After The Exit: Life After Selling Your Business
What do you do once you have sold your company? While you have had plans to retire or start a new venture, there is typically a feeling of, “I sold my business, now what?” Emotions and doubts after selling a business are common. Taking time to gain clarity on your next steps is an effective way to plan what you will do after selling your business.
There are various things ex-business owners do, from going on vacation to diving into training the new business owner. There are a few factors that determine what you do after selling your business, and there are a large number of emotions that you will feel after selling your company.
The Emotions You Will Feel After Selling Your Company
Selling your company may leave you feeling empty or jumping for joy, or both. Yes, many business owners are extremely excited about selling their business, but while there is a large amount of profit, there can be a feeling of loss.
When you put years of work, thought, and effort into something, it can be hard to let it go. Preparing emotionally to sell your company can make the time after your company is sold more enjoyable. Rather than feeling the loss of your company, you can feel that you and your family have gained a new stage in your life.
Think about when you graduated high school, college, got married, moved to a new location, or had your first kid. All of these events are similar to selling your business because you enter into a new timeframe of your life which is exciting. While it is exciting you also have to say goodbye to the timeframe you are leaving.
Factors That Affect Life After Selling Your Business
One of the best ways to manage your emotions after you sell your business is by focusing on the new challenges or exciting aspects of selling your business.
Financial Factors
After you exit your company, you need to take a look at your financial situation. You probably managed your finances with the help of an accountant, but there can be unexpected costs in selling a business, such as sales tax, capital gains taxes, and closing costs.
Whether you are retiring or getting ready to start your next business venture, you should be aware of your finances. Organizing and preparing your finances should be done almost immediately after you exit your business.
Post Sale Planning Factors
After the sale of your business, you might not be done. A lot of business owners remain at their sold companies to help the new business owner take over. With this post-sale planning comes a lot of strategies.
You and the new business owner, the buyer, have to effectively transfer your leadership and ownership of the business. The largest aspect of this transaction is the transfer of leadership. Your employees need to follow the new owner’s lead. This can be a difficult process, but it is obtainable. A well-done transition goes a long way to retaining employees for the new owner.
Some business sellers stay on for many years after selling their business, and some only stay on for a day or two. It really depends on the desires and needs of the buyer and seller.
Next Venture Plans
If you are not planning on retiring but starting a new business, it is time to get to the drawing board. Now that you know how much capital you have from the sale of your business you can effectively take it and finance your next venture.
Retirement & Vacation Planning
Retirement planning primarily involves financial planning. When that is complete, you can plan your first vacation. It is a good idea to go on vacation after selling your business. This will help you adjust and transition out of work without being stuck at home. And you will give yourself a reward and a great start to the next chapter in your life.
The Path To Retiring After Selling Your Business
Retirement can be difficult. When a company owner retires a large number of responsibilities are shed. With the lack of responsibilities, business owners can feel a lack of worth and drive. Combined with a large amount of time, boredom and aggravation can develop in retirement.
It would be best if you considered planning your retirement. How do you plan your retirement? Take the time that is now available to you and organize it. You can dedicate your retirement time to:
- Exercise
- Relationships
- Travel
- Personal Projects
- Hobbies
These are among many things you can do after selling your business. Learn how to retire from your business effectively and make the most of your new chapter in retirement.
The Path To Starting A New Venture After Selling Your Business
Starting a new venture is exciting, but if possible, consider taking a healthy break after you sell your business. After having invested a large amount of time into your last business, it is good to take some time off.
Waiting before you start another business will help you to have a clear mind. When starting a new venture you will want clarity in your purpose and planning. You will also want to have your finances prepared and organized for business growth investments.
We hope this article has helped give you some ideas for what to do after selling your business. Contact us if you want to learn more about your options for a business sale.