So you’ve been managing your business or organization for more than 30 years and through those years you’ve put up with so much. Slow days, long nights, difficult customers, financial problems and maybe the threat of foreclosure too but you’ve made it through the tough times and now you’ve come to the final chapter of your career: retirement. At this point, you’ve given so much time and effort into your business to get it to be where it is today but you may decide that it is time to sell it, but where do you go from there? There are a number of possibilities that exist when it comes to deciding what you may want to do next that may or may not include playing golf in the day. Before you think about that though there’s still the issue of actually selling your business which is another headache on its own because it is not as swift and worry-free as you might have hoped it to be. Here are some examples of what comes after or before you’ve sold your business.
Organizing your money
Since this can be a long and tedious process for many owners, it’s always best that you get your finances in order before and after you’ve sold your business. The money that comes from your business may be divided between a variety of different accounts such as trust funds, wills and personal accounts which you may choose to put into investments like real estate, mutual funds or municipal bonds. The paper work that follows, however, is an endless sea of documents drowning you in signatures of approvals and other inquiries about your business that would keep you busy for days. Hiring a bookkeeper to manage all of this could save you a lot of time and stress especially around tax season. This would also be the perfect opportunity for you to review the liability of your business by analyzing your personal financial risk which can be reduced if your business is covered by umbrella insurance or if it exists as a partnership in the form of an LLC which ensures that you’re not personally liable for anything.
Tax liability is another important subject that should come to mind before you sell your business. If you’re interested in finding ways to lower your taxes some of the ways you can go about doing this is by maxing out your IRA, prepaying your state or local taxes or making more tax-free investments. These are key things to think about if you want to sell your business with a comfortable amount of money saved when all is said and done. For more information on this, you can click on this link here.
Plan for your family’s future
It should come without saying that it is important that keep your family in the loop when it comes to any big decisions that you’re planning to make. There are many business owners who have gone through the selling process who can tell you how important it is to let your loved ones know what’s going on in your business so that there would be no confusion or mix-ups that happen once you’ve sold it. After you’ve sold your business you can make the decision to create, for example, a college savings plan as an investment in your family’s educational future.
Review your balance sheet
One thing you’ll notice is the change that takes place on your business’s balance sheet prior to actually selling your business. Now that you’ve sold your business you’ll come to find that accessing the money you’ll need for your daily needs will be more tricky to get a hold off for tax purposes. In short, you will depend on your balance sheets more as it will give you a very precise outline of your finances and help you identify issues and manage your funds wisely.
Audit your current estate
If you haven’t done this already there will be a need to make revisions to your will and insurance coverage policy that will reflect the changes made after you’ve sold your business. There can be issues that will require immediate attention and they may include concerns dealing with what to do with company shares or whether you have the right person to handle the business end of your new affairs. Making changes will require your immediate attention so that you don’t get distracted when you have to deal with other issues that don’t need your immediate response to.
Making sure that you address these concerns will help make the transition of selling your business more smooth and keep not only your financial assets protected but ensure that your family will benefit from this move as well.