What Can You Do After You Sell Your Business?

The decision to sell your business isn’t taken lightly, but sometimes the opportunity is too good to pass up. Often, that leaves business owners in their 30s, 40s, or 50s with a lot of money, few responsibilities, and many years ahead of them to fill with a purposeful existence. 

Depending on your personality, obligations, and goals, the road ahead will look very different from another business owner in a similar position. Taking the next step can be an overwhelming prospect, but one that can get you started on an exciting journey funded by your years of dedication to growing your business. 

Speak with a Financial Advisor

Ask any past lottery winner who ends up broke a few years later what they would have done differently, and there’s a good chance they’ll say that they should have worked with an advisor to put their money to work. 

A sudden windfall is a temptation to buy everything you’ve ever wanted, but if that’s your chosen route, you’ll soon find yourself with a dwindling bank account and no income source to fall back on. 

Don’t be afraid to be assertive about your financial goals, but you should also be willing to take their advice seriously. They can show you promising investment options, help you allocate funds to your various trusts, and think realistically about how far the profits from your sale can take you. 

Pay Off Your Debts

Before you start booking lavish cruises or diversifying your stock portfolio, take care of any looming debt you have.

Depending on the windfall from your business sale, you could take care of your mortgage, car loans, student debt, and any other financial obligations, then never have to worry about them again. 

Not only does that prevent you from holding off creditors should something happen later down the line, but it also gives you a more realistic view of the cash you have on hand, allowing you to plan years into the future without worrying about your finances. 

Reinvest in a Passion Project

Many business owners are serial entrepreneurs, pursuing venture after venture, then selling once it proves profitable. 

While that is a viable option for those who want to spend their lives working in their business, it’s not as fulfilling as they’d like it to be for others. 

Instead of diving right into a new business, consider investing that money into something you’re passionate about, regardless of whether it will make you a lot of money. 

There are a lot of opportunities to establish yourself as an online seller for products like renovated furniture, woodwork designs, refurbished vehicles, or art, depending on where your personal interests lie. 

Recuperate and Reconnect with Loved Ones

As a business owner, there’s a good chance that you’ve sacrificed many hours, days, and special occasions with loved ones for the sake of keeping your company afloat. 

Now that you’ve put in years of hard work, reward yourself by rediscovering who you are and making up for all those missed moments. 

Take a vacation, complete all those projects around the house you’ve been promising yourself you’d do, or just invite your family for breakfast once a week to start a new tradition. 

Don’t let the complex emotions of selling your business trap you inside your home while you mourn your losses. Instead, celebrate a successful venture with the people who stood by your side. 

Get Involved in Your Community

Owning a business puts you in a unique position within your community because it requires you to be deeply involved with the political, financial, and infrastructural reality of the city where you’ve established yourself. Your business sale doesn’t have to mean the end of your involvement, though. 

Philanthropy is an excellent way to address some of the issues you dealt with as an owner and pave the way for future generations to become successful entrepreneurs. Consider providing your expertise to low-income communities, volunteering your time to an understaffed cultural resource, or taking a role at the local elementary school as a bus driver or lunch monitor. 

In doing so, you’re giving back to the same people who helped your business see success over the years and giving your post-sale life purpose outside of being a business owner. 

Are You Considering Whether to Sell Your Business?

The decision to sell your business and one that you shouldn’t do alone. Working with an exit advisor is the best way to understand your options and create a long-term plan that will get you the best return on your investment. 

The key, though, is starting early. It’s rare that opportunities to sell for vast amounts of money just fall into your lap. It requires preparation, value-building, and clever resource management to establish your business as a worthwhile venture to interested buyers. 

Catalyst Group ECR is devoted to partnering with clients to create a creative process that maximizes professional and personal potential.

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