Your business was born. You nurtured it for many years and gave your best to it.
Many nights of sleeplessness, taking huge risks, and making decisions that no one could understand was part of your life. You believed in your vision, and it grew into adulthood.
How can you let go? How can you let go and embrace the next phase of your life?
This is not a unique mental and emotional challenge.
In the final stage of business development, many founders selling their businesses have conflicting emotions. They often feel that their increased economic freedom comes at the expense of their identity.
We have heard it all from business owners going through a business transition.
It’s hard to sell because you have invested money, time, and your soul.
“A part of me was happy, but another part was sad.” The office was like a second house.”
What’s your vision for your life after your business is sold? You and your family must decide what you will do next. This is a time to focus on personal fulfillment, wealth planning, and a bigger goal.
The power of emotions
Selling your business means letting go. This can lead to a significant change that has powerful emotional effects. It cannot be evident for some owners. Others feel a sense of joy. Many people talk about feeling depressed and lacking purpose.
Here are the comments from business owners.
“I felt very muted. It wasn’t easy to understand. It was a new reality that I needed to accept.
“I had worked hard for a while. It was amazing to do nothing at the beginning, post-exit. It’s common to say that you become bored. But I wasn’t. It was amazing.”
You. Your family. Your employees.
Your business is a reflection of your core values and what you do.
Most often, the root of the problem is the need for more clarity about whether your sale proceeds can replace the income you depend on to finance your lifelong spending goals.
Family members may be affected by your decision to sell the business. It could also affect their wealth and status. Therefore, it is essential to have a conversation with them early for harmony and a smooth transition.
Key employees should be involved in the transaction. This will ensure a smoother transition and maximize earnings.
All these essential considerations aside, clearly defining your desired outcome is crucial. Then, take prudent steps toward your goal, and you will see the path.
Six strategies to help you let go of your baby
Your desired outcome is what you want. This will help you to envision your life after the sale. Six strategies have been identified to assist:
- Recharge. Do you need to recharge? Are you looking for some time to think? Do you need to refresh and escape? Play and relaxation will open up your creativity to new ideas.
- Know your number. What amount of money do you have? Are you able to make your wealth more life-changing? Highly qualified financial advisors can do these types of analyses. Our team at UBS Private Wealth Management, the Entrepreneurs Group, guides all clients through a modeling process called S.E.L.L. Strategies for Life’s Liquidity to help clients understand different scenarios and what amount of liquid assets they might need from a sale to be confident that the proceeds will allow them to fund their lifetime spending plans.
- Recruit Deep Support. What professional advice are you looking for? Do the right advisors surround you? Look for advisors who are experts in your situation, such as an accountant, business attorney or executive coach, or financial advisor. The right quarterback will work with all parties to coordinate and represent your interests throughout the process.
- Family. How can you support your family financially? How should you allocate money for education and home purchases? Writing helps to clarify thoughts. Write down all your family responsibilities and those who fall under your care. Make a budget and prioritize your resources accordingly.
- Legacy. What should it be? This is the final stage of many business owners after moving from survival to success and now into significance. You can find great inspiration in green-light thinking in these areas, whether it’s charity, needle-moving Philanthropy, or family foundation legacy.
- Opportunity. What can you do to find your fulfillment for the future? What can you do to serve others best? Your professional life is about to be rewritten, whether in another job, business, or personal venture. You have the right to start from scratch. To begin anew, let go of past archetypes.
It doesn’t matter if your transition occurs in a few months or over several years. It would help if you planned for your future.
Beyond the Six Strategies: How to see what you’re not seeing
You can do many things as an entrepreneur in the time leading up to your decision to sell.
Take advantage of critical pre-sale steps. You will benefit from the guidance of a pre-and/or post-sale planning team familiar with the processes and has a framework.
