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Semi retirement ideas required please

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Post Thu Dec 17, 2015 2:57 pm

Semi retirement ideas required please

Hi everyone.

What are your retirement plans.

I'm now 51, hubby is 56 next year.

We would like to retire or at the least semi retire.

If we did retire we feel we would have to do "something" or we'd become couch potatoes. So semi retirement looks the best move.

Do anyone run their business on a 3 day week?
Do you pass on the larger more complicated work ( no staff to help out)

Has anyone created an opening for a more younger business partner to help out?

Any ideas or pointers would be most welcome.

Denise x
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Post Thu Dec 17, 2015 3:38 pm

Re: Semi retirement ideas required please

Hi Denise,

How about buying a laser engraver and personalising small items?

Best

James
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Post Thu Dec 17, 2015 3:49 pm

Re: Semi retirement ideas required please

James Boden wrote:Hi Denise,

How about buying a laser engraver and personalising small items?

Best

James


James and all other members, please don't suggest that my husband buy any more equipment.....he's got enough. LOL
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Post Thu Dec 17, 2015 6:16 pm

Re: Semi retirement ideas required please

How much of what you do do you still enjoy ?

if possible whittle the work down to what yous enjoy and find easy, maybe clothing etc ,
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Post Thu Dec 17, 2015 9:07 pm

Re: Semi retirement ideas required please

I've got health problems so only work part time, been doing that for years now, don't advertise at all & got rid of the website which helps to keep the tyre kickers away.
Like David has suggested I scaled right back on the sort of work I do, I have an industrial unit rather than work from home but that is basically because the flat I lived in for 7 years was tiny with no storage space at all. There wasn't enough room to keep my fishing gear never mind any sort of working gear. I am lucky in that the unit rent is cheap & I have kept costs there down to a minimum, just rent, insurance & utilities but no phone line.
Sit down & go through all the different stuff you currently do & decide if you would be happy carrying on with it or if you would be happy to let someone else do it. Make a list of customers you enjoy working with & those you would sooner went elsewhere. Should give you some idea how much income you would generate.
I do mainly vehicle livery now which works for me, customers bring van to unit so I don't have to go out fitting. I also do quite a bit of craft type work on the cnc router which I really enjoy.
How much money you will need to earn will be a deciding factor, me I live on my own & have very modest needs plus I have a Service Invaliding Pension from being medically discharged from the RN which means I already have an income each month & don't rely completely on the business to live.
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Post Thu Dec 17, 2015 10:38 pm

Re: Semi retirement ideas required please

This subject is too close to home, having just retired, a couple of weeks ago from working in Film TV and theatre for thirty five years, I found it very strange not to be responding to a hundred emails and some very strange requests, but but but, after taking two days off, the penny dropped, you can do what you want, I have sat down to try to work out what is next, but no pressure, so that makes a change, sorting out what is next in my life is going to be enjoyable, working with who I choose to work with, and undertaking the projects put off for years, getting fitter, spending more time with family and pals. Oh and going mental at Christams
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Post Fri Dec 18, 2015 10:14 am

Re: Semi retirement ideas required please

Well it seems quite a few of us are at this stage now-I'm close to 64

like Martin, Graham and others say you really can just choose what level, volume, type you're happy with

A massive job comes along
what do you do?
Undertaking could means lots of dough at the end of it but could leave you mentally, physically stressed out
You then realize you passed up lots of time to just to relax, be with the family, your children/grand children

I've passed over some great jobs simply because I don't need the headache the stress the worries
I just want to keep it simple

If finances permit just trim down on the workload
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Post Fri Dec 18, 2015 10:28 am

Re: Semi retirement ideas required please

Alison would love to retire - whereas I dread the prospect even though I have a few projects I would like to indulge in if I had more free time. But this thread has made me think - what are our options for retirement? I guess it depends on the type of business you are running. Is it self sufficient (i.e it runs itself with staff to do the work) or is the business effectively you?

These are my suggestions:-

1/ Sell the business - How easy is this and what sort of price is achievable?

2/ Close the business - but it seems a shame to close down what is currently a viable concern that allows you to make a decent living

3/ Pass it onto a family member - Is there a family member that would be interested in taking over the reigns?

4/ Bring in a manager and staff to run the business - This would appear to be the best of both worlds. The business would remain intact and you could take a small income as the owners whilst paying wages to the staff

5/ Scale things back and only take on the work you find enjoyable and least stressfull as others have already suggested.

