Those that retired from their own Business

[YeahNo]

Thank you for your thoughts. The way my mind works I am either fully in or fully out. I just can't do things half way. That is probably why I have never had a vacation longer than 5 business days in 30 years. I have no desire to maintain control. I am selling because it is time to move to another chapter and I have no desire to take the business back. I am going to sell to my two senior people that have been with me for more than 20 years. They will pay me out over 5 years. I do not need the income or proceeds for retirement but very much do want them to succeed. So in addition to the sales price we will have a consulting contract. I will work 3 days per week until December and then I will stay on for a year on an as needed basis.

The "business" has been very good to me and I hope it will now be very good to them. They have earned it.

Already shopping for woodworking equipment and planning a 1 month vacation in Europe. It is still somewhat surreal to me.

I think my whole ideal of building it and then letting someone run it got implanted in me at an early age. My Dad was a workaholic (and still is) so he wasn't around much for family activities so I learned I never wanted to do that. So what is the opposite of this? Create a business and have someone run it for you once its built up so you can have an excess of the most valuable asset, TIME. I think my ideal situation might eventually be to sell a small portion to get a cash infusion but I'm not sure how realistic this is as most probably want to buy the whole company.

As far as vacations, I can't say this any louder...MAKE UP FOR LOST TIME!! Book that month vacation as soon as you can. My wife and I just did our first 6 week long vacation the end of last year and it was absolutely amazing. We live in a cold weather state so being able to get out of town and back to the warmth was great. We rented a home on VRBO and it was so much better than doing the hotel thing, at least for extended stays. It really started to feel like our own home after a week or two and we didn't miss our actual home at all. We are now planning 2016-2017 winter trip ideas.

All of this made possible because I had a Dad who was a workaholic, a business that succeeded, and a wife on the same page.

 

[RIGM]

I and two others started and grew and engineering consultancy into an Inc. 500 company in a seven year period of time. Sacrificing home life for business was not a trade-off the three of us (nor our employees) had to make. We structured the company and the culture so that everyone could "work from home." In the early 1990's that was so unusual that the city newspaper did a front-page business section article on us. Of course, the nature of the work allowed this and it helped that we had a professional staff. We eventually had an offices, but never compelled work to be done there. I feel extremely lucky that I was able to have a terrific career and business, and that it did not significantly affect my family life (growth like that certainly has some effect, but it was manageable).

We sold the business to a larger company a little more than a decade ago. We had a 5 year management contract and 5 year earn-out. At the end of that, it was easy for me to walk away. I had pride in what we had built and the work we accomplished for our clients, but I always saw it as a means to providing FI.

There is a broader issue couched in the OP's first post (a thread which runs through many posts on the site): "I am comfortable and familiar with what I have now; so will I be (how can I be) comfortable and happy once that goes away?" My spouse is dealing with that now, moving her mother from her home of 50 years to an independent living facility. One of the best ways to answer that question was put forth in a book, Stumbling On Happiness, which essentially said that if others have found something that brings them happiness, it probably will bring happiness to you as well (we're not as unique as we think). Many people have trouble processing the change and letting go, but then find they are happier once in the new place. From the last post of the OP, it sounds like this is the case in his life.

In addition to the business above, I've started and owned five, diverse businesses (all of which I no longer own), and I previously worked in a couple of Mega Corps as well. Be really careful about shackling yourself with the headaches of a full-blown small business in retirement. If you need the cash flow from that to live, you're neither FI nor ready to RE. I still work part-time because I enjoy it, but I am a single person LLC. Nobody relies on me to make a payroll, and cash flow from the business is irrelevant to me. Use the same Stumbling On Happiness concept from above: do other franchisees / owners of this type of business love it (and make money from it)? If not, run away. Owning a small business is not better or worse than the Mega Corp job, it is just different. Would you be trading one job from which you want to retire for another, likely with more stress?

