Based on insights from the ‘Exit Like a Boss Podcast – 21-Step Challenge‘, this blog covers Step 20 – Asset Protection.
Congratulations, you’ve successfully exited your business, securing that substantial payout you worked so hard for. Now comes a crucial phase – protecting your newfound assets. No longer can you rely on the constant inflow and outflow of business finances; it’s time to ensure your wealth remains intact and secure.
For many entrepreneurs, particularly those of the baby boomer generation, the sale of a business heralds a shift in priorities. Now in your 50s, 60s, or 70s, you’ve sold your business and received a significant payout. However, the new challenge lies in safeguarding this asset. Unlike before, you can’t simply inject more funds or sell another business to recover losses.
The Intricacies of Blended Families
To add to this complexity, many entrepreneurs have blended families, with children from previous marriages or those who’ve been married and divorced themselves. Navigating this intricate dynamic necessitates a prudent approach to asset protection.
Seeking professional guidance is paramount in this stage. The core of your strategy should focus on understanding what assets you possess and how they are owned or controlled. Utilising tools like family trusts, can offer a robust level of protection. These trusts allow the family to control assets without direct ownership, providing a layer of security.
Assessing Risks and Implementing Safeguards
Now that you’ve sold your business, your risk profile has changed. Assessing potential risks, such as accidents or lawsuits related to retained assets like a factory or office, becomes essential. Setting up the right legal agreements, insurances, and estate planning measures can go a long way in safeguarding your assets.
Understanding the ownership structure of the assets you choose to retain post-sale is critical. Whether it’s a factory, office, or investments, determining the appropriate ownership ensures protection and peace of mind. Consider the lease agreements and who should be the legal owner.
Above all, detailed legal and financial advice should be sought before making decisions on asset protection. Crafting a strategy that aligns with your unique circumstances and family dynamics is key. This ensures that your exit remains a triumph, and your financial gains are secure for the future.
In the end, having exited like a boss, let us not falter in securing what we’ve gained. With prudent planning and professional guidance, we can fortify our assets and pave the way for a prosperous and secure post-business life.
This article was originally published on capitaliz.com.
