It’s not financially possible to retire at 65!
Longevity experts are reporting more and more people are living to 100 years of age. If a person retires even at age 62, that would mean you would need a reliable income without working for 38 years. If you max out social security at $20,000 per year but you require $50,000 per year, that means you would need to draw down on savings at $30,000 per year. You would need over $1,400,000 in cash savings in after tax dollars to retire. If you sell your business capital, your tax is 25% Federal plus State Tax of another 7% or 32% total. So you would need to sell the business (which includes paying off all liabilities) for $2,000,000 cash, paying $640,000 in taxes to end up with $1,160,000 for retirement. Or you could keep the business going until you reach your late 70’s or early 80’s.
If you turnkey the business, then grow it, you won’t have to work unless you wanted to and you’ll be financially secure until age 100 with no problem. No problem, that is, if you have the right systems, data, and people.
Systems include; policy, procedures, job descriptions, and organizational charts. Work processes are required for Marketing, Sales, Operations, Information Technology, Finance, and Management. Processes are the written or digitized methods to get work done efficiently and effectively.
Without proper systems, your employees won’t know what is expected of them.
No policies in place?
Employees can damage your products or services and your company image without consequences.
Your employees can defend their mistakes with a simple “I didn’t know.”
No job descriptions?
Employees can end up in positions that they are not qualified for and can multiply training costs.
No organizational charts?
Your employees won’t know who to go to for help to complete tasks or learn more and can easily get misinformation from the wrong person.
Data is quantification of the systems and people that report things like how many sales were made, how much work is in the pipeline, how many people are required; it shows what’s working and what is not.
Without reporting data, you won’t know if your business is improving or not.
No sales reports?
Your salespeople won’t be able to set goals to increase sales based on previous performance.
No sales pipeline?
Your salespeople won’t know who to approach or how to approach them.
No action plan?
You won’t know what forms are needed or how many people are required for the task.
People are the employees that are accountable to get it all done, plus the oversight of others to follow up to be sure everything is done.
Without great people, you won’t obtain or keep great customers or clients.
High turnover rate?
The cost of training will decrease profits, costing much more than a qualified long-term employee.
Do your Managers lead by example?
If your Manager just tells people what to do rather than helping them when requested, listening to their ideas to improve processes, and recognizing their accomplishments; your business could lose more than just a few employees… like the opportunity to become your industry’s leader.
Decreased customer satisfaction?
Settling for any employee right now over the right employee to cover productivity needs can cause your business to lose productivity, morale, referrals, and most importantly; customers.
We have developed everything that is required to turnkey any business; proven to work through our experience in implementing it in over 200 companies for over 30 years. Contact us for more information on how to build great processes and hire the best people.