Electrical Business Investment Strategies For A Retirement Plan
As an electrical business owner, you possibly can’t expect yourself to be working all your life. There will come a point in life, where you would like to step back and relax. To make sure that you can chill and enjoy later in life, you have to have an investment strategy now, which will benefit you in your retirement.
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You have to pick a date you want to retire on.
CNN recommends that you should start planning your retirement as soon as possible, even as early as 20, the moment you are out of grad school. Ideally, you should plan your retirement 10 - 20 years early on!
When startups are the in-thing, Forbes has formulated an 8 step exit strategy, which you might want to apply to your electrical business too:
When starting out, keep the end in mind.
Have a personal destination and timing, so that even if you wrap up your venture, you know that it’s not the end. You can always start something new.
Assess your business’ health from the point of view of an investor. How well will they think your business is functioning?
Get regular feedback regarding the saleability of your business.
Network with potential buyers. Do not leave this step to last minute.
Ensure multiple revenue streams in your business. Retain your star team, if you plan to start something new later.
Create a positive and reliable database that shows the strengths of your business.
Walk your way out by planning ahead. Do not wait for a push or for the market to deteriorate.
If you had early-stage investors in your business, they would want to know about your thoughtfulness, commitment to the business, and flexibility in terms of exit strategies. When people can't sell their business, they have to keep working, so start planning early on:
Who will you sell to?
How much money do you need to maintain your standard of living and retire well?
What can you do to achieve the above goals?
Other than the above exit strategy, you have to also ensure that you don’t put all your golden eggs in one basket. Meaning, you have to divide the ratio of your investment such that you invest 30:30:30 in Cash: Property: Stock. Thus, if something goes bad in one area, you still have two other areas to back you up!
Before you start to invest and plan to retire, remember to pay your house off first. Get rid off all the debts because as the author Stephen King says:
“I have two amazing things in my life: I’m pain-free and I’m debt-free.”
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