Selling your business can present a variety of questions, challenges, and avenues for you to explore. The most significant question that can arise is: what to do next? Formulating a plan prior to exiting your business is an effective way to navigate the complex emotions and potential challenges that can arise during the sales process.
There are numerous important decisions to consider when formulating a plan for what to do after your business sells: including building a budget, and strategic consideration of how to reinvest and structure the use of your new capital.
Creating a budget is essential, this includes taking into account the change in your income following your business sale and having clarity on your expenses and tax requirements in order for you to develop long-term financial goals reflective and true to your changed circumstances.
If your primary reason for selling your business is a desire for retirement, building a sensible and realistic long-term retirement plan that aligns with your lifestyle goals as you move onto this new and exciting phase, is imperative. Going over this process with a fine-tooth comb will enable you to transition into retirement feeling secure and comfortable about your financial future.
There are several opportunities to consider when reinvesting capital, where and how being key factors. This can range from investing into your interests, personal & professional development, as well as owning a business. Your options are endless.
Diversifying your investment portfolio is key to long-term success. This can entail investment into a new business, startups, stock, real estate, or even joining forces and investing into highly successful existing businesses with other entrepreneurs.
When deciding to reinvest your capital into startups or established businesses, there is also an opportunity for you to pursue sharing your expertise and insights. Serving as a mentor, advisor, or board member can be incredibly fulfilling.
If you decide to reinvest your newly gained capital following your business sale, building a clear and detailed budget and financial plan to secure your future beforehand can be very beneficial. This not only streamlines the sale process and removes worries or hiccups regarding your financial future after your business sale, but it also provides an excellent opportunity to explore exciting new acquisitions and prioritise your future!