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For many business owners, their company represents years of hard work, sacrifice and investment. It may also be one of their most valuable assets.

So, it’s understandable that the eventual sale of the business often becomes part of the retirement conversation: “One day, I’ll sell the business and that will fund my retirement.”

It sounds like a reasonable strategy. But relying too heavily on your business to provide for your future can leave you exposed to factors outside your control.

A successful business isn't the same as a retirement plan The value of your business today doesn't necessarily guarantee what you will receive for it in future.

Economic conditions, industry changes, competition and buyer demand can all influence its eventual selling price. The timing of a sale matters too. You may be ready to retire at 60, but the market may not offer the right buyer or the right price at that particular time. There is also the question of how dependent the business is on you. If much of its success is built around your personal relationships, expertise or daily involvement, its value to someone else may be different from its value to you.

Your business can certainly be an important retirement asset — but ideally, it shouldn't be the only one.

Build personal wealth outside your business

Business owners are accustomed to reinvesting. There is always another opportunity to grow: new employees, technology, equipment, premises, marketing or expansion. While reinvesting profits can help build a stronger company, continually prioritising the business can mean that personal investments and retirement savings receive less attention.

Building wealth independently of the business gives you another financial foundation.

Depending on your circumstances, this could include retirement and discretionary investments, emergency savings, appropriate insurance and estate planning.

The objective is not to stop investing in your business. It's to make sure you're also investing consistently in your own future.

Protect the person behind the business

Retirement isn't the only consideration. What happens if illness, disability or another unexpected event prevents you from working? For a business owner, the impact can extend beyond a temporary loss of income. Your household, employees, business partners and even the future of the company may depend on the plans and protection you have in place.

Personal risk cover, business protection, succession arrangements and estate planning should therefore form part of the bigger financial picture.

Planning for the unexpected isn't about expecting something to go wrong. It's about making sure that years of hard work aren't unnecessarily placed at risk if circumstances change.

Give your personal finances the same attention as your business

As a business owner, you probably spend a significant amount of time thinking about cash flow, growth, risk, strategy and the future. Your personal finances deserve the same level of planning. A financial advisor can help you look at your business and personal wealth together, establish what you may need for retirement and identify any gaps between where you are today and where you want to be.

Your business can absolutely be part of your retirement strategy. Just make sure your future doesn't depend entirely on it.