A good question, Scott. As you can see from the replies above everyone has a different solution taking into account their personal goals, lifestyle and market. The important thing is to both ask it and take action on your answer.
It seems that the big fork in the path to success is deciding between being an owner/operator or "going for it" and building a big operation. Either way can work. The problem is when we wind up on "the road in-between". What I call being "too big but too small". (I don't know if I can use the "I-word" on this board but my ICS column on this subject several years ago was the most popular I have ever written. If you want an e-mailed copy just write me at
stoburen@homefrontsuccess.com) A few thoughts ...
IF you opt for the owner/operator route (and who can blame you with all the headaches of employees?) just bear in mind that the sale of your small business will not provide completely for your comfy retirement. So make alternative arrangements:
1. Fund the heck out of your IRA. (Actually this applies to everyone, big or small.)
2. Right now, today, immediately start religously siphoning off 10% of your gross earnings and put them into a personal investment fund. Most people recommend a variety of low-cost index funds.
3. I would seriously look at investment rental real estate. (If you can stand dealing with tenants.) Real estate has been veddy, veddy good to me. And obviously buy a home, don't rent.
4. Do you have a hobby that can be converted into a part time, retirement business for supplementary cash flow? The old saying, "Find a job you love and you will never work another day in your life" can apply to retirement. I know it does for me with my very part time relationship with Jon-Don.
Or of course you can "get big" in business. (Even so, it wouldn't be a bad idea to do all of the above too! There is no virtue in poverty!) If you do choose this route you will need to make the business run without YOU. Those who don't do this condemn themselves to a miserable, stressed out life and very likely "early retirement" by dying young!
As entrepreneurs we have a wonderful opportunity. The ability to choose our future. Don't blow it by forgetting to focus on Scott's great question: "What is your exit strategy"? For those who do not have it I have a 68 page Special Report on this subject. It is called "Cleaning Up: Building Personal Wealth in the Cleaning Industry". (Actually it is 63 pages with a five page "info-mercial for
SFS tacked on to the end. But you don't have to read this part!) Anyway, just write me at
stoburen@homefrontsuccess.com for your e-mailed copy.
Steve Toburen CR
Director of Training
Jon-Don's
Strategies for Success
PS Even though my Special Report has several chapters on preparing your business for it's sale (and this is the route I took almost sixteen years ago) I will also say that IF you can do it both emotionally and from a management standpoint Askal's approach above has much to recommend it.
Simply put, your small service business running as a "cash cow" with others managing it is always worth more than selling it. Of course, this means that you will have to get down in the trenches and develop both the Business Infrastructure AND the people to replace you as the owner. Few small business owners have the fire in the belly or the management vision to accomplish this task.
Thanks for reading,
Steve
(At the current age of 54 I've been happily retired now for 16 years. I am VERY grateful to this industry for giving me the "gift of freedom" while Sioux and I are young enough to enjoy it.)