The Four Fears that Every Business Owner Has About Selling
You’ve spent your life building your business, and letting go of it can create a lot of sleepless nights. Sunbelt Business Advisors has guided countless business owners through every step of their sale and we know about the kinds of concerns that may keep you up at night. In this blog post, we take a look at four worries you might encounter and how to address them head on.
Who Am I?
Maybe your name is on the door. Maybe you’re the person who signs the checks. Whatever the case may be, you’ve no doubt spent years building a business that is directly intertwined with your professional identity. It’s natural to develop concerns about your identity as you navigate the process of selling your business. But you don’t have to lose a sense of self and purpose after you’ve sold your business to a new owner.
In all the years you dedicated to growing your business, you also inherently developed a sharp business acumen that can help others. Even though you’re no longer in charge of day-to-day operations at your own business, you can still flex those leadership skills and find purpose in helping other business owners who are just starting their entrepreneurial journey. SCORE is the nation’s largest network of volunteer, expert business advisors. Keep your finger on the pulse of the business community while paying it forward and giving back to other business owners.
You can also apply professional acumen to a more noble endeavor: join the board of a non-profit organization. Help a worthy cause take advantage of your experience at a rate they can afford – free! Or maybe you’re itching to start another small business. Just because you’re stepping away from one business doesn’t mean you can’t walk into another profitable opportunity.
Eat, Pray, Love
For some business owners, the sale of their entity signifies the start of retirement. And while retirement brings on more opportunity for rest and relaxation, there’s no need for you to worry about spending your days fighting off boredom. This new time in your life gives you the flexibility to take up a new hobby. Perhaps you’ve dreamt of taking a cooking class in France or seeing the temples of Thailand. Now is the time for you to relish in the rewards of all of your hard work and diligence.
This transition also gives you a tremendous amount of free time to make new memories with family and friends. Whether you want to help coach a grandchild’s softball team or catch up with old college buddies, the sale of your business gives you the freedom to invest in your personal relationships with the people you love.
Money, Money, Money
Business owners naturally grow a bit concerned about their finances and whether they’re really equipped to transition out of their organization. By working with Sunbelt and a financial advisor, you can take proactive steps to ensure the sale of your business sets you up for Easy Street in your golden years. Our team can help you make strategic decisions that will maximize the valuation of your business and help prepare you for a future beyond reliable income.
A financial advisor will also be a critical part of your team as you proceed through the steps of selling your business. Experts can review your assets and investment portfolio and determine how much money you can expect to need for your retirement, including how the sale of your business can support those financial goals and expectations.
Is the Check Really in the Mail?
Whenever you sell a business, there’s another party you need to consider: the buyer. Some business owners may have concerns about whether the buyer will continue to make payments for the terms outlined in the sale agreement. One way to avoid this issue is to include terms in the agreement that cover default or termination, and possibly even specify collateral outside of the business. You can even require the future buyer to give you monthly financial statements from the business so that you can keep an eye on performance and head off any financial concerns before they become too much of a problem.
Whatever your worries, know that it’s natural to have concerns about a major life transition. But as long as you work with a strong team of advisors and take advantage of your newfound freedom and independence, you can head off any concerns about your finances and sense of purpose. Contact us and discover how we can help put you at ease and prepare for an exciting, new chapter in life.
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