Business owners across the nation are increasingly worried about the state of the economy, causing many to push back their retirement plans. Inflation, supply chain disruptions, and labor shortages have created an environment of uncertainty. Small and mid-sized businesses feel these impacts particularly hard. The rising costs of goods and services make it difficult for many to maintain profitability. For business owners nearing retirement age, this presents a difficult decision.
Choosing to retire under these conditions could mean selling their business at a lower valuation. Many are also concerned that their retirement savings might not stretch as far with the current economic instability. As a result, these owners are opting to keep their businesses running longer than initially planned. They hope that by delaying retirement, they can weather the economic storm and eventually hand over a more stable operation.
Employee retention is another significant challenge. With the ongoing labor shortages, many businesses struggle to find and keep skilled workers. This makes the prospect of stepping away even more daunting. Additionally, potential buyers are more cautious, knowing the extra challenges of running a business in today’s climate. The sale of a business is often the culmination of decades of hard work, and many owners are determined to ensure they receive the best possible outcome.
This environment has created a sense of apprehension among many entrepreneurs. They find themselves in a holding pattern, waiting for more favorable conditions before making their exit. Financial advisors suggest that business owners focus on plans to navigate the current economic situation while still preparing for eventual retirement.
Read the full story by: NAPA Net