Selling your business can be one of the most important decisions you’ll ever make. It affects not just your financial security but your professional and personal identity. It’s surprising that many business owners suffer from the seller’s remorse following the sale. Based on the Exit Planning Institute, 75 percent of business owners deeply regret selling their businesses after an entire year. This number highlights the importance of creating an enlightened and clear idea of what to do following the sale.
A clearly defined post-sale plan ensures that each decision you make during the transaction process is in line with your long-term objectives and helps you avoid regret and make the transition efficiently. As seasoned business advisors, we’ve aided numerous business owners through this process. Here, we’ll outline the four main areas to concentrate on when you think about the future of your business following the sale, with additional questions and suggestions to guide you through every step.
Individual Goals Getting satisfaction beyond the business
For many, running an enterprise is not just a source of income. It’s an integral element of their persona. If you don’t have a plan to achieve your own fulfillment, the change may be difficult to navigate. Knowing what drives and excites you beyond your company is the very first stage to making a successful post-sales lifestyle.
The Most Important Questions to Ask:
- What type of life do I wish to live after I sell my company? Will it focus on travel, relaxation or taking on new challenges in my life?
- What interests or passions have I ignored in the course of managing my own business? Identify activities or projects that are social, imaginative or exciting that you’ve been putting off.
- What are my goals to improve myself as a person? Consider how personal growth, like learning new skills or interacting with your community might play an important role in the next chapter.
By answering these questions you can ensure that your decision to sell will lead to the pursuit of a goal and fulfillment.
Professional Ambitions: Defining Your Role in the Next Chapter
Selling your business shouldn’t necessarily mean you have to quit your job completely. Certain business owners find meaning in remaining connected to their business, whereas others are keen to investigate new opportunities or completely new avenues.
The Most Important Questions to Ask:
- Do I wish to remain connected to my company? Roles like consultant or board member advisor let you stay engaged without the stress of running your business day-to-day.
- Are I looking forward to starting something brand new? Selling one business could help fund your next venture in entrepreneurship. What are the industries or possibilities that pique your curiosity?
- What professional goals do I not yet achieved? Whether it’s pursuing advanced studies or coaching others, think about the ways this change could broaden your professional opportunities.
The answers you provide to these questions could help your advisors and business broker to design a deal that meets your professional ambitions.
Financial Considerations: Building a Strategy for Long-Term Security
The earnings from selling your company do not simply pay for a payday, they are the basis for your future financial security. A well-planned approach ensures that these funds are in line with your professional and personal objectives.
Essential Questions to Think About:
- What is the amount I really need to earn from selling my product? Assessing your financial requirements is crucial and often uncovers differences between what you expect and what is actually happening.
- What’s my investment strategy for sales proceeds? Whether it’s retirement planning, financing an idea for a new venture or helping out with family expenses with a plan, having a strategy in place will ensure your wealth will be protected and continues to grow.
- Are you interested in leaving an inheritance? Consider how charitable donations and trusts or estate planning could aid you in supporting the causes you love or your loved ones in important ways.
Talking to a business consultant early will ensure that you can tackle these financial decisions with clarity and confidence.
Transition and Downtime: Preparing for Life After the Sale
The transition from a high-speed entrepreneurial life to one that is more sluggish isn’t easy. Many business owners who have been in the past are struggling with their lack of organization and direction they had in the past. Being prepared emotionally and practically for this change is crucial.
The Most Important Questions to Ask:
- How do I adjust to slowing down? Without the daily requirements of running a company How do you organize your time and keep an attitude of focus?
- What steps can I do to remain active and motivated? From travel to fitness goals, or volunteering Staying physically and mentally active can help ease the transition.
- What is “taking an absence” means for you? Whether it’s a vacation or simply reducing commitments, decide the concept of recharging for you.
Making a schedule for this time can assist you in embracing the change, rather than feeling lost.
Your Vision Defines Your Outcome
Selling a business is much more than just a transaction in the financial realm. It’s an essential, life-changing experience. It’s not just about the selling price or the terms, but rather how well the final outcome is aligned with your goals and career aspirations and financial requirements.
Spend the time to think about these issues deeply. Your clarity will assist your advisors and broker to plan your sale in a manner that will help you achieve your own idea of the future.
To ensure that you are financially prepared, you should consider the calculation of to determine your freedom score. This detailed test will give you an the information you’ll have to earn through the sale to finance the next stage that you will go through in the course of.