There are many things that come into play–both emotional and financial–when you decide it’s time to exit your business.
While the money received from the sale of your business can be life changing, make sure you’ve planned for the next phase of your life. Owners are deeply engaged in their businesses. They have invested a lot of time, effort, money, and emotional energy into building their company. It’s not uncommon for them to experience seller’s remorse and anxiety. After all, they’re facing a major change.
Planning and preparing for the transition to the big changes that are coming is critical.
Your preparation should begin a few years before you sell your business. As you get closer to selling, delegate more of your duties until the business is essentially running without you.
It’s common for a new owner to ask you to stay for a period of time to help with the transition. Just be sure that the parameters are crystal clear and in writing.
If you’re receiving a considerable sum at closing, have a good set of advisors in place. Tax and retirement planning are crucial. Just as you planned and prepared for your business, you need to plan and prepare for a successful exit.