I sold my business, now what?

The start of a new adventure

You did it! After years of building and buckling down, you have sold your business. Congratulations! A tremendous milestone. But where do you go from here? Your newly acquired wealth calls for a thoughtful approach. Together, we’ll explore the world of investing and seizing new opportunities. No abstract talk, but practical tips and insights for your next adventure.

Still involved in your business

The ‘now what’ question is partly answered by the structure of the sale.

Are you still involved in the business, operationally or in an advisory role, and for how long? Did you reinvest, for example through a loan to the buyer? Clearly define your level of involvement and time commitment to make room for your own future.

Have you handed over the business completely? Take the time to unwind and determine what truly matters to you.

Personal wealth planning

Signing the deal is an exhilarating moment, but it can also feel a bit surreal. You have entered a new phase of life – so, what’s next? One thing is certain: leaning back and leaving the money idle in your bank account is not a smart move and certainly will not satisfy your entrepreneurial spirit.

Where to start? Begin with personal wealth planning:

• Map out your expenses: What are your current expenses, and what future goals do you have? Do you dream of a second home, a world trip, or a financial safety net for your children?
• Assess your risk tolerance: How much risk are you willing to take with your money? Do you prefer peace of mind or the thrill of high-stakes ventures?
• Separate serious investments from risk capital, or ‘play money’: Identify what you need to secure your income and how much you can afford to risk.
• Consider your personal goals: Do you want to fulfil dreams, making a social impact, or embark on a new business venture? Incorporate what truly matters to you into your plan.

Take your time with this. It is the foundation for your next adventure!

7 Smart ways to invest your money

(It’s not just about stocks!)

Ready to put your money to work? Here are a few ideas inspired by successful entrepreneurs:

1. Private equity or venture capital funds: Invest in what you know – entrepreneurship. Whether in startups or established businesses, these funds provide opportunities often inaccessible to individual investors.
2. Become an angel investor: Backing startups you believe in is exciting and risky, making it ideal for your risk capital, or ‘play money.’ You could also join a group of entrepreneurs to spread the risk.
3. Reinvest in a new business: Perhaps you will discover that entrepreneurship is in your bones, and that is what you want to do. Whether starting a new venture or buying into an existing one, be mindful of any non-compete or non-solicitation clauses you may have signed during the transfer.
4. Property or tangible assets: Investing in property is still an option, but is becoming ever more complex. Alternatively, consider tangible assets like exclusive watches, fine wines, classic cars, or gold. Think it through, though: a 1967 Ford Mustang is appealing, but do not overlook maintenance, insurance, and storage costs.
5. Stocks and shares: The classic option. You can either invest directly in companies you believe in or join a fund that does the legwork for you. Diversification remains key.
6. Wealth manager: You do not fancy doing the research? Hire a wealth manager. Begin with a tailored plan and seek professional advice.
7. Enjoy your wealth: Treat yourself – buy that car, make that dream trip, or tick items off your bucket list. Life is too short to only work.

What to do after selling your business: the emotional aspect

Selling your business is not just a financial milestone; it is also an emotional one. After letting go, you will need to redefine yourself.

• Give yourself time: You have dedicated years to your business, so it makes sense to pause and reflect on your achievements and next steps.
• Talk about it: Share your experiences with other entrepreneurs who have been through the same process.
• Find new purpose: How will you spend your time and energy now? Will it be another business, mentoring entrepreneurs, a hobby, or supporting a cause? Find something fulfilling.
• Consider your family: The sale impacts not only you but also your partner and children. Discuss the consequences openly.
• Seek a mentor: A mentor can help you navigate your new path and offer guidance on emotional challenges.

In short, invest in yourself too!

New opportunities and challenges

Selling your business marks the end of one chapter but also the start of a new story. Discover what you truly enjoy. Whether it is starting a new business, supporting other entrepreneurs, or pursuing your passion, there is a whole world to explore.

Disclaimer: This article is for inspiration only and contains general information. This information should not be considered or used as any form of advice and is explicitly not a substitute for financial advice. Always consult a professional financial advisor for personal advice.