 

[AnIntentionalRoad]

I sold my company with 50 employees to a rapidly growing technology company that IPOed about 6 months after they acquired us. I spent exactly 1 year at the acquiring company, babysitting the integration.

After 1 year I gave my notice and moved onto a sailboat with my wife and two kids and sailed the islands for a year. This was an important stage for me to leave the work world behind and embrace my new life. Also, I felt a strong need to rebuild my relationship wit my family, after years if long hours build the company.

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[YeahNo]

I sold my company with 50 employees to a rapidly growing technology company that IPOed about 6 months after they acquired us. I spent exactly 1 year at the acquiring company, babysitting the integration.

After 1 year I gave my notice and moved onto a sailboat with my wife and two kids and sailed the islands for a year. This was an important stage for me to leave the work world behind and embrace my new life. Also, I felt a strong need to rebuild my relationship wit my family, after years if long hours build the company.

Sent from my SM-T237P using Early Retirement Forum mobile app

Sounds like a great ending you have there! Were you into sailing prior to the trip or was this new for you?

 

[AnIntentionalRoad]

Sounds like a great ending you have there! Were you into sailing prior to the trip or was this new for you?

I had a boat for a few years, did a carribbean charter, and then a transatlantic trip prior, but we still had a lot to learn before pushing off from the dock.

Sent from my SM-T237P using Early Retirement Forum mobile app

 

[dvalley]

I really enjoy hearing about the types of businesses folks own/ed. It's always been a dream to own something even if it's super small but just haven't been able to find the courage or the right field. I'm in IT and the small time businesses in that field start and close weekly, I see it first hand.

 

[phil1ben]

UPDATE

Closed on the sale of the business yesterday. Will stay on for 6 months for three days per week and then complete exodus on December 31. I do have a consulting contract for 5 years but nothing much to do. Employees were all informed earlier in the week. I left the office early yesterday at 1:00 and I will say I felt different. To some extent a weight lifted off my shoulders. Through the ups and downs of starting and running a small business I felt responsible for the firm's 30 or so employees. It has been a major part of my life (all encompassing to a large degree) for the past 26 years. Not even sure what the world is like during the week before 7:00pm. Strange but I felt bad (almost guilty) being out of the office during the workday. I realize it has been only one day but it also made me realize I have a lot of acclimating to do. No looking back because I have not enjoyed working for the past 5 years and I know that, but I will say it was just plain strange. While in the drugstore, it was taking the clerk a little longer to find a prescription and I thought to myself "where's the rush". I need to keep saying that to myself.

 

[COcheesehead]

Good thread and I just saw it today with the update. I too am on this path. Started a business 20 years ago and I am now in the process of selling it.

 

[YeahNo]

UPDATE

Closed on the sale of the business yesterday. Will stay on for 6 months for three days per week and then complete exodus on December 31. I do have a consulting contract for 5 years but nothing much to do. Employees were all informed earlier in the week. I left the office early yesterday at 1:00 and I will say I felt different. To some extent a weight lifted off my shoulders. Through the ups and downs of starting and running a small business I felt responsible for the firm's 30 or so employees. It has been a major part of my life (all encompassing to a large degree) for the past 26 years. Not even sure what the world is like during the week before 7:00pm. Strange but I felt bad (almost guilty) being out of the office during the workday. I realize it has been only one day but it also made me realize I have a lot of acclimating to do. No looking back because I have not enjoyed working for the past 5 years and I know that, but I will say it was just plain strange. It was taking the clerk a little longer to find the prescription and I thought to myself "where's the rush". I need to keep saying that to myself.

Wow, that is HUGE news. Congratulations!!!

