Mark Lee of Business Legacy Consulting featured in Fox Business News

People are going to need to make more provisions to take care of themselves, not less. The whole issue is having adequate cash inflows during retirement to live the lifestyle that an individual wants. http://www.foxbusiness.com/personal-finance/2012/10/12/how-to-spend-and-save-confidently-for-retirement/

How much money do you need to live the way you want to live?

Financial readiness determines how much money you will need to live the way you want to live after you transition out of your business. You need to spend the time projecting what you will spend. The consequences of not knowing are severe.

Listen to Mark Lee and Karen Benz on "Patricia Raskin's Positive Business" Show which aired in November on AM790.

Everyone will eventually leave their business.

All business owners will leave their businesses eventually – whether that’s “boots first” or whether they sell, they will leave.  The question is, do they leave on their own terms or on someone else’s?  What makes the difference is whether they plan for this exit.  We recommend that business owners begin planning for their exit 3 -5 years from the actual transition.  This gives you time to address any major issues that come up during the process and gives you the most options to meet your goals.

What is Exit Planning and why should I care?

“Exit planning” is a term for the process where a business owner sets goals for their exit from their business and identifies the option that best meets their goals.  If you just go ahead and sell your business without going through exit planning, you are taking a huge risk.  You are accepting a business broker’s “number” without knowing what your goals are, what your financial and emotional needs are, and whether or not your business is ready to be sold.  This is the most important business transaction of your life, your exit from your business.  So doesn’t it make sense to plan for it?

The Emotional Side of Leaving Your Business

You have spent time building your business, and now it’s time to leave.  This wasn’t just a job for you; it was something you put your heart and soul into.

Planning for the transition out of your business can be emotionally taxing.  Facing your fears about leaving the business is important.  What are you afraid of relative to the transition process?  If this is a family-owned business, who stands ready to take over the business?  Are you concerned that the next generation is ready to take over the business?  What are your concerns about that transition? 

It is critical that you focus on having something to go to, rather than focus on what you are leaving behind.  Do you know what’s next for you?  Have you given thought to the next phase in your life?  Planning for the next phase of life with a mental readiness professional can greatly ease the pain of transition.  Do you want to have a role in the business beyond the transition or do you want a clean break?  How will you define yourself beyond the transition?  Too often, a business owners’ identity is wrapped up in what they do.  It is important at this stage to unravel and separate who you are from what you do in order to establish your identity.

Exit Planning provides business owners with a thoughtful process (ideally done 3-7 years prior to transitioning out of their business) to successfully navigate their transition out of their business.  It involves determining the financial and mental readiness of the business owner as well as readiness of the business to be sold.  How do you want to be remembered in your business?