So if you have been following the three steps then I am sure you are baffled that there is one more.  In the last Step 2 of 3 we ended at the Close of Escrow (COE) and  now your wondering what could possibly be Step 3.   We did it!!  We sold the business and closed escrow, congrats, but hold on tight there is still more to do.  The great thing here is you are not alone and most business owners who actually sell their business are so excited/tired/scared/sad and full of emotion they just walk around for a while and wonder what’s next?  Well that’s exactly what Step 3 is, what do I do now?

First, let’s make sure that I am only referring to business issues here, and am not a shrink nor counselor.  You will have to deal with your personal emotional life on your own.  I am here as a fellow SBO who has been there before and am only qualified to help explain and advise you on the business side.  My only advice is to be ready for a bumpy ride.  Just be aware… that you have made a very big personal decision that affects you, your wife, and your family and not everyone will be happy with you.  Excluding your own personal feelings, your employees might feel deserted and left behind, resentful that they helped you and then you left,  your family might not want you around in “their space” now that you don’t go to work and your loyal customers and vendors might be jealous or angry.  Throw all of this on top of your personal struggle and exhaustion with a topping of buyer’s remorse, and the fantasy has yet to be realized.  I’m not saying you won’t get there, it just takes time and more work.

Putting the emotional side away for a moment, there are still some business requirements that need to be attended.  First, most businesses are sold as an asset and not a stock purchase, so you still have a Company that you own after COE.  It might be a shell, since you sold all the assets, but according to the government it is still a working Company.  So you need to look into what is required to dissolve the Company.  If you had employees and a 401k then you need to close those out.  You might also need your last worker’s comp and general liability audits to get the deposits back.  Also, don’t forget about all the credit applications with your vendors over the years that have personal guarantees on them.  If you don’t manage to close them up your credit can get hurt very quickly and for me it was from an old account I didn’t remember we had.  You also have your Company bank accounts, final bills, and rent deposits to settle up.  You might have business licenses, IT or patents that need to change.  You have personal expenses that you have run through the Company (I know not you or me but this is for everyone else) and vehicle registrations that need changing.

What I’m trying to say is that closing down a business can take a few months so plan on it.  Work with your CPA and attorney for help and set up a check list as you think of things.  Please do not think that COE means you are done, it only means you are transitioning into something else.  Entreprenuers are never done, we might sit on the sidelines for a little bit, but we are never done.   We see new ideas every day, in everything, and that’s ok.  Enjoy this time of the business cycle and learn from it.  Take time to reflect, evaluate, and re-energize and then see what you can now do with your time.   Good luck and pay it forward!!

This entry was posted on Friday, May 15th, 2009 at 4:31 pm and is filed under Sell Your Business, Professional Advice. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.