Study Shows Small Business Owners Are Ignoring Opportunities for Succession Planning

April 20, 2015

According to CNBC, the baby-boom generation approaching retirement has been a threat for decades. These days, however, it’s easy to see how the many individuals retiring on a daily basis is influencing our economy as a whole. Every month, more than 250,000 Americans reach age 65. Nearly 20% of this group reports that they are presently retired, which is an increase from the 10% of individuals aged 65 who entered retirement in 2010. shutterstock_221394253

These numbers also have implications for small businesses. It’s expected that around 10 million small-business owners have plans to close or sell their businesses within the next decade. These business sales will be a critical source of retirement funds for the business owners.

Up to 80% of small business owners today plan to sell their businesses in order to fund their retirement. These same business owners see their business sale as the potential to fund all of their retirement needs. Despite this vast interest in selling a business, less than 30% of small business owners have an actual written succession plan. This most recent statistic comes from a national survey of 182 financial advisors.

While business owners clearly see the benefits in selling what they have built, there’s a knowledge gap regarding the importance of succession planning. Without a proper plan in place, a business owner who is counting on the sale to fund retirement could be putting his or her future in jeopardy.

Are you a small business owner? We can help you get started thinking about the need for succession planning. Contact us at info@lawesq.net.


Practice Areas:



Schedule your free Exploratory phone call

Click here to see how we
can be of assistance.

Payment Portal
for Tax and Accounting invoice

This link offers a secure, quick way to complete your payment with Omni360 Advisors LLC.

Our Social Media

Connect with us on Social Media using the following buttons:

Visit our Podcasts

Listen in, Join the Conversation!

Recent Posts

Your Tax Return Is a Roadmap: What to Review Before Year-End

Your completed tax return can reveal planning opportunities before year-end. Review investment gains, business income, retirement contributions, and estimated tax payments with your tax and ...

<p>The post Your Tax Return Is a Roadmap: What to Review Before Year-End first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.</p>

Business Owners: Five Financial Conversations to Have Before December

Before year-end, business owners should review profit projections, cash reserves, major purchases, retirement plan funding, and personal financial goals with their advisory team. The start ...

<p>The post Business Owners: Five Financial Conversations to Have Before December first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.</p>

Before You Make a Year-End Financial Move, Ask How It Affects the Rest of Your Financial Picture

Before making year-end tax, investment, retirement, business, or charitable decisions, consider how each move affects your broader financial picture. Year-end financial planning often starts with ...

<p>The post Before You Make a Year-End Financial Move, Ask How It Affects the Rest of Your Financial Picture first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.</p>