Ready to Retire? Plan Ahead for Your Small Business

Thinking about retiring? If you own a small business, it's smart to start planning early. Mike Roach, who started Paloma Clothing in Portland, Oregon, knew he had to think about the future when he turned 74. His manager, Traci Burnes, had been crucial in navigating the pandemic, so he decided to offer her a co-owner position. This isn't unusual; many small business owners are over 55 and will soon retire.

You have a few options when it comes to leaving your business. You can hand it over to a family member or someone already involved, sell it to an outsider, or close it down. The best choice depends on what you want from retirement and the health of your business. Taylor Trapani took over Trapani Communications from her mother after a five-year succession plan. She found the process complicated and time-consuming, so it's important to start planning well ahead. Getting ready to sell or pass on your business takes time. You'll need to make sure your business is in good shape. And don't forget to tell your employees and clients about the change. They'll appreciate the heads-up.

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