You’ve done what so many people aspire to do–managed to sell an online business and received a fair purchase price from the buyer. During the sale process, it’s hard to focus on the future and think about what comes next with all of the attention and work required to see that the deal goes off without a hitch. Now that you’ve reached the final phases or completed the entire sale, it’s important that you set up a strategy to ensure your financial success now and in the future. Based on the advice of some of the best online business brokers and advisors, here are six things that you should start to do now to ensure a rosy financial outlook for tomorrow.
1. Give yourself time to stay in the picture. Even after you complete the sale of your online business, you’re likely to still be involved with the company for some period of time. Be sure to plan for the time that you’ll need to work for your previous business and assist the buyer during the transition period. You may need to delay your next venture or take a break from employment during this period of time, so be sure that you have access to cash to manage your living expenses until you can start on the next chapter of your entrepreneurship or career.
2. See the picture clearly. Many people make the mistake of continuing to view their financial picture through the eyes of a business owner even after the sale of your business. The truth is that your financial picture has shifted with the majority of your wealth now in cash rather than invested in your business. Just letting the money sit in your financial institution is not the best way to put it to work for you. Accept this fact and be willing to explore new avenues for the proceeds from the sale of your business.
3. Get professional help. After having to deal with lawyers and financial professionals during the sale of your business, it’s natural to want to take a break from the meetings, phone calls and emails after the sale is completed. Unfortunately, putting off finding a money manager to assist you during the months that follow the sale could end up costing you. Start looking for the right money manager now to get things rolling and invest in your money in a way that will maximize your return and help you get the best possible yields.
4. Manage the books. Now that you’ve sold your online business, you definitely understand how important it was to have organized financials for your Internet company. Having your personal financials organized is just as important. Invest in personal accounting software to get all of your accounts organized, or hire an accountant or bookkeeper to assist you during this period of transition. Doing so can help you avoid costly mistakes and make it much easier for you when it comes time to do your taxes in April.
5. Investigate your tax situation. Speaking of taxes–the sale of an online business will have a major impact on your next tax filing. If you don’t plan ahead and anticipate the effects of the sale of your business, you may be in for a nasty surprise when the deadline for tax filing rolls around. Speak with an accountant or tax attorney now to find out what your potential tax liability might be. There are many legal ways to reduce tax liability or defer it until retirement, and a professional can help you weigh the available options and reduce the amount you’ll owe the government.
6. Talk to your family. Talking about financial matters with family can be uncomfortable but doing so can help you avoid drama in the future. It’s up to you how much you reveal about the sale of your business and to whom you reveal it, but you should consider discussing your new financial situation with your spouse and your children at a minimum. Making it clear to extended family that while you did sell your business, you have plans for the majority of the cash can also help you avoid uncomfortable situations, such as requests for loans.
Just beginning to think about selling an online business or planning to buy an online business in the near future? Using an online business broker can help make the process smoother and ensure that you get the best price for your business or find the right investment for your unique needs. As professional Internet business brokers, we can help you navigate the process and plan for the future. Contact us today to schedule a consultation with one of our website brokers to learn more.