Why Most Business Owners Can’t Retire (and How to Fix It) with Josh Patrick

Passive Wealth Strategy Show - Real Estate for Busy Pros

Have you ever wondered why many business owners struggle to retire comfortably despite their business's apparent success?

In this episode, Josh Patrick uncovers the secret to success for business owners who want to retire with financial security. Josh speaks about his four-box strategy of financial independence, which includes pre-funding a 401k plan, having an emergency fund, investing in the stock market, and buying real estate. He also discusses the importance of making businesses' sale ready' and how to delegate tasks and trust employees to make mistakes.

Please tune in to hear about crucial strategies for business owners to ensure their retirement is secure and financially free.

[00:00 - 07:41] How to Retire Comfortably

• Businesses need to go through different stages to reach the scale so that the owners can walk away and the business will run itself
• A business is worth a lot to you as an owner, but when you go to sell it, taxes and fees take away 40% of the value

[07:42 - 15:38] Planning for Retirement: A Four Box Strategy for Business Owners

• The four boxes of financial independence include the value of your business, qualified retirement plan, rental building, and cash flow
• Business owners need to plan for retirement and pay attention to their business.
• Making the business sale ready is vital for businesses that want to be sold in the future.
• To make a business run on its own, teams and systems must be created

[15:39 - 23:06] Delegation: The Hardest Skill to Learn for Business Owners

• There are two systems to help with delegation: EIA and Inspect and Adopt
• Mike Michalowicz's book 'Profit First' and Gino Wickman's book 'Traction' can be used as guideposts for creating a business
• Having a coach can help with the process of learning how to delegate

[23:07 - 26:54] Closing Segment

• Best investment: in the food service business
• Worst investment: cashflow
• The most important lesson learned: restaurants are a tough business to get into

Quotes:

"A business is worth a lot to you as an owner, as an operating entity." - Josh Patrick

"Only 50% of businesses that go to market ever sell. So, if you want to sell your business, you have to do something called making it sale-ready. Being ready doesn't mean I'm about to sell my business. It just means I've created a business that other people want to own." - Josh Patrick

Connect with Josh!

Website: www.SustainableBusiness.co/freedom

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