How to retire by 50

Do you dream of retiring in paradise by 50?It’s the dream of many small business owners to earn enough money to retire before they turn 50. If you’re in that category, here are the secrets to how to do it.
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Ironically, those who do well enough to stop working early are often the type of people who love what they do so much that they want to keep going.

“If you look at what makes an entrepreneur successful, it’s actually all about the win, it’s all about being successful at what they’re doing and they can’t stop,” says internet entrepreneur Klaus Bartosh, whose latest business is online medical booking service 1stavailable (https://www.1stavailable杭州夜网m.au/).

“They’ll keep doing it until the day they die.”

Even so, even if you’re not the sort of person who wants to retire early, it’s nice to have that choice, so here are seven tips on how a small business owner can stop working by age 50.

PLAN FROM THE START

“You’ve got to start succession planning and retirement planning when you start the business,” says Penny Spencer, the owner of Spencer Travel. “You can’t just say at 45, ‘I’m going to retire at 50’ without having a plan to do that.”

Spencer turns 50 this year and as the owner of a business that takes in $35 million a year in bookings could retire if she wanted to, but she has chosen to work on. Nonetheless, she says she put together her exit strategy about a year after she started the business, with a plan to bring in managers who could take over and run the business once she left.

WORK HARD IN THE EARLY YEARS

Any business owner will tell you that the first couple of years are a crucial foundation for a successful business.

“There’s no doubt that the first two years of any new business takes one of your nine lives,” says Klaus Bartosh. “It absolutely consumes and removes part of your soul and there wouldn’t be any business owner on the planet that wouldn’t acknowledge that.

“Once the first two years are up when you get it basically on its own feet and washing its own face in terms of making enough money then you can start to relax a bit more.”

BUILD A BUSINESS THAT CAN BE SOLD

Cashing out of your business is usually the best way to retire, but you shouldn’t set out to build a business to sell it, even if that is your ultimate aim, says Bartosh, who sold his Hostworks web hosting business to the Macquarie Group in 2008 for $69 million. “That’s actually the worst thing that you can do, because what you then tend to create is a business that’s not sustainable,” he says.

If you’re always thinking about selling the business, you’ll be doing things for the wrong motive. “You’re making decisions with the intention of putting lipstick on something to sell it as opposed to building a business that’s actually got some substance about it that a prospective buyer will look at and pay a premium for.”

BRAND THE BUSINESS NOT YOU

Make sure that all of your branding and publicity efforts go into getting the business better known, rather than getting your name out there, says entrepreneur Creel Price, who started Blueprint Management Group at the age of 25 with just $5000 in capital and sold it within a decade for more than $100 million.

“Too many entrepreneurs become so entrenched in the business without a way to escape because the business’s reputation is based on them,” he says.

EMPOWER PEOPLE

If the business can’t run without the owner then it’s also extremely difficult to sell, so you need to make yourself replaceable. “Give your staff more and more responsibility (and scope to fail) so that when it is time to create a succession plan you are replaceable,” says Price.

TAKE MONEY OUT OF THE BUSINESS

A lot of business owners fail to save for their retirement, putting everything back into the business instead, says Olivia Maragna of financial planning organisation Aspire Retire (aspireretire杭州夜网m.au).

“You are taking a risk getting into business, so you want to make sure that you’re actually taking money out of the business as you go through the business,” she says. The business has to provide not only the day-to-day living costs such as housing and a car, but also needs to provide money for personal investments – that is investments that aren’t part of the business – for the owner’s retirement.

“If you do want to retire by the age of 50 you’ve got to be constantly each and every year looking at the business and grabbing some money from there,” Maragna says.

The original release of this article first appeared on the website of Hangzhou Night Net.

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