This is the third instalment of a multiple part series on selling your business. I have previously covered planning the sale and making the business more attractive, and again we are talking planning but this time more specifically about your life after the sale.
This topic plays into your overall business exit plan and should be an important question you are asking yourself, “what am I going to do after I sell my business?”
Life After The Sale
For almost all private and family businesses, especially those where the owners are also the managers, the business is their life. They love doing what they do and they get paid handsomely. What commonly happens after a business exit is that the owners can get lost, get bored and some enough want to do something else.
You see the purpose behind selling a business is to give you something you don’t already have now, otherwise why sell right? This is usually to free up time to be spent elsewhere and free up funds to invest elsewhere. So let’s start to plan out what the re-allocation of time and money looks like.
Here are some questions I have put together that you should ask yourself to help plan your life after the sale:
- why sell the business and why now?
- what will selling the business allow you to do that you cannot do right now?
- how will that make you feel knowing you can do these things you wish?
- what are the consequences of not selling the business?
- how do you plan on spending the freed up time you will have?
- how do you plan on allocating the business sale proceeds?
- do you wish to retain a passive position within the business such as an advisor or board member?
So the lesson to take from these first three articles of Business Exits is that planning is a vital component of the process and should be given the respect it deserves.