Preparing for your next chapter as a small business owner: t
If you’re like many small business owners, you’re so focused on growing your business and taking care of your employees; you may have put your own future financial security on the back burner. Some 60% of business owners find it difficult to completely “retire,” even though nearly half started their business partly to fund their retirement.1
That gap is one of the key findings in a new research paper, “The Advantage of Advice: How Small Business Owners Navigate Growth, Retirement and Workplace Strategies,” published by Equitable and the SCORE Association. The research revealed that a key differentiator for small business owners who successfully secure their business legacy and transition into their next chapter is working with a financial professional.
Thinking beyond your business
Your business has a record year, and you’re already planning how you’re going to use those profits to expand your business. Sound familiar? Small business owners often get into the habit of reinvesting financial gains back into their businesses, rather than adding to their own savings.
While growing your business is a worthy (and often profitable) goal, it can also pose unanticipated risks to your financial future. That’s because you may be over-relying on a single, undiversified asset (your business) to fund your retirement.
It also makes it more difficult to separate your own financial future from that of your business and plan for both. A financial professional can help align the company’s growth plan with your personal retirement goals, creating a unified strategy.
The material impact of guidance
Equitable’s research found clear differences between small business owners who engage with financial professionals and those who do not. Owners who value advice generally have broader networks of strategic advisors, stronger growth strategies and higher confidence in their retirement plans.
Notably, owners like you who work with a financial professional expect to retire, on average 7 years earlier — age 63 vs. 70.
This can foster greater confidence in your retirement timeline and outcomes, helping you focus on your business without worrying about your own financial future.
Financial professionals can help add value at every stage of a business
Engaging a financial professional is helpful, no matter where you are in your journey as a business owner. If you’re a founder who’s just launched a business, working with a financial professional can help you lay the groundwork for long-term success.
If you’re a more established business owner, you’ll enjoy other benefits, such as planning for your own retirement as well as exploring financial strategies to help you as you seek to strengthen your business.
- Start now. It’s never too early. Even modest planning years ahead of time can move up your retirement date and strengthen your business.
- Build a team: Improve your strategic decision-making by collaborating with a diverse group of varied professionals, including financial professionals, accountants, and business advisors who can work together to support you.
- Have a strategy for your next steps: No matter what stage of life you’re currently in, it’s important to set short- and long-term goals for yourself and your business. As you begin seriously considering retirement, your team can help you evaluate options, including whether to sell or transfer the business, and how to transition from your current role.
Equitable research shows that owners who engage with advice appear to be more growth-oriented and better prepared for retirement. By seeking trusted guidance, you can position both yourself and your business for greater resilience and long-term success.
1https://portal.equitable.com/appentry/EDoxRedirect?node_id=A2025101500002
This informational and educational content does not offer or constitute financial, insurance, investment, legal, tax or accounting advice. Your unique needs, goals and circumstances require the individualized attention of your own financial, legal, tax and other professionals. Equitable Financial and its affiliates do not provide tax, legal advice or services. Equitable is the brand name of the retirement and protection subsidiaries of Equitable Holdings, Inc., including Equitable Financial Life Insurance Company (Equitable Financial) (NY, NY); Equitable Financial Life Insurance Company of America (Equitable America), an AZ stock company with an administrative office located in Charlotte, NC; and Equitable Distributors, LLC. Equitable Advisors is the brand name of Equitable Advisors, LLC (member FINRA, SIPC) (Equitable Financial Advisors in MI & TN). GE-8765029.1(02/26)(exp.02/30)
