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This is Part 3 of the series: The 3 Parts of an Exit Plan.
The three parts of an exit plan are: your business goals, your financial goals, and your personal goals. As we discuss the importance of having a personal plan for your life, you’re going to learn some helpful tips and ways to avoid feeling a sense of regret when you’re exiting your business.
Timestamps:
00:00 Introduction
01:09 Question of the day
01:43 3 Causes of Regret
02:10 Overcome Boredom
02:48 Find Your Purpose
03:39 Cultivate Relationships
04:25 Recap
05:13 Closing
Will Your Exit Feel Like a Vacation?
Have you ever been really excited to take a vacation? You spend hours researching the best things to do, places to eat, and where to stay. Then, when the day finally comes, you arrive and feel a little disappointed. Well… the same thing happens to too many business owners when they exit their business. They plan for a smooth transition only to be left wondering, “Did I make the right decision?”
In previous discussions, we talked about the importance of having a business plan and financial goals in place as part of your exit strategy. Today, we’re going to dive into your personal plan for life after business so, hopefully, you don’t regret your exit.
What Will You Do After You Exit?
Let me ask you: What do you plan to do once you exit your business? Take a moment to reflect on that. Once you’ve written down your thoughts, ask yourself a follow-up question: Do you know how you’re going to achieve those things?
What we want to avoid is waking up the day after your exit with a sense of regret. According to a PriceWaterhouseCooper survey, nearly 75% of owners profoundly regret selling their business. After speaking with many business owners, I’ve found that this regret usually stems from one of three issues:
- Boredom
- Lack of Purpose
- Social Isolation
Let’s explore each of these areas and how to address them.
1. Dealing with Boredom
To combat boredom, start engaging in hobbies that you may have neglected over the years. Consider learning a musical instrument, exploring art, or taking up a new sport like rowing. But don’t wait until you’ve exited your business. The time to start exploring these things is now. By starting now, you’ll keep life interesting and broaden your horizons. You might find out you don’t like golf or tennis as much as you thought you did; however, you might find that you enjoy cooking or woodworking. In either case, this exploration will give you a sense of what you can look forward to after retirement.
2. Finding a New Sense of Purpose
As a business owner, your purpose has likely been tied to serving your clients and customers. You’ve always sought after new ways to serve them and make their lives better. You’ve also been responsible for your employees, helping them support their families. With all of your purpose tied to your customers and employees, once the business is gone, what will drive you?
To maintain a sense of purpose, consider:
- Volunteering for causes you’re passionate about. Look for ways to increase your involvement, especially as your exit gets closer. That way you can jump right in when you retire.
- Exploring consulting or other business ventures where you can still add value, without being the person in charge. As someone that’s run a successful business, the value you can add to young, growing businesses is invaluable.
It’s activities like these that can provide the fulfillment you need once your business is no longer at the center of your life.
3. Maintaining Social Connections
As a business owner, you’re constantly surrounded by employees, vendors, and business partners. It’s easy to develop relationships in this environment, but once you leave, those people will continue with their lives and work. You’ll need to cultivate relationships outside of your business so that you still have a network of people to socialize with after you exit.
Think about it… if all of the people you spend the most time with are tied to your business in some way, when you don’t have your business, who will you see the most? In many cases, this will be your spouse, especially if he or she doesn’t work now. Have you ever spent extended periods of time together–without breaks? If not, don’t be surprised if it takes some time to get reacquainted.
Recap: The 3 Key Areas of Regret
To avoid regret after exiting your business, you need to address these three areas:
- Boredom – Start exploring new hobbies now to keep life interesting post-exit.
- Lack of Purpose – Find ways to give back, either through volunteering or by continuing to engage in business on your own terms.
- Social Isolation – Build relationships outside of your business to ensure you have a network once you’re no longer interacting with employees and partners daily.
Having a personal plan in place for your life after business is instrumental in ensuring you feel at peace with your decision. By addressing these three areas, you can transition smoothly and confidently into the next phase of your life without regret.