Setting Up Your Business

If you thought that setting up a business was the equivalent of having a break-through idea (read: something different than your average coffee machine), and then cashing in on that idea to go on to make a fortune. Then you, my friend, have watched one too many movies.

Yes, having a good idea is a necessity for having a successful plan. However, contrary to popular belief, this idea doesn’t have to be something unique. It could just as well be something straightforward that aids in helping the average citizen in making their day a bit easier.

Alright, we’re over the fact that a business can be set-up with good ideas. Now comes the hard part – having to turn that idea into a profit. Entrepreneurs spend years and years on end to make their business go through in the market as a successful one.

The fact of the matter is that the market preference isn’t a constant variable; it’s a constantly fluctuating state, and business has to always be on their toes to make them work. Hence, the life of an entrepreneur isn’t the lavish and easy-going life that one might assume it to be.

I Sold My Business, Now What?

Having have established the fact that setting up a business and making it flourish is a hard task, imagine having to part ways with that business. This isn’t meant in the sense that your business is failing and you need to get rid of it. It means selling your business on a profit.

If you’re an entrepreneur who’s just started on this track, then you probably would be mindful of ever selling your business. Why? Well, not only did you work hard to make it flourish, but it’s also making a considerable profit.

As mentioned above, a fluctuating variable that you can’t control is the market preference. However, this same variable is also what your entire business model, profits, and loss depend upon.

If your business is making good money today, congratulations. Would you instead liquidate those assets the minute you realize you’re at a high and cash-in on all the capital that you’ve invested throughout the years? Or, would you fight the market out for a couple more years?

Experts would tell you to do the former.

What Happens To Cash When Selling A Business?

Let’s assume that you’ve sold your company – now what? Again, your company is a flourishing one, and you’ve worked tirelessly to make it stand tall in the market.

Now, you’ve sold it at a considerable profit, and you’ve been handed what could be the single most significant influx of money you’ve ever received. This could put many people, not just entrepreneurs in quite the dilemma.

Having a considerable lump sum of money means that you have to think about your plans with it actively. This isn’t just an ordinary saving account’s type of a thing. This could put all of your kids through college and help you and your wife retire.

However, monetary gain isn’t always assumed in the form of cash and money orders. It might very well be something along the lines of stocks. All in all, it’s anything that would make you a whole lot richer.

What Do You Do With All That Money?


Protect Your Assets, Don’t Spend It All In One Go

Okay, so any reasonable person would know that it’s impractical to spend all of your money on one single purchase (unless a house or something similar). Even then, you’d still be left with a considerable amount to spare.

So the question poses: I sold my business, what do I invest in?

First of all, protect your proceeds. Essentially, this means that you have to secure the amount in ways that would benefit you from keeping hold of it and consequently away from someone else.

– Diversification

Placing your amount in the bank is the generic first thing that would probably come to many peoples minds. However, it isn’t merely putting money in the bank. Instead, it is a diversification plan.

Place your money in mutual funds, money market accounts, municipal bonds, and even real estate. Place it in sure ways of cashing in if and when necessary.

– Identify liability

Coming into a significant amount of assets can increase your chances of committing. This liability will manifest its form in many ways, not just someone sneaking into your house.

For example; make sure that you have enough umbrella insurance coverage. Thus, if you’re exposed to financial risks, you would be able to make a timely recovery.

Likewise, form LLC In-corporations in general partnerships to ensure that the entity is liable, not you personally.

– Hedge your stocks

In case you’ve received shares, hedge them against a downside on the ones that you’ve received. Plan an adequate hedge strategy with the help of a knowledgeable financial planner or a stockbroker.

Planning For The Future


– Wills And Beneficiaries

You’ve probably heard of wills and living wills. They entitle specific people to make particular decisions about your person and property should it ever come to it. In case of a will, it usually goes over the distribution of assets after death. Whereas a living will signify a power of attorney in case you are incompetent to make decisions.

The person you’ve entrusted with so much so as your life will undoubtedly be someone you trust. However, while that is a person you’ve known for so many years, a more practical thing to do still would be to listen to your lawyer or financial planner.

– Saving Up For Their Future

The ‘they’ in this sense refers to your children. In cases of monetary gain, your children become a primary focus. Matters such as guardian ships, trusts, and college funds have to be addressed timely and promptly.

There are a variety of trusts available – from designated time frame allowances to time frame all in one cash-ins. Beliefs should be formed, keeping in mind various factors such as financial probabilities and dependence.

Similarly, another thing you have to consider is your child’s college education. Unknown to many, there are savings plans similar to 401(k) for your child’s education – the 529 plan. However, since its state-sponsored, it will allow you to build upon tax-free savings for tuition.

– Consider Gifting

A way to avoid taxes is to consider a process known as gifting. It is precisely like what you would find it to be. With the apparent exception of it being a tactic of shrinking a large estate to help your beneficiaries avoid significant estate taxes.

This has to be set up on your own and not through your company.

The Monolith Investments

The Monolith Investments is a self-storage structure, advancement, and venture organization. With a strong establishment in the real estate business, we offer an unmatched degree of significant profit and administration in creating and building top of the line, high security, atmosphere controlled for self-storage of assets.

Be that as it may, we’re more than just developers – we are a coordinated land and development organization. Mostly, a front line land venture firm disentangling the way toward putting resources into self-storage to offer increasingly verify and more extended returns.

Consumers utilize self-storage for various reasons, including family cuts back, redesigns and migrations to give some examples. A portion of these thought processes become increasingly common during monetary downturns, loaning a counter-patterned component to the division.

The inhabitant rate for a self-storage office is roughly 40-45%, instead of the 60% or more prominent inhabitant rate for lofts. Self-Storage frequently brags the most elevated all out yearly returns more than 5-, 10-and 15-year midpoints.

You shouldn’t be a part of the 1% to put resources into self-storage. About 80% of self-storage properties stay in the hands of little, autonomous speculators. The base necessity to contribute to The Monolith Investments is $25,000.