Starting your own business is an exciting endeavour that requires unwavering dedication, strategic planning and countless hours of hard work. As you build and nurture your business, it becomes more than just an entity – it becomes a part of your identity.
However, there comes a time in every entrepreneur’s life when you must decide to leave your business. Whether driven by a desire for new challenges, shifting priorities or simply the right moment, transitioning out of your business opens up a new chapter of possibilities and challenges.
But what lies beyond the business exit? After all, navigating this uncharted territory demands careful consideration of not only your aspirations but also of the financial implications that come hand-in-hand with such a transition.
However, there are ways to prepare for it. From preserving your wealth to realigning your goals, from embracing change to setting the stage for a fulfilling future, this guide presents you with the top 10 tips to follow after exiting your business to help you thrive in the next phase of your remarkable journey.
Consult a Tax Expert
A critical step many exiting business owners often miss. Engaging with a tax advisor well before your exit can help you save significant amounts of money in the future. They’ll guide you in wealth preservation, inheritance planning and other tax nuances. Moreover, they’re usually well-networked and can help you get the contacts you need to start the next stage of your entrepreneurial journey.
Evaluate Your Living Expenses
Before you exit your business, assess how much you’ll need annually to keep up a comfortable lifestyle. For many people, this will typically be between $100-200k. Safely invest to achieve this, whether it’s through a fixed income or investment funds. By establishing this solid financial foundation, you’ll have peace of mind by the time you do transition out of your business.
Diversify, Don’t Hoard
Some business founders, post-exit, turn overly cautious and narrow the type of investments they make, often only choosing low-risk or familiar investments. Instead of becoming excessively protective, aim for a balanced investment mix. Remember, while low-risk investments might sound safe, they can often lose value to inflation over time.
Invest Strategically
The funds you’ve saved after your business exit can now open doors to better investment opportunities. Whether you’re looking at venture capital, private equity or other avenues, consider making meaningful, informed investments that align with your financial goals and risk tolerance. Remember that the investment journey is not a sprint, but a marathon. Building and managing wealth takes time, patience and adaptability.
Draft a Life Blueprint
Clearly outline your long-term goals. Having a clear vision for your future helps you plan various decisions, such as making changes to your residence and other future commitments. You’ll also be better at knowing which professionals to reach out to help you reach your goals and what articles to research to learn more about how to grow wealth from different perspectives.
Pen Down Your Will
Writing out your will early is crucial, especially for avoiding heavy inheritance taxes. It also helps you figure out the legacy you wish to leave when you pass. Likewise, you’ll have more time to look into specialised choices, such as Islamic wills, and work with your tax expert to help align them to your future aspirations.
Work On Your Personal Growth
Ever wanted to learn a new language, code or gain more Islamic knowledge? Now’s the time. Consider your business exit a time to work on yourself and reflect on your spiritual and mental wellbeing. By the time you return to the business world, you’ll be refreshed and ready to work on your next project.
Engage with the Community and Public Sector
The wealth you’ve saved from your business venture can be influential. Use this wealth to support political endeavours, fund scholarships or sponsor cultural events that enhance society. By doing so, you’re not only empowering your local community, but also investing in a future that benefits generations to come.
Give Back, Thoughtfully
Giving back and helping those in need is indeed commendable. But it also helps to reflect on why you’re donating to a cause. Invest time in understanding the impact of your contributions and the organisation you’re giving to, as this can enhance the effectiveness of your philanthropic efforts.
Consider a New Venture
If you’ve been successful once, why not try again with a new business? Use the wisdom and expertise you’ve gained from developing your previous business to lead to larger, more fruitful ventures.
In the world of starting and running a business, the journey is full of hard work and dedication that shapes both the business and the person behind it. When it’s time to move on from your business, this guide strives to serve as a compass for navigating the uncharted territory beyond. From financial strategies to purposeful investment to individual growth, your business exit can evolve into a gateway for building a legacy that has an enduring positive impact. Chart out your future meticulously and harness the opportunities ahead.
At MCCA, many of our clientele are founders who’ve successfully exited their ventures. If you wish to network with peers on a similar journey, reach out to us at MCCA. Wishing you continued success and prosperity on the next step of your incredible journey.
