It’s no secret that Atlanta’s technology start-up scene is booming. I’ve had several young and very successful tech leaders ask me what they should do when they sell their company for millions – thus, this posting. I have to preface this blog by clearly stating I have never sold a company for millions. However, in seeking feedback from numerous sources and speaking to different entrepreneurs, I’ve come up with this simple list to help you manage your new fortune the right way:
- Set Up Your Team – CPA, Attorney, Financial Planner and Most Importantly, Good Family Around You
We’ve all heard the stories of people going broke after they hit it big and win the lottery. Take the time before you ink the deal to get these important relationships in place with people you trust, as they are crucial for your future success. And, it may be easier to identify the trustworthy partners before rather than after.
- Keep Your Circle of Friends Small
Think about when pro athletes become millionaires overnight after walking across the stage on draft day or signing their first big non-rookie contract. All of a sudden they have friends and family coming out of the woodworks looking for a handout. This could be you, too. Prepare for Old Uncle Joe’s call by practicing saying no. Establish a process for when these requests come through, which may include some of the folks from #1.
- Set Money Aside for Your Next Business Venture or Charitable Foundation
We know all too well from years of working with entrepreneurs that start-up is in your blood. Once you sell your firm for millions, you won’t sit at home and do nothing. Think about what you are passionate about, and what you would do with that money before you make it big. Is there another business idea or possibly a nonprofit you’d like to help? Follow your passions, because you’ll get bored playing golf every day.
- Give Back to the Startup and Technology Community
The saying ‘Giving is better than Receiving’ is true in business as well. You didn’t get a chance to make it big on your own. Help the communities that contributed to your success and give hope to future entrepreneurs and startups. Buy a building, invest in a co-working space, teach, or get involved in other business ventures that need your expertise and capital. Take a page from fellow entrepreneurs who have given back to the community like the Atlanta Tech Village (http://atlantatechvillage.com). Providing resources and shared space for future generations can help create jobs and bring together the like-minded entrepreneurs who will help shape our future business environment.
Don’t forget these four simple tips when you sell your technology company for millions. Most importantly, don’t forget where you came from or the people who helped you before your name was on the front page of the paper.
Private CFO™ and Vice President oXYGen Financial, Inc.
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