One of the first questions I often ask of sellers that come to me looking to sell their business is “what will you do after the sale?”
In many cases, they know exactly what they will do, but regrettably the majority either don’t, or have a dream that may never be realized.
Being clear about the realities of the post sale event is of paramount importance.
If you are selling because the business causes too much stress in your life, you may want to be sure that such an event will truly remove the stress, since statistics show that often the stress comes from ways we view and handle things.
Selling the business may not provide you what you think it may.
Similarly, I some times here people talk about how wonderful life will be with the money they make from the sale of their business.
Again, statistics show that is not necessarily so.
Often times the money goes much faster than expected unless properly invested and pre planned.
Or how about how wonderful it will be to be home with the family only to find out that what kept the relationship going was the fact that you were not in each other’s hair all daylong…
So as you can see there is much to think about prior to selling your business that would benefit you and your loved ones.
Knowing where you are heading is just as critical as knowing how to get there.
So before you get too far down the road, I recommend the following:
Sit down with your family if applicable, your advisors and get clarity on what it is you will be doing post the sale event.
Be clear and realistic on how much forward room you have and ensure you engage a competent financial planner who’s objective is to ensure you, and your loved ones, are well taken care of rather than simply invest your money for a fee.
Make a realistic plan with the assistance of all necessary advisors to clearly articulate your vision.
But remember, that a vision without action is nothing but a dream, Action without a vision is nothing but a nightmare.
A clear realistic plan of where you want to be post a sale event will also help you get through the challenges you will undoubtedly face in the selling process.
Without such clarity, its easy to get cold feet, be worried, and make irrational choices and decisions that you could come to regret later.