 

[Ronstar]

UPDATE

Closed on the sale of the business yesterday. Will stay on for 6 months for three days per week and then complete exodus on December 31. I do have a consulting contract for 5 years but nothing much to do. Employees were all informed earlier in the week. I left the office early yesterday at 1:00 and I will say I felt different. To some extent a weight lifted off my shoulders. Through the ups and downs of starting and running a small business I felt responsible for the firm's 30 or so employees. It has been a major part of my life (all encompassing to a large degree) for the past 26 years. Not even sure what the world is like during the week before 7:00pm. Strange but I felt bad (almost guilty) being out of the office during the workday. I realize it has been only one day but it also made me realize I have a lot of acclimating to do. No looking back because I have not enjoyed working for the past 5 years and I know that, but I will say it was just plain strange. It was taking the clerk a little longer to find the prescription and I thought to myself "where's the rush". I need to keep saying that to myself.

Congrats! And you have a great transition period to ease into full retirement!

 

[Milton]

What motivates them? Well, $$$, autonomy, getting to control the show, etc. We changed the way they were paid once they took over. One of them doubled his salary and the other increased by 50%. These are life changing amounts for them. I have full control which is nice so yeah I make major decisions.

So essentially, money.

 

[phil1ben]

2d UPDATE

Now it has been 4 months since the sale of my business and I have been working only three days per week since July 1. Full retirement on December 31. The transition has been much easier than I expected. Letting go has not been an issue. Now Fridays and Mondays are like Saturday and Sunday. My e-mail count has dropped from over 150/day to a few per week because the buyer and his group have largely taken over. It has been truly wonderful. A couple of observations from this 56 year old:

1. I seem to think more about my health now then I did before. Perhaps because I have more time. No change in circumstances.
2. When we go out to dinner on Mondays I notice that there are a lot more people "my age" in the restaurant. I seem to be more conscious of age than I was before. Don't know why.
3. When we informed clients (many of whom were my age), they took the news much better than expected and well understood. Many have been considering the same thing.
4. When people ask, "What will you do" I have been answering "Whatever I want".
5. I spend a lot of time planning vacations. My wife who has been stay at home for the past 18 years is hesitant to commit to vacations like I am. I am ready to go. I guess it is a little like a bird being let out of a cage.


In a word it has been great and I am looking forward to January 1 when we board a plane to the Caribbean to celebrate my first day of retirement.

 

[medved]

This is great to hear, Phil1ben. Congratulations. I will be interested to hear how things go for you, and how your thinking changes (or does not) over time. Best wishes!

 

[Asher Aion]

Great to hear. Selling a business can be a great relief valve for stress! Also very impressive with the quick change.
I am several years behind you in age but have been doing 4-5 half days a week for about two years, and enjoying it. I don't have a fixed date, they still want me around for a while. However from time to time there is a an opportunity to be pulled back in as new projects start and the juices start flowing again. When I sit back and think about it I really want to pull the entire plug as you are doing.
Congratulations!

 

[phil1ben]

3d UPDATE:

I AM RETIRED. Last day of work was December 28. Still have a consulting arrangement for 5 years as part of the transaction but I am done. They even set up a small office for me if I want to use it.........NOT. Off to St. Martin on Sunday for a week and then it will all set in. The Buyers did a great job transitioning and I think things are under control.

My oldest son just graduated with his accounting masters two weeks ago and is currently studying for the CPA. Starting with a Big 4 in September in NYC. So he will be home until September. Youngest son is a sophomore in college. Making my own list of things to do.

Just finished Steinbeck's Travels with Charley to get in the mindset to buy an Airstream (he did not have an Airstream but did travel the country between Labor Day and Xmas 1960 and wrote about his travels) and travel the country with my DW for a few months. Doing a test run in an Airstream rental in April to make sure we like it. The holidays are still upon us so I have not yet tasted reality........but so looking forward to it.

Been planning this for years and finally did it.

 

[MichaelB]

3d UPDATE:

I AM RETIRED.
./.
Been planning this for years and finally did it.

Congratulations!

 

[AnIntentionalRoad]

Congrats, phil1ben! I went through this in 2011, then a 1 year earnout, then a 1 year trip to the Bahamas with the family. Best year of my life! I'm excited for you.

