Making Hard Decisions as a Small Business Owner
The pandemic has hit a lot of people hard, particularly small business owners. What should they do about the tough decisions on how to proceed? Let’s talk about how business owners are fighting for survival in 2020.
(Want to jump ahead in the episode? Click the featured times below to skip to a specific section.)
While everyone has been impacted in some way by the pandemic this past year, small business owners have been hit extremely hard, especially as so many of them were forced to be shutdown for at least a period of time. A recent survey showed that the average small business is 60 years old, which is close to retirement age. What has Brian heard from small business owners? Are they ready to retire? Is the business closing up due to the impact of COVID? Is it time to walk away?
Small business owners often pour their heart and soul into their business. It might even be their ultimate retirement plan. But now if they sell the business, the value has declined due to the pandemic. So, do you continue to keep the doors open and deplete your assets or do you close down for good?
Make sure you reach out to an advisor to think strategically about your business plans. Are you pulling from your personal assets? Is that a wise decision? Before you make a large decision like closing down, understand the tax strategy you need to put in place. Know what will happen and what your options are moving forward. Working with a financial advisor and tax planner can help you navigate these decisions so you don’t have to feel the stress of doing it alone.
Listen to the entire episode or click on the timestamps below to skip ahead.
[0:16] – Small businesses have been hit hard due to COVID-19.
[2:12] – Have you gotten advice prior to closing the business?
[3:00] – How is the small business being kept afloat?
[5:27] – Are you making the best decision?