If you are an entrepreneur who is worried that you will not have a big enough "nest egg" to get through your golden years, you are not alone. Unfortunately, most small business owners do not think of the necessary steps to secure their financial future. Often, poor planning and unforeseen circumstances can diminish a business owner's plan for retirement.

There are reasons that this happens. First, the capital it takes to start a business is usually a high sum and there is simply nothing left to put into savings. The startup costs can accrue quickly and it is easy to underestimate the amount of money needed to realize the American dream of business ownership. A sound business plan with an amount set aside for "incidentals" can help limit this mistake.

Second, a down economy can hit small business owners hard. Recessions have business owners actually dipping into their savings to stay afloat. In tough economic times it is advisable to have a cash reserve on hand to get you through. This requires saving a cash reserve when economic times are going well. Veteran business owners often recommend a 1-2 year cash reserve in case of a long recession. At the very least a 3-6 month money reserve is vital. Again, planning ahead is essential for business owners.

Third, poor planning right out of the gate is detrimental. Often, new business owners do not even think about retirement planning when starting their establishment. The mindset is "I'll start saving for retirement when the money starts rolling in". This is a huge mistake. Your startup business plan should include retirement, succession, and other exit strategies. This takes much work on the business owner's end including prioritizing, pre-planning, and reaching out for sound financial advice. It is crucial for business owners to meet with a financial consultant such as a Certified Public Accountant. They have the skill and knowledge to guide you towards your goal of retiring on your time.

These are just some of the things to know when retirement planning for a small business owner. It is never too late to plan your retirement and there is no one-size-fits-all plan. Contact the Certified Public Accountants of Mierendorf & Co to discuss your retirement options. The worst thing you can do is put it off any longer. Call today and let's get started. 616-784-4445