Have you ever noticed how many former professional athletes become sports analysts, announcers, reporters and coaches? A large number of them, whether it is on the national level, high school level, or personal level find themselves staying busy doing something close to what they loved to do as a career before they “retired.” Owning and operating a business is the same concept. When you do one thing – owning a business – for such a long time it becomes part of who you are. But there comes a time in nearly every career person’s life when they have to ‘retire’ and move on, which may include selling an insurance agency.
The business side of this is relatively easy to accomplish with the right guidance and advice. Like most of the professional athletes, business owners can’t stay away from what they are used to for long after they ‘retire.’ But on an emotional side, owning a business is a lot of hard work and takes a toll on the mind, body and relationships, so you won’t want to get into yet another business ownership venture. So how do you deal with the emotional side of selling your business and moving onto life after the sale?
Prepare a Transition Plan
Frankly, the transition plan after you sell your agency is very simple. Sukay and Associates was formed in 2003. In the last 12 years, every agency owner has done the same thing the day after the sale. They went to work at the agency. A lifetime transition event will happen one day, but buyers want you to continue for years. We advised our first client in early 2004. All three owners are still working. We sold an agency in 2006. One of the owners was 76. He is still working and had his best production year ever in 2015.
I am a strong believer in retirement at the right time. I believe that the vast majority of all successful business owners will have a successful retirement. The skills that made you successful in your business will allow you to be successful in your retirement. Many business owners believe that they are defined by their business. Unfortunately, shortly after your retirement, nobody will care what you used to be.
Involve your Family
We have been talking to several business owners that should have sold their agency 10 years ago. All of us know a few individuals that should be enjoying themselves more but still come in the office for a few hours every day. We joke that some of them are only doing this to avoid spending time with one of their family members.
The sale of a business is a very emotional decision. It is a long process and there will be the inevitable challenges. There will be the anticipation of working with new professionals. What is it like to have a boss after so many years of being independent? These are very normal issues. We have found that it is very helpful to let your family know that you are dealing with these emotional issues. Luckily, our experience is that most agency owners relish the new challenges.
