Small Business: Retirement
Your true net profit is the number that potential buyers will want to know.
Susie Pemberton, Centralia, Mo.
I live in a small town and own a child care facility. My gross income in 2008 was $126,134. Someone’s interested in buying it, and they’re waiting for me to give them a price. I understand that I need to “adjust” my expense report for 2008, but I’m not sure what to use for a multiplier. I’ve been in business for six years, and can see room for expansion in the future. How do I name my price?
If the problem of too many owners is killing the business, it's time to restructure.
Kelli, Bishop, Calif.
How hard is it to split a family business? A mother and three siblings each own 20% of the business but the siblings don’t get along at all.
How to keep your retirement savings on track when you're out on your own.
Joe Vitale, New York City
I recently left a staff job and am working as a freelancer. I’d like some advice on how to best manage my bookkeeping. Do you have any recommendations on interest-bearing checking accounts that I can link with an account to set up a retirement savings plan such as a SEP? Read more…
Should a buyer pay more for a building if selling it would mark the end of the owner's business?
Michael, Salem, Ore.
Dear FSB: My parents have a small business and own the building in which it operates. The person next door would like to expand by buying my parents' building, and keeps asking them for a price at which they would sell. My Dad would like to retire if they sold it, and would lose the income from the business. Two questions: Should the person pay a premium because he needs the building to expand? (Supply and demand, right?) And second, should the value of the business itself be added to the asking price, since he would be putting my Dad out of business?
Read more…
Sammie wants to know how to set up a 401k. Do you have thoughts to share on this process? Let us know!
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