How Can I Plan for Retirement or Exit My Business?

As a business owner, it’s easy to stay in the moment, focused on building and scaling your company. That can mean retirement planning gets pushed to the bottom of your to-do list. However, whether you’re looking to step away completely, transition to a more advisory role, or hand the business off to a successor, planning for retirement requires strategy, clarity, and the right support system. Here’s how to successfully plan to retire or exit your business.

Set Retirement Goals

For some, retirement means selling your company and walking away. For others, it means maintaining ownership but reducing day-to-day involvement. What does retirement mean to you? Without established goals, like the age you’d like to retire and whether you’re interested in passing down the business, selling, or even closing it, it’s difficult to plan for retirement and create a clear roadmap.

Consider These Two Important Factors

Many employees rely on workplace retirement plans, but no matter the industry, business owners need to take a more active role when it comes to how to prepare for retirement. Because your company is likely one of your most significant assets, how you prepare for this transition is just as important as how you manage your personal investments.

Start with these two important considerations:

1. The personal side of things. What kind of lifestyle do you want to have? How much income will you need in retirement?

2. The business side of things. How much is your company worth? Is that value accessible, such as through a sale or dividends?

The sooner you start considering these important factors, the more flexibility you’ll have in choosing your exit strategy. You’ll also be better equipped to support your future self throughout your retirement years.

Financial Preparation

When it comes to how to plan for retirement in a financial sense, you’ll want to consider:

• Tax-efficient strategies: Smart structuring now can help reduce your tax liability upon your exit, especially if you work across borders.
• Valuation planning: Think you’ll sell your company or use it as a retirement asset? Then it’s essential to know its true value, both now and in the future.
• Investments and savings: Depending on your specific goals, this could include a Registered Retirement Savings Plan (RRSP) or investing in income-generating ventures.
• Cash flow: Forecasting how your income will transition over time can help support your long-term financial health.
• A contingency plan: You know things rarely go according to plan. Because retirement can be influenced by several factors, including market fluctuations, having a proactive plan with backup options ensures you have choices when the time comes.

Work With Financial Experts

Retirement and business exit planning require strategic thinking, planning, and a holistic view of your entire financial picture. That’s where working with experienced financial professionals becomes essential.

A trusted finance team, like Zenbooks, brings both clarity and structure to what can otherwise feel like an emotional and complex process. Here are just a few of the many ways a finance team can support your journey:

• Objectivity, offering an unbiased view of your business performance and opportunities
• Advisory and ongoing support, adapting your strategy as your circumstances or goals evolve
• Ensuring forecasting, tax strategies, and exits work together, not in silos
• Reporting tools and real-time access to data that drive more informed decisions

Whether you’re just starting to think about retiring or are actively planning your exit, having an experienced team by your side makes the process more strategic and clear, increasing the likelihood of achieving your overall goals.

Plan for the Future

At Zenbooks, we collaborate to help you set achievable goals, build adaptable strategies, and make confident decisions. If you’re thinking about retirement and what the future may hold, let’s talk about what retirement looks like for you. Connect with us today.