Congratulations on Selling Your Business!
Now get back to work!
After you’ve sold your business, during the “fun” years, you make a shocking discovery. You are short of cash. So, back to work you go, hi ho, hi ho. Not what you planned. This is not an uncommon experience. How do you make sure it doesn’t happen to you?
This is the first of a series of blog posts about the team you need to successfully sell your business for the highest value and optimal results.
Selling your business was probably the hardest transaction you have made in your career. Emotionally it was probably like sending your child off to college or into the military. You worked hard to “raise” this company. You’ve spent many sleepless nights concerned about the company success. Can the business survive without you? Will you be remembered? Will the new owners understand the amount of work it took to be successful?
Or you could have the other feelings – glad to get that monkey off my back. No more will the bank have claim to my assets. Those customers are someone else’s problem now. Either way exiting from the business is an emotional roller coaster.
Or maybe you didn’t fully exit the business. Maybe you just transitioned to more family member involvement, or the business transitioned to an ESOP. Maybe the business even transitioned to the existing management. Now you can do more of what you want.
Getting Ready for the Transition
So if you haven’t sold your business yet, what do you need to do to ensure you have enough money when you start the “fun” years? Here’s 5 things you need to do today.
- Set your target date to leave and then back up 5 years. If your target date is less than 5 years out, well you have less time to do 5 years of work. Ever heard about stuffing 10 pounds into a 5 pound bag?
- Get a grasp on how much you need to retire to the level you’ve become accustomed to or the level you want to become accustomed to.
- Establish the current value of your business.
- Calculate the business value you need when sell. Remember business value and cash from the sale are two different things.
- Now how are you going to get from the value now to the value you need?
- Select your advisors to get you to where you need to be.
Oh, and most important, keep running your business.
Who are the advisers do you need to assemble? See the next post Swimming Hard Running Your Business? Here let me throw you a 100 lb weight
My role in this? As your B2B CFO® everything I do is to improve the life of you, the business owner. You are important to society. I have unique processes and tools to help eliminate the barriers to your success. Let’s talk about how I can improve your life.
Other blog posts in this series are:
- Already Swimming Hard Upstream Just Running Your Business?
- Make Your Dream Team a Success TeamTM Making the most of Exceptional Talent
- It’s My Party – And I’ll be the Best Host Ever! Or if you’re not the ringmaster of this circus then someone else will be!
I Bring Financial Knowledge, Provide Financial Training and GenerateFinancial Stability
I am fluent in “financialspeak” and can translate your monthly numbers into strategies for future success. I take companies to a higher level of success
Email : AndyAnderson@b2bcfo.com. Phone: 909-732-4917
Other blog series: