Most business owners do not think of selling their companies as "retiring". Instead, these vital entrepreneurs see selling their business as a "transition." For most business owners this does not mean slowing down or endless days of rest and relaxation. Rather they see "retirement" as a new, active stage in their lives characterized by continued personal growth, personal reinvention and new beginnings in work and leisure.
A recent survey conducted by Harris Interactive revealed that an entirely new paradigm for retirement is emerging. The good news is that many people are experiencing long, fulfilling and exciting retirements. The bad news is that many business owners will not be fully satisfied with retirement because of inadequate personal planning.
The key findings are as follows:
? The concept of retirement as a "slowing down" is obsolete. Less than a quarter of business owners surveyed agreed with the idea that retirement is for relaxing and doing nothing. Instead, respondents viewed retirement as a new adventure or chapter in life (38%) or a continuation of life as it is (40%).
? Approximately 95% of business owners expect to work in some capacity during their retirement, but said that money was not the sole motivator. Almost 50% said they wanted to work in retirement even if they received nothing at all.
? Satisfaction with retirement is directly related to how financially prepared the business owner was for retirement. Over 60% of those who said they have more than adequate resources to support themselves in retirement reported that they were extremely satisfied with retirement. However, only 46% of business owners who reported that they had to cut corners in retirement indicated that they were satisfied with retirement.
It is important to realize that historically, retirement was something that relatively few people lived long enough to enjoy. Only one hundred years ago the average life expectancy was 47 years. As a result, most people worked until they became too weak to continue. Around the turn of the century, most adults spent only 3 years in retirement before they died.
However, in the early 21st century, the average life expectancy is 76 years and the average person chooses to retire at age 65. As a result, most people can expect to spend 11 years in retirement!
It is interesting to note that the modern concept of retirement as a time of leisure, travel, family activities, hobbies, and educational pursuits is the result of the passage of the Social Security Act in 1935. With the creation of Social Security, the United States government created a financial incentive for older workers to encourage them to retire in order to enable younger workers to take their place. This was considered good national policy at the time because it stimulated economic growth and progress.
Deciding to Retire
The Christman Group has worked with hundreds of business owners who were beginning to think about their retirement. The Christman Group's independent research identified six categories or groups of attitudes that directly impact a business owner's likely satisfaction with retirement. These categories include:
Perspectives about Work and Retirement
Financial Preparation
Expectations about Retirement
Friends, Family & Community
Health Concerns
Involvement during Retirement
Predictive Model Gauges Transition Satisfaction
Using this research, The Christman Group developed a predictive model to help business owners determine if they are psychologically prepared to exit their businesses and transition into a new stage of life.
The model contains thirty-six questions that gauge a business owner's attitudes, beliefs, and values regarding retiring or exiting from his or her business. These responses can then be used to predict a business owner's subsequent satisfaction with retirement. Understanding how a business owner feels about retirement on both a conscious and subconscious level is important before a business owner makes any important decisions about exiting or retiring from his or her business.
For a FREE copy of this predicitive model visit http://www.christmangroup.com or contact the author.
Author Bio: Rich Jackim, former Wall Street attorney and experienced investment banker has helped over 60 business owners successfully exit their companies and realize their personal goals. He is the author of the recenly published book, "The $10 Trillion Opportunity: Designing Successful Exit Strategies for Middle Market Business Owners." Available at http://www.exit-planning-institute.org Rich is the president of The Christman Group LLC, a boutique investment bank that specializes in selling privately owned businesses. Visit http://www.exit-planning-institute.org to learn more.
Rich received his BA from Colgate University, his JD from Cornell Law School, and his MBA from the Kellogg Graduate School of Management. He is a sought after speaker and has either published articles or been quoted in Business Week, Chicago Tribune, Chicago Daily Herald, Indianapolis Business Journal and numerous other regional and national publications.
Lincoln Stretch rentals Alsip ..Some marine biologists feel that the concentration of dead marine... Read More
Quality control in franchising companies is paramount and all franchising... Read More
No matter how small your small business is, it is... Read More
Whether you are an Entrepreneur or Business Professional there are... Read More
Disclosure laws in franchising are suppose to help the consumer.... Read More
If you own a small business, then you know the... Read More
Thinking of starting a business on line? If so there... Read More
We love Wichita because it has great all round weather... Read More
Doesn't it frustrate you when you've given good service, sometimes... Read More
Attorneys and Lawyers are ruining the franchise industry. It is... Read More
Many small companies work very hard to get new accounts.... Read More
Every home business has the same problem of how to... Read More
In the summer, I can't drive two blocks without seeing... Read More
Someone new to business ownership recently told me, "Before I... Read More
We all know that a building has to have a... Read More
Thankfully, most of us will never find out. That is... Read More
Canon City, Colorado is known for it's 6 Prisons; State... Read More
Why should you describe your business to others in 5... Read More
Cleaning the trailers towed by big trucks is not easy,... Read More
What is a guru?A guru is a teacher. A mentor.... Read More
A cherished business doctrine is that growth must be a... Read More
Outsourcing is the strategic use of outside resources to perform... Read More
When you feel like you're always busy working on your... Read More
Q: I will be retiring this year at age 60... Read More
Everyone is talking about small businesses. In 1993, when it... Read More
Western Springs shuttle limo ..If you are in the professional car care business you... Read More
When should you leverage the relationship?Leveraging sometimes brings a negative... Read More
The Dynamics of Daylight Savings Time changes the way we... Read More
In this series of articles I'm going to show you... Read More
There are many factors to be considered when you are... Read More
Seventy percent of US households use the web when shopping... Read More
Many new ventures are preoccupied with all the money they... Read More
Owning a business is a challenging endeavor. If you're like... Read More
How do marine type businesses start? Have you ever thought... Read More
If you're organized, smart, capable and willing to work with... Read More
The resume writing service serves an important role in the... Read More
Support is critical for your small business survival. You may... Read More
On June 8, 2004, the world witnessed what no one... Read More
If you own a small business, then you know the... Read More
There's no question that hard work and a little luck... Read More
Here are some important points to take note of if... Read More
What does it take to grow a business and run... Read More
1. Everyone Makes A Difference ? Despite not letting him... Read More
Most small businesses incorporated in 2005 will fail by the... Read More
The bad things starts with the letter 'O'?.like Obstacles, Obstruction,... Read More
Tammy, a skilled and gifted horticulturist, called me to discuss... Read More
Canon City, Colorado is known for it's 6 Prisons; State... Read More
There is significant competition in auto detailing and car washing.... Read More
One of the great challenges for independent professionals and small... Read More
How far can you go based on your relationship with... Read More
Small Business |