Are You Emotionally Unprepared for this Big Move?
It should come as no surprise that in this current pandemic climate, many business owners are coming to me about selling their business. And while there is plenty to do within the company to prepare for a sale to avoid mistakes and achieve the best outcome, the biggest mistake you can make when selling your business has little to do with your company. In reality, it has to do with you. If you don’t prepare yourself emotionally to sell your business, the consequences could persist well into retirement.
Selling your business without being emotionally prepared is like running a marathon without training. It’s certainly possible to reach the finish line, but the ride will be rocky and the outcome unfulfilling.
The following are four potential issues you face if you don’t become emotionally prepared before selling your company.
4 Consequences of Emotional Unpreparedness
- Wastes time and money – A seller normally won’t admit that they don’t feel ready to sell. Instead, they’ll drag buyers through a lengthy and costly negotiation process, filled with thumb twiddling and naysaying.
The process becomes even more frustrating if you have a partner. You can sit at the negotiating table for hours on end, only to later realize that you’re not on the same page about closing the sale.
- Turns off future buyers – In the worst cases, I’ve seen sellers go as far as actually signing a sales agreement, and later deciding to back out.
Even if you’re able worm your way out of a binding contract, your reputation will never be the same. Buyers talk, and if you find yourself on some sort of blacklist, selling will be even more difficult in the future.
- Your business may decline – There are no certainties in business. While you hem and haw over selling, the economy could crash, a competitor might emerge, or – we hate to say it – unexpected health complications could arise.
The point is, unless you’re actively growing your business or looking to acquire another, you should sell. The longer you let emotional barriers get in the way, well… you just never know what could happen.
- Takes the joy out of retirement – The struggles don’t end as soon as you close the deal. Studies have shown that 75 percent of owners are unhappy in their first six to nine months after retirement.
That’s because selling before becoming emotionally prepared can leave an owner feeling empty in retirement. If you don’t have a plan for a fulfilling retirement, your golden years will probably feel anything but.
Don’t make the mistake of selling before your emotionally prepared. Failing to confront your feelings will only make it that much harder to sell and prevent you from enjoying your much deserved retirement.