Do you or someone you know own a business and are considering a change? If so, this article offers some important factors to consider.
For years, your business has been your identity. The title on your business card, the rhythm of your days, the problems you solve are all deeply intertwined with who you are. As you contemplate selling the company you’ve poured your life into, have you considered the personal changes that come with the sale?
This question is at the heart of why nearly 75% of owners regret selling their business just one year later. Your financial plan can be perfect, but without a personal plan, the newfound freedom can feel like a loss.
A successful transition includes intentionally separating your identity from your professional role to discover what truly drives you. Here are two indicators that you are personally ready for the transition, and strategies to help you get there.
For many owners, success is measured by what you do: close deals, manage teams, and drive growth. But personal readiness begins when you shift your focus to who you are at your core. Your most valuable assets are not your company’s balance sheet, but the values and skills that bring you a sense of purpose.
Strategy: Take a Contribution Inventory
This simple reflection exercise helps you uncover the personal values that will fuel your next chapter. Identify three instances in your career when you felt the most energized and fulfilled. Don’t focus on the business outcome. Instead, analyze the action and the feeling.
| Was it when you mentored a new employee and watched them succeed on their own? | Your value is teaching. |
| Was it the late nights you spent brainstorming a solution to a complex operational problem? | Your value is creating. |
| Was it the satisfaction of resolving a difficult customer issue? | Your value is problem-solving. |
These values—teaching, creating, problem-solving—are not dependent on your title or your company. They belong to you. Recognizing them helps you see that your identity is much more than just your business.
The advisory team you assemble to sell your business is skilled at navigating the transaction. But you also need a support team to help you manage the personal and emotional complexities of your transition.
Strategy: Build Your Personal Board of Directors
Your Personal Board is a small, curated group of three to five trusted individuals whose role is to support you, not the deal. This is a group of peers, mentors, friends, or even a professional coach who can act as a sounding board for your personal journey.
This is the group you turn to when you need to talk through the tough questions:
Building this support system provides a safe space to be vulnerable and explore your future with people who are invested in your well-being, not just your net worth.
Preparing for what comes next is the key to a transition free from regret. When you know who you are and have the right people around you, you are ready to step confidently from ownership into a new world of opportunity.
Susan M. Renaud, CFP®, CEPA
Senior Financial Advisor &
Business Transition Planning Specialist
Office Phone: 603.640.2691
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