What to do after you sell your business

Life becomes different after you come into a big pile of cash. Whether you’ve just sold your business, received an inheritance, or won the lottery. Suddenly being rich also brings problems. This post will describe some ways to approach life after you cash in.

Take some time to reflect and celebrate

If you’ve dedicated your life to growing your business, you’re probably the kind of person who has a hard time taking a break to celebrate. However, celebrating with your closest family & friends is a good way to reflect and think about what you plan to do next.

Avoid making big changes to your life right away

Take a breath. One of the good things about being wealthy is you have the freedom to choose your own adventure. If you’ve sold your business you’re going to be forced to change your routine. That’s often the toughest part for entrepreneurs. Regular routines and relationships with co-workers are interrupted. It can be disorienting, and some entrepreneurs are tempted to get right back into business to plug the hole in their social life.

Who are your peeps?

Take stock of the most important people in your life. Whether its your family, friends, and professional advisors. Consider who would be in your life no matter what your financial affairs might be. The people who will love you no matter what, are the people you should be keeping close with after you land big money.

Re-connect (with people and activities)

Life gets in the way. Its easy to lose touch when you’re busy running your business, raising your family, and living your life. It takes a lot of effort to nurture lifelong relationships. But, the people who love you are priceless.

When you come into a big pile of cash, it seems natural to turn your attention towards financial matters. In fact, you should double down on the people you love.

You should also double down on the activities you love to do. Fishing, golfing, playing hockey, yoga, running. Accepting the volunteer position on the fundraising committee of your favourite charity that you never had time for. Attending your niece’s school play. Cooking, baking, etc. Challenge yourself in new ways to broaden your horizons and take your mind away from money.

Fielding inquiries

Inevitably, word will get out that you’re rich. Then, people will start asking you for money. It could be your family, charities, and new business opportunities. Each has its own risks and you should say no to almost everyone right away.

“I’m working with my advisors to create a plan, so I’ll be able to give you a decision in 6 months”.

Find a gatekeeper you can trust. This person can let people down on your behalf.

Assemble a team who will help you build a Wealth Management Process. These advisors could include an accountant, an estate lawyer, and an investment advisor. The best professional advisor is someone who understands your personality and will give you straight answers in a way that you can digest.

Beware of anyone trying to sell you anything. Shooting the shit over lunch, coffee, or a beer is a good place to start. If someone isn’t willing to take the time to get to know you without getting paid, they probably won’t look out for your best interests anyway.

Move at a measured pace

You don’t need to rush or do everything all at once. Assemble your team and have them work on a plan with you. This plan could start as a one-page point form document. Your initial plan could list your basic values, your basic goals, a description of who you are etc. Don’t worry about making detailed financial plans right away. You may want to consult with several professionals before filing in those details.

The plans you make will eventually become the foundation of your Wealth Management Process. Like a business plan, your Wealth Management Process will describe how you manage your finances including a description of who you are (and what you value), your financial (and personal?) goals, your investment strategy, and how you administer your finances.

Your plans will grow and evolve over time. But, the important part to remember is not to “wing it”. Don’t shoot from the hip, now that you’re wealthy, the stakes are too high.

What are your values?

Make a vision board, talk to your friends & family. Talk to a counsellor, talk to a professional advisor(s). Use a family office. Find out what forms the foundation of what you think is “right” and “good”.

What are your new goals?

When I left Scotia and started working for myself, one of my clients told me not to seek pleasure all day, it wouldn’t make for a good life. Working and accomplishing things is good. A former colleague told me to keep active. Simply “enjoying” life everyday, drinking, eating, etc will lead to dead ends. Leading a purposeful life is important. When life changes, its important to find new routines and new goals to work towards.

Sometimes, deciding which goals to pursue is difficult. When its tough to decide what your goals are or which ones to pursue, seek the advice of your closest family, friends, and professional advisors.

Like retirement, what are you going to do next?

A lot of people plan for retirement. They save and invest with the plan to one day stop working their job and “enjoy” life. But, most people don’t plan on what to do while in-retirement. Oftentimes, working people retire and then struggle with mental health, depression, weight gain, and substance abuse & dependency.

In our working lives, we often know exactly what to do next: keep working. But when this purpose is taken away from us, many of us lose our anchor and float aimlessly. This can happen to entrepreneurs after selling their business, people who inherit wealth, and to people who win the lottery.

More than dollars & cents

There are many different financial strategies that you can apply as a wealthy investor. The journey you undertake to explore these opportunities will depend on your values, your unique personality and situation. Its impossible for anyone to suggest any approach without considering YOU first.

As time goes by, and you continue to refine your unique Wealth Management Process, you’ll discover what works for you, and where you need to make improvements. With the right advisors by your side, this process will be fun and rewarding.

Our family office helps wealthy people achieve greater peace of mind by being their most trusted advisor. We bring together our experience and expertise to help our clients become successful wealthy investors.