The enterprise value specialists at Ceibass have been working with lawn & landscape business owners across the country to increase the enterprise value of their companies so that they can have enough money in their nest egg when they retire to live a good life.
“The thing to remember as a lawn & landscape business owner is that you have to earn enough money from your business now to take care of your immediate concerns, but you also have to earn enough money to take care of your retirement, from age 62 to 92,” said Tom Fochtman, Ceibass CEO. “That’s an additional 30 years. So whatever you spend on your lifestyle annually now, multiply that by 30 and you’ll get an idea of what it will take to retire at about the same lifestyle level. This is not common knowledge. The age of pensions and being able to live pleasantly on social security are over. You basically have to earn enough in 40 years, from ages 22 to 62, to take care of yourself and family for 70 years, from ages 22 to 92.”
So, for example, if you spend $100,000 a year on living expenses now, you will need about 30 times that, or $3,000,000 later, to retire without making significant compromises to your lifestyle.
“The bar is higher than you think. This is why lawn & landscape business owners strive to increase the value of their company, all the time,” said Tom Fochtman. “They constantly increase the value of their offers, invest in people, equipment, systems and technology to advance their company, enhance sale-ability and protect & grow their nest egg.”
Recently, THE WEEK magazine ran an article entitled The Graying of America. In it they said that “Boomers” have an average of only $152,000 in retirement savings – far too little for a 20 – 30 year retirement.
“Don’t listen to the common sense that is out there about money and how much you need. It’s flawed,” said Tom Fochtman. “Get with professionals who will speak the truth to you about how much money you really need for retirement and start acting to increase the value of your business today.”
To read The Graying of America article in THE WEEK, click here.