Posted on: January 4, 2022 |
Building your vending business is a point of pride. Once you’ve successfully operated and grown your business for several years, you may wonder about what to do with your business later in life. Whether you are considering retiring from your vending business in a few years or you are considering retirement many years from now, pre-planning can help you make your exit easy and well-organized.
Tips for Retiring From Your Vending Business
Before we discuss the options for retiring from your vending business, it’s helpful to discuss a few tips for the general process.
- Consider your retirement lifestyle: Think about the lifestyle you want in your retirement, and approximate how much you’ll need to support your lifestyle.
- Use all your options: While your business assets will be important for your retirement, consider other options too, like IRA or 401(K) accounts.
- Work with an expert: When you’re ready to sell your vending business, you’ll need an accurate valuation. Work with an expert whom you trust during this process.
- Plan your exit: Take your time to plan your retirement in the way that works best for you and your business. When you plan beforehand, you won’t be caught unawares if your circumstances change suddenly.
5 Options for Retiring From Your Vending Business
1. Bequeath to Family
You’ve spent years building up your business, and you may choose to leave this business to a family member or friend. This option for retiring from your vending business might be particularly appealing for you if you see yourself operating your business without a set retirement date. If it is important for you to leave a legacy to your family and you have family members who are interested in taking over the business, this might also be a good option for you.
If you want to bequeath your business to a family member, you’ll need to make this clear in your will. Work with a trusted financial advisor, lawyer or accountant to take on this process. Talk with your family about your wishes, and make sure a family member has the necessary training to take on the business.
2. Sell to an Employee
If you’ve grown your business enough to support an employee, or more than one employee, you might retire from your vending business by selling your assets to your employee(s). You’ll need to get an accurate valuation of your business beforehand. You’ll also need to discuss this possibility with your employees. Make sure your business documents are clear, and you carefully consider how and when you want to retire from your business. This might mean selling the business completely with a clear end date, or it might mean making a gradual exit.
3. Work with a Broker
Working with a business broker can help you simplify the selling and retirement process. A business broker is a professional who has experience in accurately evaluating and selling businesses. This professional will not only help you with the valuation process, but they will also help you find the most interested and likely buyers. This option might be best for you if you don’t have buyers in mind, you aren’t sure how to advertise your business sale, or you don’t feel confident about your time or ability to take on the selling process alone.
4. Sell to Another Vending Owner
There may be another vending business owner near you who is already interested in your business. Maybe you already know someone, or you’ve heard of other vending machine owners. See if you can get in touch with other owners, and consider discussing the possibility of sale. To make this a viable option for retiring from your vending business, you’ll need accurate business documents, including a valuation, as well as a business plan, information about your assets, insurance, depreciation, taxes, and more.
5. Sell to a Business Partner
If you’ve considered expanding your vending business with the help of a business partner, this person might also provide an option for retiring from your vending business. When you start your partnership, or as soon as you can afterwards, create clear business partnership documents that you can both agree on. Within these documents, there should be clear rules about how to exit the business, including clear instructions outlining how one partner can sell the business to the other.
Make sure these documents are clear, even if your relationship with your business partner is very familiar. This will help to eliminate uncertainty or strife when you are considering retirement. Your business documents should be clear about the valuation process, how your business partner might purchase your portion of the business, the timetable for this process, how either partner might make an exit independently, and more. Talk to your business partner about this process clearly, and work with a third-party professional whom you both trust, such as an accountant or lawyer.
Consider all of your options for retiring from your vending business carefully. Write down how you see your future, and the best possible outcome for this process. This will help guide your decisions and point you in the right direction.
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