Hey guys, I have recently sold my business for multiple 6-figures (between 100k and 500k) and now I’m feeling lost and almost a bit depressed.
I always thought that exiting a business would bring me joy but it was almost the opposite.
I find myself in a strange situation where I have enough money not to have to work for a bit, but not enough to retire, and at the same time since I don’t have any new money coming in, I found myself becoming extremely frugal.
I tried starting new projects but I often find myself getting discouraged because the project doesn’t start working right away. Additionally, since I’m venturing into something new that I’ve never done before, doubts start creeping into my mind.
Alongside these doubts, there is also the fear of investing a significant amount of money into this project, and after seeing it fail finding myself in the same financial situation I was in before the exit.
Can any of you relate to this situation? Do you have any suggestions?
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Count your blessings, I sold mine (51%) for $12M cash and netted negative $800K due to litigation and lawyer fees.
😢
I’m a bit confused on this- do you mind elaborating how something like that is possible? So you should have theoretically received around $6M and ended up losing $800K?
Yeah, I’m frequently discouraged and unmotivated, despite being financially secure I hate having no income and nothing to work on so I often take on projects outsides of my expertise just to feel like I’m doing something.
Getting to your goal > achieving your goal. What you’re going thru is pretty common., so you are not alone.
How long ago have you sold the company? And when does the non-compete ends? In what market? Maybe you can re-entree the market from another angle, so that you can build on your previous network and momentum.
Put 60% into savings and/or a safe investment heaven. And use 20% as starting money for your new venture. Identify honestly what made the first comp. successful, and what not.
Why did your previous projects fail? Too afraid to invest?
That’s a really good point, I could invest 10k in the new project and see how it goes.
I think that my past projects failed because I was doing something totally different from the skills that I built with the previous project, and I wasn’t giving them the necessary time to develop into profitable ventures.
Also fear of investing capital and wasting money.
Getting to your goal > achieving your goal. What you’re going thru is pretty common., so you are not alone.
This hits hard every time I beat the Mass Effect Trilogy… So I guess my advice to OP to fill the current void is to play the Mass Effect Trilogy. And then when they’re done with that, start a new business to fill the void in their soul beating Mass Effect leaves. Sell that business. Rinse-repeat.
Was thinking similar. After non compete he can still build similar product. WhatsApp founder built Signal and there are many others I would think
I could sell my business now but I need the income.
Why did you sell if you didn’t have a plan for what comes next?
I went through similar feelings 2 yrs ago after making the decision to shut down/dissolve my company.
The feeling was like the end of an amazing relationship or losing someone who I loved.
The first 6 months were the worst. I had done a lot of walking and thinking(most was at the beach). Then it hit me. I was in an amazing position to do whatever I wanted, wherever, however.
About a year later, I was out with my wife and we were asked what we did for work. I caught my wife off-guard when I answered “I’m retired!”
I’ve dabbled with a few things, made a few bucks here and there and took up a couple of hobbies. I actually love this life style!
Without knowing your age, it’s tough to give too much advice (I hung it up 2 months before I turned 59.)
Invest the majority of the money. Use a small amount to get away…explore, travel and relax. You’ve earned it. Use a small amount to start something that won’t kill you if it bombs.
Enjoy!
Stick 90% of it in a tfsa with some gics and get 5% at least on that money a year! 400k at 5% is 20k a year
I feel you.
After I sold my business. I was lost for 3 months. I basically could lean retire but I felt empty.
I decided to go get a job.
now I torture my manager the same ways my staff used to torture me. it brightens my day.
work for someone until your non compete ends then do the exact same business again.
This is hilarious. I’ve dreamed of doing this every time an employee comes to me with their problems
I was in a very similar situation to you. Sold my business, moved to a new area… and felt flat. Well, very flat and depressed for about a year afterwards. It’s strange to feel like you’re winning with a successful business, to then sell, and realise all that hard work you put in is now condensed into an amount of money. You question your life, existence, the lot.
I now fill my days by doing a mix of whatever the hell I like… long walks, nice cooking, doing up my house, volunteering, and work wise, I offer up my services to people I used to work with… so that takes up maybe 3 days a week.
My situation sounds identical to yours, except I just sold the biz and won’t be moving for 6 months.
Did you start feeling better after the year?
I was in a 3 year earn-out, followed by another sale and another 3 year earn-out. After all the hard work I put in, I felt so empty… it’s like a grief or something, hard to explain.
I think I reached a weird state of burn-out, but functional burn-out… I craved the high pressure. 🤷🏻♂️
It’s been a year in Feb 2024, but I took some time out (not as much time as I thought I would), but made an effort to visit friends all over the country who I’d not seen for a long time. Slowly but surely I started to get a new vigour for other stuff, putting plans and ideas into focus, and realising that my work only matters to me and others in the industry, it matters not a shit to anyone else. Sounds sad, but you’ve actually got to teach yourself how to live again.
Edited: spelling
My only suggestion is teach what you did to people in a similar situation. Charge a premium for these consultancy sessions.
Take a month off and don’t think about it. Come back and look for something to sink your teeth into again. Just stay curious and you’ll find it.
I’m in a similar boat financially. Being in this middle zone of so much, but not enough to stop, is a strange place. All you can do is keep going and decide if your next goal is to make enough to stop working, or to reach some new height.
The entrepreneur in you is still alive!! When ever you doubt yourself looks back once and think about what made you start your first venture. When even your past failure taunt you, do not dwell in it. Instead try to pick up learning’s from it and march ahead.
How much was the business clearing p.a.?
Mentorship?
I understand you’re depressed about this but there are many entrepreneurs that would love to be where You’re at. Take advantage of it and in the process. Find a niche you like based off the founders you mentor. Maybe work for advisor shares or stock options if you think you would want to go along with their endeavors. This way you don’t have to worry about dealing with starting from scratch but in something that perhaps midway or is profitable but at a stuck point.
Could challenge yourself that way and get paid for pursuing those challenges.
Are there any ways you could’ve improved the business? Make another one
I can recommend three solutions.
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First, accept that your new venture failing is a real possibility just like your old one was. The only difference being that back then you had less to lose.
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Second, create a MVP and instead of using your own money, get someone else to invest. This should ease your anxiety a bit.
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Third, find a job in the domain other than the one you have a non-compete in. Find what kind of skills you can transfer across different industries.
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