Just thinking out loud :-?
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Post Fri Dec 18, 2015 11:00 am

Re: Semi retirement ideas required please

Thanks guys

Phill Fenton wrote:Alison would love to retire - whereas I dread the prospect even though I have a few projects I would like to indulge in if I had more free time. But this thread has made me think - what are our options for retirement? I guess it depends on the type of business you are running. Is it self sufficient (i.e it runs itself with staff to do the work) or is the business effectively you?

These are my suggestions:-

1/ Sell the business - How easy is this and what sort of price is achievable?

2/ Close the business - but it seems a shame to close down what is currently a viable concern that allows you to make a decent living

3/ Pass it onto a family member - Is there a family member that would be interested in taking over the reigns?

4/ Bring in a manager and staff to run the business - This would appear to be the best of both worlds. The business would remain intact and you could take a small income as the owners whilst paying wages to the staff

5/ Scale things back and only take on the work you find enjoyable and least stressfull as others have already suggested.

Just thinking out loud :-?


We have tried to sell, we thought £80k would have been a good price, considering the equipment we have, 20 years trading, the money we take out of the business......but not many people have £80 floating around.

We could shut up shop, we own the building so that would give us money via the rent, but that seems such a shame as its been trading so long, we have a good customer base and we take out a really good wage. We could then sell the equipment, but that would leave us bored , so we would have to look for some part time thing to do....

To get someone in, we have thought of that too, the business can withstand this, but unless the profit could be increased there would be little left for us to take out. Could we trust the staff to run it correct, keep the printers clean etc, can you trust them financially too. As we've found out with my stepson, if your hearts not in it, mistakes increase, profits drop....

Scaling it back, to say 3 days seems the way to go, but..... How many customers will walk, how long would it be before most customers Go elsewhere. Thus making 3 days not worth opening your doors.....

It's a tough one, there are so many ifs and buts.

Thank you for the responses, please keep throwing ideas at me

Denise xx
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Post Fri Dec 18, 2015 12:08 pm

Re: Semi retirement ideas required please

Denise Goodfellow wrote:
We have tried to sell, we thought £80k would have been a good price, considering the equipment we have, 20 years trading, the money we take out of the business......but not many people have £80 floating around.


How about you gift the business to someone on the understanding they pay you an ongoing commission (say 8% of turnover) providing you with a regular income along with the rental income? This way it would be affordable for a hard working individual who had the drive and ambition to run their own business but lacked any equity. Long term you would achieve a return far in excess of the 80K you had hoped to get?

An alternative is to employ someone who earns a share in the business over time and eventually takes over. This means you get a driven individual who gradually gains part ownership and has a vested interest in ensuring the company thrives
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Post Fri Dec 18, 2015 4:39 pm

Re: Semi retirement ideas required please

If you semi retire is it so you & Hubby can do lots more things together or do you have interests you both want to pursue on your own, just a thought but if that were the case then you could both have a couple of days off a week at different times.
First thing to try & work out first is really how much income a year you need to generate to do all the other things you want to be able to do. With out having at least some idea about that then it is difficult to decide which is the best way to go.
One thing I found is that there are a lot of customers who are happy to wait a few days if you have a good relationship with them. Have you thought about speaking with some of your existing customers about this to see how they would feel?
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Post Sat Dec 19, 2015 11:09 am

Re: Semi retirement ideas required please

Thanks Martin and Phil

We do realise that going from 5 days down to 3, there is obviously going to be a shortfall in profits.

We have some property that we rent out so we are not going to be short even if we just shut up shop, it's more finding the balance of a better lifestyle and still working, while still work being fruitful. No point of working if there is a big shortfall of customers and the overheads makes it not work. As we would get a certain amount be just renting out the shop, so working has got to be worth the effort, if you understand me.

It's just a shame there's a good small business that might just end up shutting up shop.

Still racking our brains lol

Denise x
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Post Sat Dec 19, 2015 2:36 pm

Re: Semi retirement ideas required please

Don't think I'm being cheeky replying to this thread as I'm only 24.

But I look at it from the point of view of someone starting out in the business.

Can you not groom a successor? If you could find someone to come into the business on the understanding that should things work out as planned then they would be able to "take over" within a specified time frame- say 3-4 years.

You can teach them how to run the business etc, then lend them the money to buy you out ( theres not much point having lots of cash in the bank earning diddly squat) They pay a commercial rent plus a percentage of turnover until they pay back the agreed sum. You can act as a consultant to protect your asset and help with advice on increasing revenue ( maybe come in 2 days a week to look over the books etc ( make sure its not going pear shaped). You still own the assets until final payment etc.

That sound like a fantastic opportunity for someone who wants to get ahead.

