An article I read likened an entrepreneur to someone riding a lion. Onlookers are thinking “they’re brave” whilst the entrepreneur is thinking “how did I get on in the first place and how do I get off without being eaten?”
One of the big issues associated with getting off the lion i.e. exiting the business, is preparing yourself to do so. In this respect I am not talking about preparing the business for sale, considering taxation issues or other practicalities – I am talking about being prepared for the lifestyle adjustment.
Often business owners become inextricably linked to their businesses and being leader of such a business can form part of your own identity.
How, therefore, is this dealt with on exit? The focus of the professional and the client before a business sale is primarily on ensuring the client obtains maximum value and retains sufficient funds to meet their ongoing retirement needs. Long before we get to this stage it is equally important to prepare the client for a change in pace and mindset so that following the sale, the client still feels their life has a purpose.
We tend to find that business owners are optimists, who actively feed off the highs and lows of their business life. It is therefore important to have mechansims in place to replace these thrills. Unfortunately, the local golf course might not cut the mustard in this case.
In summary, be prepared for the potential hidden personal costs of exiting your business. By addressing this early and getting the right professional advisers to maximise your financial position, it is unlikely that you will ever look back after selling your business.
If you would like to start planning to exit your business, arrange to have a chat with Ollie on 01242 776000 or email corporatefinance@randall-payne.co.uk.
