Time is our most precious and irreplaceable asset, yet we often spend our days with very little thought of it beyond its immediacy—a meeting to attend, a task to finish, a place to go—today, tomorrow, this week, next week. Before we know it, a month has passed, a season has changed, a year is over, and a decade is just a memory.
As a business owner, you spend years focusing your time, energy, and capital on building and growing your company, creating financial security for your family. It is a noble endeavor, but at some point, you will decide it’s time to exit your business.
The top reason business owners exit their business is to have more time to do what is most meaningful to them.
Recently, we advised clients in the sale of their business in the pet sector. When the sale closed, the owner told us, “My wife and I have worked together for 50 years and survived the great times and some not-so-great times. Now we have sold our business, thanks to Legacy Partners, and we are happily enjoying the time we have together.”
Many owners thrive after leaving their business. Others find it hard to transition to a life free of long days, challenges, and problem-solving. According to the Exit Planning Institute’s State of Owner Readiness survey, within one year, 75% of business owners regret selling their business. Several factors may contribute to their dissatisfaction: a loss of identity when they are no longer an owner of a business, a diminished sense of purpose, a fragmented social structure, and a lack of direction.
So, why do some owners transition more easily than others?
Primarily, it’s because these owners are moving toward a defined future, whether it’s traveling the world, spending time with grandchildren, giving back to the community, or simply golfing or fishing.
How often have you dreamt about a retirement bursting with nebulous ideas of how you would fill the hours? On challenging days, probably a lot. But when it becomes a reality and you have all the time in the world, what will you really do with your time?
At Legacy Partners, our exit planning process includes a Post-Ownership Plan that addresses how owners choose how to spend their time after they exit their business. Taking time to plan your future before your actual exit can help you transition seamlessly to your new life with a clear vision of what you want to do with your new-found free time.
Developing your post-ownership strategy requires some honest reflection and a little patience.
Here is a snapshot of our five-step process:
1. Understand your core values.
You’re a different person today from who you were 10, 20, 30 years ago. You’ve been seasoned by the challenges you faced and the things you’ve achieved so far. This step helps you understand who you are today and what’s most important to you now.
2. Explore your dreams.
Take some time to think about your dreams and envision your future. What do you want to do? Who do you want to be? Where do you want to go? What do you want to have? This step helps you revive past dreams and discover new ones that may enrich different aspects of your life.
3. Design your post-ownership life.
This step helps you prioritize your dreams, big and small, based on three drivers: Intellectual (what will stimulate your mind and keep you engaged mentally), Physical (how you will support your physical and emotional health), and Social (how you will reinvigorate existing relationships and make and sustain new ones).
4. Create powerful goals.
In business, setting goals and striving to achieve them is an effective tool for building successful companies. Goal setting is a valuable tool in our private lives, as well. This step helps you create clear, compelling personal goals that inspire you to bring your dreams to life.
5. Organize for success.
Achieving your goals, living your dreams, is the fun part! This step is the final piece of the process and helps you plan how you will pursue your dreams. Leverage the determination and commitment you’ve exercised with your business. Make your goals and dreams a normal part of your daily routine in your personal, post-exit life.
After spending decades devoted to making your business a success, transitioning to a new phase of your life can be unsettling, but with proper planning, you can transition with ease.
