If you’re a business owner thinking of retirement, finding a successor isn’t your only concern. You need to determine whether you want to remain involved with the business. For some owners, it’s an easy decision – they’re ready to make a clean exit.
But for others, the business remains part of their identity. They prefer maintaining ties to the business while also enjoying retirement. But you can have it both ways. You could sell the business with a provision that you hold a permanent part-time position beneficial to the new owner and meaningful to you. Or don’t sell – still own the company to help support your retirement, but hire a manager to take on your duties.
Another option is to make a gradual exit. As part of the sales agreement you specify a transition period during which you remain involved, either taking on a role in business operations or acting as a consultant.