Most small business owners know that planning for retirement is crucial. But according to an article from Entrepreneur, very few business owners are aware of their operation’s true value or take steps to receive accurate business valuations well before considering retiring. This makes it difficult to ensure they receive adequate compensation for their business to fund their retirement.
The article cites surprising research. According to CNBC and the Financial Planning Association, 78 percent of small business owners are planning to sell their companies to fund between 60 to 100 percent of their retirement. In addition, a recent survey by Manta, which provides research and resources for small businesses, found that nearly 60 percent of small business owners in the U.S. plan to retire before the age of 65, though 34 percent do not currently have a retirement plan in place.
