So many of you with successful businesses or practices dream of the day you can cash out. Wouldn’t it be great to sell the enterprise you worked so hard to build for a ton of dough and then sit back and travel, play golf, serve on a few boards and support a few of your favorite charitable causes? Not so fast.
If you haven’t taken the time to prepare properly for a liquidity event, you could find yourself financially and emotionally disrupted to the point that you aren’t enjoying life and you aren’t preserving your hard-earned wealth.
Before you move on to your next venture or to a life away from the daily grind, here are five key principles that one of our clients advises hisclients to follow and they’re likely to work for you:
1. Ignore what made you successful.
2. Take a household view.
3. Understand different forms of risk.
4. Don’t gamble. Invest.
5. Control what you can control.
Read herefor more about these five principles. As we have discussed in recent posts, writing a relevant eBook, blog or regular column can position you as a thought leader in your niche and garner you national media attention. Last week, another of our clients Blake Christian, CPA, a tax partner of Long Beach, CA-based HCVT was featured in a US News & World Report story How to Create a Foolproof Withdrawal Plan for Retirement Assets.
We typically our outreach efforts at least three months prior to release date and several of our clients have landed new business just by sending out pre-release chapters to their centers of influence for review.
While it may not be in your DNA to take your foot off the gas pedal, capital preservation, not growth is your primary concern in the new chapter of your life. And the same goes for your next book, presentation or article. Begin with the end in mind or you may find yourself sharing all your accumulated smarts and expertise with the world without being ready for Act 2, or getting anything of value in return.
TAGS: Blake Christian, preparing for liquidity events, cashing out