You have put a lot of effort for a long time to develop your business to its fullest potential. The success of your company will determine whether selling it is a smart decision. Selling your company can be a successful and rewarding investment that will add even more to your achievement. When you get to this stage, it is critical to develop a business exit plan early on, so you know your next move. Selling your business might possibly be the largest single influx of money you have ever received.
At Saddock Advisory, we can guide you ever step of the way when you sell your business. You may be left with questions about what exactly to do next. You should feel confident to know that our financial experts are here for all of your business needs.
Helpful Tips to Consider When Selling Your Business
1. Celebrate Your Achievements
First, it is important to take in your achievement and celebrate with your loved ones and supporters. Why should you celebrate? Well, not every business is successful enough to reach the point that you have. Allowing yourself to experience a sense of accomplishment will inspire you as you get ready for your next endeavor.
2. Set Financial Goals
There are many things that are going to change, and selling your business will impact your personal, financial and professional life. At first, this may be overwhelming. As with anything, setting financial goals will help you focus and sustain the momentum that you had while making money. Identify your short term and long term goals which align with your vision. Setting financial goals will help you understand how much money you have to work with. This is for both the short-term and in the long run or for a new goal that you may have.
3. Manage Your Income
After successfully selling your business, you need an investment strategy that will help protect your proceeds. You can choose to do that on your own or you can get assistance from our financial experts to ensure you manage your money the best way possible. Let’s explore some of the ways you can manage your income.
Diversify Your Investment Portfolio
- After the sale, you will receive a lot of cash, and in order to protect the proceeds, consider a strategic plan. This is important because in this economy, to have financial security and prosperity you cannot rely on one source of income. There are various choices like a combination of mutual funds, stocks, bonds, money market accounts, and real estate. Consult with our financial advisors to guide with your personalized diversification plan.
Setup Your Trusts and Retirement Plan
- Given your significant increase in net worth, it is important to prepare yourself for the future. There is no worse feeling than walking away with what you think is a significant return, only to see it disappear without investing for your retirement and not leaving an inheritance. It will be more beneficial for both you and your family to have a well written will and setting up a trust to make life easier for them.
Review Liability Protection
- After selling your business, you are exposed to more cash and assets, so it’s a good idea to invest in an insurance plan. Even though your business will no longer be under your name, it is still possible for a past client to issue a lawsuit. You are still responsible for your prior actions even if the business has been sold. It is time for you to critically analyze both your personal and business investment to gather how much protection you have from being liable in case of anything. The most common piece of advice, is to form an incorporation and make the entity liable instead of you.
Remember Your Tax Obligations
It is best to consult with a tax expert when you sell your business. The tax factors change a lot after selling a business. It is important to fully understand the tax implications before you mark the business as sold and move on with your professional life. Whatever you decide to do after, make sure you understand the tax situation. Seek out the advice from a tax accountant with experience in business transactions to figure out ways to take advantage of the opportunities available.
Saddock Advisory Help You Manage Your Wealth
Running a business can be very time consuming, which leaves little time to plan for a business exit and your financial security. A successful business departure takes years of planning. We can help develop an operational strategy that will help you obtain an exit on your terms at a valuation you want.
Saddock Advisory can assist you in preparing your personal finances, so that you can profit from financial gains and tax advantages as a result from selling your business. Together we will create an investment strategy that is personalized to your needs. Contact us today!