We’ve all been told the classical retirement plan story. You work, you put money into a 401k, you retire when old, and maybe, if the stock market behaved, you get to enjoy your retirement.
But if you’re an entrepreneur, the rules go out the window. And if you’re a savvy entrepreneur, you will have a retirement plan that is compatible with your ideal life.
A buyable business is a big part of that, especially if you’re planning for a graceful exit. But for now, let’s dive deep into the concept of an ideal retirement plan.
What Does Your Ideal Life Look Like?
Before you even start a business, you should figure out what your vision of an ideal life is. That way, you can make meaningful plans. Your business strategy will be directed towards getting you from point A to point B.
Ask yourself these questions:
- How would I be spending my waking hours if I could choose to do anything I wanted?
- Where would I be living?
- What would my purpose be?
- Who and what kind of people would I surround myself with?
- What would my health look like?
- What activities, and in which proportions, would give me the greatest satisfaction?
Take an afternoon to write out the answers and see how your business might fit into your ideal life. If you’re like most people, you’ll want to retire early. Now, that doesn’t mean that you will stop working. It just means you will have the financial freedom to pursue your passions without worries.
A Meaningful Retirement Plan
You don’t have to retire to idleness, which is probably a bad idea for most people anyway. Without purposeful challenges, life offers little value.
A meaningful retirement plan should consist of two parts: how to get to the point of retirement and what to do once you retire.
If you decide that building a buyable business is your retirement plan, that’s great. It’s a simple task, but it isn’t easy.
More importantly, before you embark on that mission, consider your ideal future and how the business fits into that. In my new book Buyable — Your Guide to Building a Self-Managing, Fast-Growing, and High-Profit Business, you will find the three most important questions that will help you figure out what role your business should have in your life.
But, back to your retirement plan…
What Is Your Magic Number?
Do you know what a Magic Number is?
My favorite definition is from Lee Eisenberg, the former editor of Esquire, who said:
“It is a free pass to a great life, without financial stress.”
Does a Magic Number sound interesting to you? Do you know yours?
Money isn’t the answer to your happiness, but envisioning the kind of life you want and what amount of money it will take for you to get there is essential.
It is worth knowing up until which point money is the aim and after which point you can focus on something beyond financial wealth.
Figuring out your magic number will give you that knowledge. Get the formula in my new book, and in the meantime, I’m leaving you with this great quote to ponder:
“We are haunted by an ideal life because we have within us the beginning and the possibility of it.” – Phillips Brooks
Never give up on your potential!