Following a tumultuous few years, including a global pandemic resulting in rises of interest and inflation, retirement looks appealing to business owners who want to start their retirement ‘stress-free’.
Retirement planning has evolved rapidly over the last couple of decades, and having enough money to retire has become even more of a worry for business owners. So the more prepared you are, the better your start to retirement will be.
With this in mind, we have created a guide of our top tips for business owners on how best to raise funds for retirement through your business.
Speak to a professional
To get the most from your pension when you retire – now more than ever – it pays to think ahead. Speak to a professional for expert advice sooner rather than later, even if you don’t plan to retire for a decade or so.
Speaking to a business appraiser, you can find out what valuation they would give your business and get advice on the best exit strategy for you. If this is done way in advance, you can make sure you reach any target goals and objectives to improve the value of your business further and increase your return on investment.
Professional advice will help you to determine how much your business is worth and to help you make a well-informed decision about how to get the most from your business.
Prepare in advance for any business sale
For the best possible results, it is vital to correctly record all assets, customer base, tax returns and financial records, which determine how much money you can raise from your business.
You should also be prepared, at least a year in advance, for retirement with a plan for raising funds, selling assets, selling your whole business, or other means. This will give you plenty of time to make a well-thought-out decision.
Selling business assets
Once you know the value of your business assets, reviewing which items you can sell to raise funds for a comfortable retirement is a good idea.
Business assets are a simple way to raise funds, as the physical items can be transported to customers across the UK and grouped into as many parts as you wish. For example, construction and engineering plant and machinery will always be in-demand, and good quality equipment will also hold value for other businesses and can offer great returns. Site accommodation is also an excellent asset to sell, along with business vehicles, as they are traditionally used for all sectors.
Selling business assets is also a much quicker option to raise funds than selling the whole business at once, which can take years to settle a sale. If you decide to sell the business, you can choose which assets to turn into quick cash while you wait for the perfect buyer.
Choosing an online asset disposal expert is the most efficient way of disposing of industrial and commercial assets. You can reduce time and money by selling business assets directly from your site (no extra transport fees!) and increase exposure to national and international buyers, widening the chance of a sale at a target price.
At BPI Auctions, we have over 10 years of experience and are one of the UK’s fastest-growing asset disposal companies supporting businesses from various sectors, including Manufacturing, Engineering, Construction, Logistics and more. We manage the entire selling process, including valuation, collection, marketing and auctioning of B2B assets, hosting over 1200 auctions annually.