A recent survey shows that 77% of current business owners do not feel confident in their current financial situation. A majority of them that all they can do is to focus on their everyday expenses, without the ability to focus on too much of the future.
One of the most alarming findings of the survey was the lack of preparation that most small business owner have when it comes to retirement. Even though almost half of them plan on retiring at age 66, only a third of them have a realistic strategy mapped out that will allow them to retire confortably and with enough income to maintain a similar lifestyle.
40% of the business owners surveyed said that they plan to leave their business to a child, yet there seems to be a lack of plan of succession in place. Additionally, there is always the risk that the next generation will be unwilling or lack the tools necessary to run the business.
“Entrepreneurial businesses are vital to our economic recovery, so it is concerning that so many business owners seem to be sacrificing their own and their family’s financial future,” said Tara Reynolds, a corporate vice president of consumer and product marketing at MassMutual, in a statement. She thinks that “With help, business owners can look past the seemingly overwhelming day-to-day demands of running their businesses and establish and meet their long-term financial goals.”
Another interesting finding was how important it is for business owners that their employees are loyal, yet only 30 percent said they have special benefits in place to help ensure that their best employees remain loyal and with the company.
What do you guys think? I think that the state should require small business owners to take one or two Accounting and personal finances classes before they are able to open a LLC. Even though it may be intuitive to think that this would discourage entrepreneurs from opening business, I think it would be a great tool which would provide them with certain tools they are missing and help them run a tighter operation.