Your financial plans for retirement may be personal, but bringing your plan to your business makes good sense for you and your employees. Owners who offer an employee plan tend to save more personally and have larger and more successful businesses, according to the Frontwater Capital's Retirement Study. In addition, the benefits are more than just financial: Owners with personal retirement plans reported that they feel more prepared for retirement than do those without plans.

The new retirement

Integrating business and personal financial plans is all the more important for owners who rely on their businesses to fund their retirements. The study found that more than 80% of business owners plan to work in some capacity, either in their current careers or in a new area of work, and almost half of business owners want the freedom to cycle between work and leisure. For them, retirement is an opportunity to make a lifestyle change, such as returning to school, starting another business, traveling, creating a nonprofit or spending more time with family and loved ones. To fund these aspirations, owners may draw on income from their business or continue to work in a part-time capacity. As a business owner, you have the freedom to make these kinds of decisions.

Personal advice leads to business advice

Most owners naturally think of their own retirement needs first and their employee's retirement needs second, but the strategy you use to provide for yourself can also outline the plan for your business. Because so many of the investment vehicles used to fund retirement cross over to both realms, owners are often pleased to find the process of setting up a business retirement plan easier than they previously thought.

Implementing a retirement savings option helps both employer and employee. Not only do employers feel better about retirement if they have a plan in place, but employees report retirement plans as among the most important benefits a job can offer. The study also showed that while employers often assume that their employees cannot afford to contribute to a retirement plan, small-business employees generally earn higher salaries than do their counterparts at large corporations.

Chart your course

Because many of today's business owners are baby boomers, they may live a good 25 years or longer in retirement. This makes retirement planning increasingly important. Think about these key questions as you consider your options:

•    How do I envision retirement for myself and my family? Do I want to continue working or do I want to travel, dedicate myself to nonprofit work or spend more time with family and friends?
•    Should I plan to sell my business and use the proceeds as a source of income?
•    Would it be wise for me to flow profits back into the business for growth and expansion, or should I use these funds to build a retirement plan?
•    If I'm thinking about selling the business to fund my retirement, when does it make sense to build a succession plan or have a business valuation?
•    Do I have sufficient cash to handle employer contributions to my firm's potential retirement savings plan?

Many entrepreneurs start their businesses to gain freedom and control of their personal and private lives. Luckily, you have the same freedom and control when it comes to retirement planning. You are in the driver's seat when it comes to formulating retirement plans that best fit your needs, the needs of your business and the needs of your employees.