that they wish to retire from. When taking this step as an entrepreneur it is important to work with an experienced advisor who can help you become very clear on your post-exit needs. In order to maintain a comfortable lifestyle after the sale, it is important to consider the following things as you reallocate your current assets:
- What debts do you currently have? Can some of them be paid off or down?
- How much do you need to maintain your current lifestyle?
- What are your post-exit goals and aspirations? How does money facilitate these goals?
- What are the tax implications of the different sale structures and which one is most beneficial to your needs?