Are you finally at a point in your life where you can let go of your
business and not have to work to sustain your current lifestyle? If you
have reached your exit strategy goals, are looking at selling your
business, and your years of hard work and planning have finally come to
fruition, congratulations! Now, it’s time to savor this moment and
decide on your next move without rushing.
This is a
life-altering change that can be harder than it first appears. To
ensure the transition is as smooth as possible, we’ve put together a
few suggestions to help you work through the sequence of events that
you can expect when selling a business.
Selling your business
First,
it’s important to accept that it will take time to sell a business. You
might benefit from talking to other people who have sold their
businesses as you go through the process and continue to work to get
the price you want.Take it from our friend Jack Krasula who recently
sold his company for more than $120 million. “During the selling stage,
dont let up from the pedal until all documents are signed and you have
the money,” he states.
After the transaction, whether by
requirement or perhaps by choice, you may want to have an ongoing role
with the company. In such a case, Jack advocates that you continue with
the company only as a consultant and not as an employee.
Fools rush in
The
moment word gets out that you’re selling and bringing home a boatload
of cash, your phone will start ringing. You’ll be on the proverbial
“radar” of charities, wealth managers, people pitching business deals,
etc. But as Jack knows from his recent experience, “Dont be quick to
jump into the next chapter of your life.” He recommends a strategy that
worked well for him; wait a year before making significant moves and
obligations with your time or money.
Be active
Once
you have finished selling a business, and waited the requisite year,
you may be able to buy a sailboat in the Caribbean and spend the rest
of your life sailing, golfing or traveling. However, if you’re like
most die-hards who’ve built and run a successful business, you’ll
probably want to continue to do some kind of activity in your field.
After all, your skills are still valuable and it’s okay to keep
working, even if you do not need the money. You can use your skills to
do community service, help charitable organizations or even open a
second business, which would be easier to start than your first because
you probably have more cash resources, network, and confidence as a
result of your previous success. You’ve spent a life cultivating a lot
of capability. Don’t let that go to waste.
You’ve reached a
major milestone in your life where you can now enjoy the rewards of all
those years of sweat and tears building and growing your business. But
before you set sail for your tropical paradise, take the time to think
about what you are doing, how you will spend your money, how much you
will need to live the lifestyle you want,
and with whom you will share your skills and wealth. That way, you’ll
be more likely to enjoy even more success and happiness in your later
years.