Selling your business is an exhausting process. As explained in the previous post, it contains a lot of planning, consulting, meetings and negotiating. But, it will eventually end. And when it does, what will you do?
There are various questions often left unanswered during the selling process. Here are some:
- Will you stay in the industry?
- Will you start a new business?
- Are you going to buy a vacation home?
- Are you going on a vacation?
- What are your plans with the money?
There are countless questions that will eventually pop out of your head — before, during, or even after the transaction. Oftentimes, business sellers don’t have a concrete plan to follow after selling the business. That’s why you should also include in your action plan your life after the sale. Here are after suggestions recommended by our business brokers melbourne.
Take time to adjust
Take a breather because the whole process of selling the business is physically exhausting and mentally draining. Also, the after sale lets you enter a transition period that could take months or years before you can say you are ready to face a new challenge. Make sure that the money is well-managed, which you can seek the advice of professionals, to avoid troubles in future endeavours.
Move and get organized
During the adjustment period, there are many things needed to be done. You will need to draw up a new balance sheet and record your money in order to track it — of course; you’ll need funds to survive, while taking care of the remaining balances needed to be paid, such as tax.
Moreover, your money is in different places — can be in a family trust, a holding company and several family accounts — and that is why getting everything organized can help, or you can hire a part-time bookkeeper to do the job for you.
Know your tax liability
Getting organized also means knowing your tax liability. Before making any new ventures, make sure to acquire a copy of your tax liability and know when it’s due. There are many ways to work around taxes, business sellers can include insurance and philanthropy in the plan since it also helps increase your net worth in a short time.
Perform an audit on your current estate plan
After selling the business, your estate plan may not work with your current situation. Is your business still included in your will? Or are there any provisions that deal with the company’s shares of your business that is sold? These are just among the questions that you should consider in your current estate plan and must be solved quickly to avoid trouble and misunderstandings.
Talk to family members
You are not the only one affected by the transaction, family members, too. Many business sellers have already explained the importance of speaking with key family members of the new reality the family is facing. There are changes that they need to be aware of to avoid misunderstandings and unpleasant consequences.