Developing an identity outside of the business and finding new passions are areas that business owners don’t usually consider before transitioning. After putting a plan in place to maximize the value of the business and prepare personal finances, owners need to figure out how they plan to transition to life after retirement.
Developing a New Identity
Many business owners have identified their life through work. They introduce themselves as a business owner rather than a husband, wife or parent. Taking away the most identifiable association is an emotional step, so it’s important to have a plan in place before retirement. The plan should be discussed with a spouse and other family members to gain their support and help with the transition. Knowing that expectations of retirement may include more traveling, moving or decreased spending will also help determine retirement financial needs.
Finding New Passions
Creating a plan for the third act of life is not an easy task. Work takes up a large amount of time each day, and retirement can be a difficult adjustment to make if there is no plan for all the free time one may suddenly have. After the initial retirement excitement has passed, many people struggle to find a way to keep busy. Creating a plan around passions will lead to a happy retirement. Many people enjoy golfing, hiking, or other activities that also have a social component. There is no longer the excuse of being too busy, so this is a great opportunity to establish new healthy habits. Business owners are used to being constantly busy, so establishing a daily routine before retirement will help ease the transition.
Business transition planning is not a one-time event – it’s an entire process which takes place over several months or years. Creating a master plan that focuses on each category of the business owner’s life is the key. Learn more about Anders Business Transition Planning, or contact an Anders advisor to discuss how to develop your succession plan.All Insights