THREE THINGS TO CONSIDER AFTER EXITING YOUR TECH BUSINESS
BY DANIEL SAWYERR
From the moment you took the leap to get your idea off the ground, to building a successful tech business and then selling it – there’s no doubt it was hard work all the way.
You may think now is the time to rest easy, but there is one more important job to do: think carefully about what happens next. This is particularly the case for technology entrepreneurs who have received a substantial sum of money when selling their businesses.
With that in mind, here are three key considerations to keep in mind.
THIS IS A NEW ERA AND EXPERTISE MATTERS
What many people don’t realise is the complexities of managing wealth increase significantly after selling a business: issues such as tax planning and wealth structuring become paramount. This is why it makes sense to plan for life after selling your business with the help of an adviser who knows what you are experiencing.
In many cases, you will find yourself needing answers to big questions, such as:
- What is the best way to structure your newfound wealth?
- How much do you need to support your quality of life?
- Are you prepared for any forthcoming tax changes for high income earners?
- Will you use some of your wealth to invest in new ventures?
- Do you want to make charitable donations?
This can seem like a daunting process, but an adviser who has a strong understanding of the technology sector, as well as the often protracted process of selling a business, can help you structure your wealth in a way that protects your assets and enhances your lifestyle.
EXITING A BUSINESS DOESN’T MEAN GOING IT ALONE
For some entrepreneurs, selling a business can bring on mixed emotions. Once the deal is complete, a new chapter begins and this can be unfamiliar territory compared to what you have been used to.
It does not mean you have to navigate this new period of life on your own. This is where professional advisers – wealth, tax and legal – can help you navigate what can at first seem like a complex and daunting process.
The right cultural fit is essential. If you enjoy the feeling of working in a small or medium-sized business that is nimble on its feet and adopts the latest technology, you may be seeking the same qualities in your wealth manager.
It can be invaluable to partner with an owner-managed wealth manager that appreciates an entrepreneurial business environment, alongside the importance of a highly personalised approach.
WHO SAID ANYTHING ABOUT RETIREMENT?
The stereotype of a business owner in the past was someone who ran the family company until it was time to retire, at which point they handed the reins to the next generation or perhaps they sold parts of the business. In the tech industry, this couldn’t be farther from the reality. Companies are often sold within a few years of being founded and entrepreneurs may start multiple businesses during their careers.
Having sold your business, suddenly you have the ultimate luxury: time. Time to step back and think about what really matters to you – whether it is retirement, starting a new business, or becoming an angel investor.
At London & Capital, we want to help you make the most of your life after exiting your business. We pride ourselves on being flexible and dynamic, and moving at the same speed as our clients. This means getting to know what is most important to you and what you want to achieve in the future, and providing a truly bespoke solution to help you meet your goals.
To speak to Daniel, please give us a call on +44 (0) 207 396 3388 or alternatively email email@example.com