How to avoid depression after selling a business?

Selling your business is a chance to set new personal and work goals. This new phase is exciting, but can also bring unexpected emotions and challenges. Some exiteers wonder what to do with the money from the sale of a business, whilst others suffer from depression after selling a business. Recently this Reddit post on “feeling lost/depressed after selling my business (multiple 6-figure exit)” generated hundreds of comments from exited business owners who relate.

"Contrary to popular belief, selling your business doesn’t mean you can just relax and work less. In fact, without a solid plan for ongoing personal and professional growth, it’s easy to slip into unproductive habits. Staying engaged and maintaining discipline is key to making the most of your time after a sale. The less you work, the lazier you get” - says Georgi Todorov, who sold his online business for 6 figures, and is now the founder of Create & Grow.

With these stories in mind, I thought it was time to provide a guide on what to do after selling your business to help you manage this change smoothly. This way, your transition can be successful, rewarding, and satisfying.

How to overcome post-deal depression

Moving from being a business owner to having more free time and money and less purpose and thrill needs good planning and thought. Here are the 5 essential steps to take after a business exit:

1. Celebrate Your Achievement

2. Relax After Selling a Business!

3. Journal About Your Experience

4. Check Your Financial Goals

5. Discover New Projects and Interests

1. Celebrate Your Achievement

First, make sure to celebrate your success. Selling a business is a big step, so it’s important to mark this victory. Whether it’s a quiet dinner with family or a big party with your old team and business friends, celebrating can give you a sense of ending and happiness. It helps you appreciate the journey and gets you ready for the next part.

2. Relax and Recharge

After the celebration, allow yourself to rest. Selling a business is very busy and stressful. It’s important to take a break to regain your energy. Do things that make you feel good and boost your energy, like going on a holiday, staying at home, or simply spending time with family. This rest is key for your mind and body, and it helps you think about what you achieved and what you want to do next.

“I got great advice to take some time off post-exit. Don’t rush to invest the money. Sit on it, read, write, and brainstorm on what you really want to do next.” Nathan Hirsch, exited FreeeUp in 2019 and co-founder of Triseo.com.

3. Journal About Your Experience

While you’re resting, start writing about your thoughts and feelings about the sale and the future. Writing can be a good way to understand what just happened and the big changes in your life. It can also help clear your mind about your future plans and personal targets. This practice can give you new ideas about yourself and what you want, guiding your next steps more effectively.

4. Check Your Financial Goals

With your business sold and more money available, it's time to check your financial goals. Talk to exited business owners, conscious investors and financial advisors to make a plan that ensures your long-term financial security and fits with your lifestyle. This might mean investing in stocks, buying property, or funding startups. One of my best read blog posts is on How To Start Angel Investing. Financial planning after selling your business is crucial to make sure your financial health is maintained.

“It is a weird place to be, post-exit. Fixed amount of money in your bank account, no money coming in. You approach your own personal finances differently.” Nathan adds.

5. Discover New Projects and Interests

Finally, think about the thrilling chance to start something new. Whether it’s starting a new company, doing charity work, or spending time on a hobby you love, try things that you're passionate about. This phase is not just about keeping busy; it’s about doing something important that excites you and uses your experience as an entrepreneur. This creative exploration not only keeps your entrepreneurial spirit alive but could also lead to your next big masterpiece.

A Trip Around Europe and Taking Time

Sophia’s story is a great example of this journey. After selling her e-commerce platform, she celebrated with a trip around Europe, followed by months of relaxation at her favorite beach resort. While relaxing, Sophia wrote a lot, which helped her express her wish to invest in property and support charities. Inspired by her thoughts, Sophia is now looking at property investment opportunities and planning her next project in eco-friendly products.

Interactive Element

Take some time this month to think about your post-exit life. Try writing about how you want to celebrate your success, how you plan to rest, and what you might try next.

What does this new phase of your life look like for you?

These thoughts will help guide your life after selling your business to be as rewarding and meaningful as the business you built.

Take this one step further?

Check out these 2 blog posts:: Why Every Entrepreneur Needs An Exit Strategy and how you can shift from Personal To Business Brand in 3-Steps