There are a lot of different things to consider when you come to sell your business.
Important financial aspects such as what your business is worth, or how to reduce a potential tax bill on assets that you sell can occupy a lot of your time, as you grapple with the things you’ll need to do before you retire.
Crucially, alongside these financial considerations, you should also bear in mind that it’s a significant life change in almost every single way.
It’s vital to have a plan for this stage to help keep you steady and on course. Otherwise, it can be like shooting in the dark without even knowing where the target is.
As part of that plan, make sure you consider these three things if you’re planning on selling or exiting your business.
1. You should speak to someone who’s done it all before
Firstly, you should consider seeking guidance from a business owner who’s been through it all already.
Former business owners are a great resource of information for you, as they have personal experience of what it means to navigate through this transition.
They’ll be able to provide insight into:
- What post-work life is like, and how they found settling into it at first
- The kinds of things they’ve replaced work with to keep active
- Any financial aspects that you’re curious about or unsure of.
Seek out any former business owners you know and ask if they can share their wisdom of what it means to sell up and move on.
Alternatively, you could consider speaking to a professional, such as a financial planner. They will have helped numerous business owners to transition into this next part of life over the years.
As a result, they’ll intimately know the challenges you’re likely to face and be adept at helping you to deal with them.
Speak to us at Cordiner Wealth if you’d like to find out how our experience could help you.
2. You’ll likely change as a person
The majority of business owners are workaholics. It’s simply a part of the job description that you need to love and be addicted to what you do to make your business a success.
For many business owners, that means their identities can easily be wrapped up in their work, too. Having had that daily routine for so long can make it feel like part and parcel of who you are.
Of course, that means leaving your business is more than just a change of circumstances; it’s a fundamental change of who you are as a person.
Rather than waking up early and tackling emails, you won’t have this pressure in retirement. If you have a “go-getter” type personality, this might feel like a shock to the system not to have something to do at all times anymore.
So, remember to factor this into your decision-making so that you don’t suddenly feel lost or at sea without your work.
To reduce the impact of this, you could consider working part-time or in a reduced capacity first before you sell the business, so you can get used to having less work on your plate.
Alternatively, you might want to find a replacement activity to fill the void that work can leave behind. This could be something like volunteering, or something as simple as increasing the number of times you head up to the golf course for 18 holes.
Seeking support at this stage can help to keep you on an even keel. A financial planner can gently guide you through what can be quite a tumultuous and fundamental change to your character.
3. You need a plan for life after work
Most importantly of all, you need a plan for what you want out of life once you finish work. Otherwise, it’s more like making decisions at random, rather than informed and calculated choices that serve a purpose for you and your family.
So, ask yourself: what do you want to achieve from your retirement? Do you want to travel the world? Maybe you want to move to a larger home in the countryside, or buy a luxury sports car that you’ve always wanted?
Or perhaps you simply want to spend as much time with your children and grandchildren as possible?
Whatever your goals are, make a mental note of them and keep them in mind whenever you’re making decisions about your future. Remember to discuss these with your partner and your family too, so that everyone knows where they stand.
This plan can inform a great deal of the financial side of your sale, too. For example, having a plan might offer you a target for how much you really need out of the sale of your business.
Having a concrete figure for how much you’re likely to need to achieve those life goals can make it far simpler to make incisive decisions on the pounds and pence when you finally decide to retire and move on.
Work with us
If you’d like help seamlessly transitioning from your business into your post-work life, please get in touch with us at Cordiner Wealth.
We’ll create a plan with your goals in mind to make sure you remain on an even keel throughout this new stage of your journey.
Email email@example.com or call 0113 262 1242 to speak to an experienced adviser.