There is always going to be a close bond between an entrepreneur and their first start-up. Knowing that you have started and built something from the ground up is truly satisfying and a sign of your commitment. But there will always be a thought in the back of your mind around what comes next or what is the next big step? Options like starting up a new venture or expanding the business may sound like fresh ideas, but a second venture will take away time from your main business and a company expansion could take you into areas outside your comfort and skill zones.
A way many entrepreneurs deal with this urge to do something new, is to exit and then re-insert the money, time and energy into something new. However, it’s important to take into account the personal feelings an entrepreneur may have towards selling & exiting their company and how difficult the transition will be to go from a busy 50+ hours a week business owner to a different or more relaxed lifestyle. So more entrepreneurs are finding it hard to say goodbye to their business/es, with most business owners wanting to remain on the staff board after the sale has been completed.
Research published by Business Advice has revealed that up to 75% of business entrepreneurs want to stay on at the company and work in tandem with the new owners after selling up, with a further 44% wanting to stay for up to three years after the company sale has been finalised. Starting up, running & growing a company is like raising a child in the eyes of business owners, so there are going to be some tough emotional hurdles to conquer before moving forward with their next venture. The research discovered that more than 50% of business operators were troubled by the thoughts of a new buyer mistreating their former business, with a further 16% concerned around the welfare and futures of the staff.
“Running and eventually selling a business come with a mix of both practical and emotional considerations that touch entrepreneurs each day.” Jeremy Furniss, Livingstone Partners
With the sale complete, you may get asked the question “now what?” on a frequent basis. With the money made from the company sale, you can now relax and enjoy a sense of accomplishment after your successful entrepreneurial time. However, if the idea of playing golf everyday is an unattractive future prospect, you may wish to get back on track and invest the money into a brand new self-funded business idea or partnering with others in their idea. Not only will you go back to doing what you do best, this will be a great opportunity for a fresh new business plan and operation of another potentially successful venture.
If you’re looking for professional guidance and support during your company’s sale, the EFM team are here to help. Get in touch with the experts today by email or call 01582 516300.