Good luck with your retirement, Ive only got another 50 years to go!
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Post Sat Dec 19, 2015 5:14 pm

Re: Semi retirement ideas required please

Steff Davison wrote:Don't think I'm being cheeky replying to this thread as I'm only 24.

But I look at it from the point of view of someone starting out in the business.

Can you not groom a successor? If you could find someone to come into the business on the understanding that should things work out as planned then they would be able to "take over" within a specified time frame- say 3-4 years.

You can teach them how to run the business etc, then lend them the money to buy you out ( theres not much point having lots of cash in the bank earning diddly squat) They pay a commercial rent plus a percentage of turnover until they pay back the agreed sum. You can act as a consultant to protect your asset and help with advice on increasing revenue ( maybe come in 2 days a week to look over the books etc ( make sure its not going pear shaped). You still own the assets until final payment etc.

That sound like a fantastic opportunity for someone who wants to get ahead.

Good luck with your retirement, Ive only got another 50 years to go!


First of all Steff..... Bitch! LOL only joking, wish I could turn back time and be 24 again.... But know what I know now. Xx

Yes, we have thought of grooming someone.... But we got in trouble last time lol joke there somewhere lol. All these jokes and no wine lol

Seriously, yes we have thought of training up a buyer, first of all as staff, then gradually to take over.

But unless there's some cash involved, they have nothing to lose, where as we could lose everything. Equipment needs to be upgraded oftern to keep up with other folk. Who pays for that, who pays for repairs if the new guy messes up etc.

I'm not knocking you, I am thankful of the response, I'm beginning to think there's no real answer as each suggestion has down sides.

I'm beginning to think Martin has the right ideas

Xx
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Post Sun Dec 20, 2015 1:54 pm

Re: Semi retirement ideas required please

Hi Denise
What ever you decide doesn't have to be set in stone..be flexible ..go with your gut decision but be prepared to change if not working. I'm 56 and also looking to retire sooner than later but I'm lucky that my two children own part of the business. Not sure If they'll pay me a pension tho' or put me straight in a home !!
I suggest that you stay on...bump your prices up. ..and be strong bout saying no to jobs you don't want. Build your net profit up over the next few years and sell.

John
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Post Mon Dec 21, 2015 1:11 pm

Re: Semi retirement ideas required please

We have some property that we rent out so we are not going to be short even if we just shut up shop, it's more finding the balance of a better lifestyle and still working, while still work being fruitful. No point of working if there is a big shortfall of customers and the overheads makes it not work. As we would get a certain amount be just renting out the shop, so working has got to be worth the effort, if you understand me.

Denise, it depends what you really want out of this, if your just looking to generate as much money as possible then maybe best to just sell everything & move on. That would probably be the best Business decision if you have already explored other options & feel they are not for you.
If however you are looking to change your lifestyle then does the business have to generate a good income? You have already said that you have income from other sources so if the business just paid for itself & little more would that be worth it to you?

My circumstances are very different to yours I don't own the unit I rent it & the equipment I have is old so if I packed up it wouldn't give me much in the way of a lump sum, I don't have any staff to consider either.

I don't really make any money from what I do now so from a purely business point of view I should just pack up & not bother anymore. Reason I don't is because I get more from it than just money. It helps me to get out the house & keeps not just my body but my mind active. Keeps me in touch with other people rather than just sitting in the house by myself. Gives me a great deal of pleasure as I only do the things that I enjoy doing.
Lots of other advantages for me personally that you may feel aren't relative to you or your circumstances but if you look at it from what you could get out of it other than just an income then you will probably be able to produce your own list.
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Post Mon Dec 21, 2015 6:09 pm

Re: Semi retirement ideas required please

Martin
You are a wise man xx

I think you might be right.

We have decided to work in the shop Tuesday to Thursday. Giving us a 4 day "weekend"
We will just take jobs we want to do, cutting loose all the "can you don't it for less " customers.
Large signs we will either just supply or pass the details onto another signmaker who has offered us a % for the lead.

We will cutback on all overheads as much as possible. We'll keep an eye on profits, if it turns out we'd be better off just selling the equipment and renting the shop then that's what we'll do.

Thank you all for the suggestions

What has stood out is family, health, enjoying your life rather than working all the time, is a very important stage that we all approach at some time in our lives.

Denise xx
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Post Wed Dec 23, 2015 5:49 am

Re: Semi retirement ideas required please

Good topic. Some good ideas here. Lot's of us are at this point and decisions need to be made. Thanks to you all for your ideas. We are in the process too. I will document our journey and share it here when completed.

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