Savvy Business Owners Plan for Success…ion–Set Financial Goals 3
Imagine funding one of your long term financial goals from the proceeds of the sale of your business. Do you know the sale price needed to adequately fund the lifestyle you want to live? Do you know which operational steps (Increase revenue, Decrease direct and indirect costs, Increase Net Profits) are needed to move towards receiving the asking price? Do you know how much is needed each month to fund your quality of life?
As with important things worth accomplishing, establishing SMART personal financial goals and performing SMARTER actions will help put a business sale in proper perspective and increase the likelihood of a achieving a successful outcome. Setting these SMART personal goals early on will help set operational objectives as we work towards selling or transitioning our business.
When it comes to funding personal financial goals the money received from the sale of a business can play a big factor in successfully reaching financial goals. However, prior to selling the owner needs to not only understand how much is needed to fund goals but which funding and exit strategy is best. (sell business in part and remain involved with its operation, sell business in full and remain involved with its operation and be paid salary, or sell business in full and end involvement with its operation.)