Photo by Aaron Burden on Unsplash
The decision to build your own business is different for everyone. Some people do it to gain independence in their lives. This is often not how things work out, though, at least not really. Owning a business usually feels like a business owns you in the start-up days, and that independence you want is far from being reality.
Others choose to build a business because they want to prove to someone, if not themselves, that they can be a success. That they can be more than a drone in an office. Most choose to start their own business because they believe they can make their fortune that way. Which is possible. But it always takes more work, more time, and more struggle than anyone realizes.
Regardless of the reason for becoming an entrepreneur, there is a phrase that is often thought, if not voiced, and dreamed about, if not realized. The thought comes at the start of the business and will be the hope for when you are ready to sell it for financial gain.
“I’ll finally be happy.”
But is it happiness you should hope for? Or purpose? And can those two be successfully tied together after selling something you put so much effort into getting to a place to sell?
Identifying the Reason for Your Business
The closing chapters of your business being sold will be fast and furious. A whole team of people will be involved. The financial aspects of selling a business are discussed endlessly by anyone with experience. Valuations and terms and walk-away clauses. Everything reviewed, discussed, and finalized. Or not, if you’re not ready to sell, which is its own challenge. What most people don’t really consider is the first Monday after you have sold. The automatic wake-up, a sign from your internal clock that you are still ready to work. If you are lucky, you will have someone there with you to take that long-awaited vacation. To help usher you into retirement. But unless you understand why it is you are leaving your business, that will only be a temporary respite.
Understanding why you became an entrepreneur is key to knowing how to walk away, and that answer may change over the course of your business growth. In most cases, the business has become the owner’s identity, making it harder to let go and move on once the final signature is inked. They can no longer be Mr. or Ms. X who owns Business A. The caveat of “used to” has to be added in retirement, and it can feel like handcuffs.
Money Should Be The Tool, Not The Purpose
A successful exit doesn’t necessarily equate to a happy life. When the business is sold, and the banking and investment accounts have extra zeroes, you still must find a focus for your time, energy, and valuable experience. You might have found achievement in being a successful business mogul, but purpose should be the focus of the recently divested. But money shouldn’t be the purpose. Even golden parachutes lose their luster before reaching the ground.
So what can a person experienced in starting up, growing, and keeping a business running do when those tasks are no longer accessible? They can use their powers for good through charitable organizations, mentoring young business owners, or any of many other methodical and valuable pursuits. The wave of people who will soon be joining the ranks of the newly retired is coming, and the knowledge and financial power they bring with them can move mountains.
Retire To Something, Not From Something
The amount of detail and attention that goes into selling a business is justified by the outcomes. However, a common fault in the thinking and planning of ending a business for the person who started it is neglecting to consider how one’s time and skill set can best be applied when the noise goes quiet, and the itch for chaos of a startup begins. The founders who navigate the transition most successfully often have something meaningful in the works before the business ends. This helps solidify their conviction to sell because they are not selling simply to get away from a business. Instead, they are selling to move on to the next passion.
Successful Exits for the Former Business Owner
A successful exit is most often measured by the final check from people on the outside, but the person who sells must measure it by more than newfound wealth. They must measure it by what comes next. With that in mind, it stands to reason that post-business endeavors should be considered just as much as the final sale price before the meetings to discuss a sale take place. The financial freedom gained should be used as leverage to get what will keep the founder engaged, challenged, and…happy.
Are you ready to sell so you can take on your next challenge? Give us a call and let us help you work toward that goal.