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Business owners who sell their business are often looking forward to slowing down and living their life at a different pace. For most, the process of selling your business becomes all encompassing. You will negotiate with buyers, have lawyers help you with the business structure and have your accountant look over your tax liability. As you make economic plans for your future, it is important not to forget to make personal plans as well.
For Example, Adam Aardvark’s story shown in italics is the same for many who sell their business.
Adam Aardvark had just turned 62 years old. He had a buyer for his business and was very excited. He finally was going to get paid for all of the years of hard work he put in. Adam had worked 60 hours per week for the last thirty years. He was looking forward to taking a step back and living life at a little slower pace.
Not only did Adam work 60 hours per week, he also was very active in his local and national trade associations. He liked to play golf, ski a little, but was not involved in any local charitable or community organizations.
It can take a tremendous amount of energy to keep a company going. Many owners of private businesses more than likely have a great deal of personal energy. They often believe that when they leave their business, they can just turn off their energy and live a slower life style.
Becoming a non-person in your industry
But, Adam had not done anything about the psychological changes that were likely to happen in his life after he exited his business. Adam sold his business. It is now six months after he has left the company. He thought he had many, many close friends in his industry. He was surprised when his friends didn’t call. When he tried to reach out to them, he felt like they were pleasant but he also felt they brushed him off.
When you sell your business it’s important to understand that you most likely will not maintain the relationships that you had while running your business. The sad fact is that most of our business relationships are based around the commonality we have in our industry and business. When you leave your business those things you have in common go away as well as the relationships with others from your industry.
Most of us who run businesses, think about our business and the issues that can make them successful regularly. Often our acquaintances in, and out, of our business also have the same interests. You will find that acquaintances you develop after you sell your business are not very interested in business issues.
After your business sale you might find the people who had similar interests to you live on a different time schedule. When you have time and interest in meeting others, your business friends probably are working. You will need to either find other interests or a new business to get involved in after you sell.
Some Options
Adam was very lonely. He had thought that after he sold his company, he would be welcome to hang around with his friends from his industry. Instead he found that he was becoming more and more depressed and feeling more than a little useless and out of place in his life.
Adam could have begun planning for what life would be like after selling his business. He needed to consider more than the economic planning that went into getting his business ready to sell and then selling it.
We suggest strongly that as you begin the exit planning process you also include planning for how you will spend your time in the next stage of your life.
We suggest that you think about the following issues as you plan the exit from your business:
• Two to three years before you leave your business begin exploring other activities and projects that can keep your mind engaged.
• Understand that achievement has been important in your life. You may want to find new ways of fulfilling your need for achievement after your leave your business.
• Look for Two to three years before you leave your business begin exploring other activities opportunities to embark on projects that allow you to use the skills you’ve developed running your business.
• Write down goals you would like to accomplish after you leave your business. Treat this process like a planning project you would use when running your business.
In our Stage 3 planning process we help ensure clients gain clarity on the issues above. We know it’s not only important to economically plan for a successful exit, but to also answer the question of “what’s next”. If you would like more information on this issue, please feel free to contact us at your convenience.
If you would like more information on our firm, please visit us online or e-mail us and a Stage 2 associate will get back to you.
With Warm Regards,
Stage 2 Planning Partners
Josh Patrick © 2006
These examples are hypothetical in nature and provided for educational purposes only. Actual results may vary depending on circumstances.
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