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[phil1ben]

4th Update:

It is a rainy day here on Mykanos (a rarity) so I thought I would post my fourth update which also helps me to organize my thoughts. Since January we have spent a total of 40 days on vacation: St. Martin, South Beach, Savannah, St. Augustine, rented an Airstream for 7 days to try it out (never slept in a trailer or camped before) and now Athens, Mykanos and Santorini.

It is somewhat surprising to me how easy it has been to let the business go. Something I built and worked at for 27 years rarely now enters my mind. I do stop by the office once a week when I am home for a meeting with the new owners (who had been my employees for the past 20 years) but the business itself is truly out of my life. I don't miss it. I guess that this is an indication that my timing was about right. I am still copied on many e-mails but they no longer affect my mood or schedule. Previously, my life revolved around "the business".

Have spent more time with my two sons (20 and 23) in the last 12 months than I probably spent in the prior 15 years. Also have spent more time with my 85 year old mother. Have done a lot of reading on my favorite topic (European history 1650-1918) but here in Greece realized that my knowledge of ancient history is lacking.

Have started to personally do more work around our homes rather than always calling a contractor. I spent a whole day painting a fence in the sun with Carulli playing on my phone. I also seem to notice more things out of place or needing repair so we have spent more money on fixing and sprucing things up than expected. Never thought about many of these things before.

Still trying to decide whether to buy an Airstream. Surprisingly, my wife is more pro-buy than I am. I am leaning towards the rental concept but we shall see.

After we return, summer to be spent at the beach and setting my oldest up with an apartment in NYC. He just completed the CPA exam and starts at a Big 4 in October. I am sure he will need roommates. Youngest back to college in late August. Starting to plan travel for the fall around all of the Penn State football games. Wanted to audit some classes at the local university but have been closed out.

As I said before, the only negative is that all my friends still work during the week and my wife and I often find ourselves in places where we are the youngest ones in the room. And we are not that young (53 and 57). When we rented the Airstream we found that the average age of the couples camping was much more senior than us. We hope to still be so active in our 70s. All in all my timing on starting another chapter was good.

 

[Rickt]

Phil1Ben:

Thanks for the update. Glad to note evrything is working out well for you.
I am selling my business of 14+years next week and retiring as well. Look forward to traveling and spending more time with our 2 kids 28 & 22 Yrs old.

Cheers,
Rick

 

[YeahNo]

Awesome update, Phil! I love getting caught back up with how things are going for you. Don't stop doing them!

 

[phil1ben]

5th UPDATE:

John Adams wrote to his son John Quincy Adams in 1783 (when the later was 16), that "We think, and improve our Judgments, by committing our Thoughts to Paper". We do it a little differently in 2017 but nevertheless the exercise is helpful.

In the last five months I did a little better finding things to do outside of travel. I am auditing a course in Ancient Rome at a local University and enjoying it very much. It is like watching PBS live. Spending time on that beautiful campus is also very enjoyable. There are five other auditors in the class who are also retired. Also attending a furniture workshop in Philadelphia where I returned to a hobby time took away 25 years ago. I am considering putting a shop in the house. I have also been able to spend much more time reading history about my favorite time period 17-19th century up to World War I. By the way, strongly suggest John Quincy Adam's autobiography for those similarly interested.

The Airstream still has not been bought but we talk about it often. My most recent excuse is that they came out with a Globetrotter model that we like but it is too big. Perhaps they will come out with a 25 foot model that will take all my excuses away. Also, we still have not found a place to store it. I would hate paying $300.00/month for storage.

We did do some traveling spending 10 days in California driving up the Pacific Coast highway in October. It was a great trip and we finally saw Hearst Castle, Carmel, San Francisco, LA and Napa. Our time in Napa was shortened because of the fires. Other than short business trips I had not been to California for many years and my wife had never been there.

Our oldest son is all set up in an apartment in Manhattan and he started work at a Big 4 Accounting firm. The roommate thing didn't work out when the parents got involved because no one wanted to personally guarantee the full amount of rent on a 4 bedroom apartment in NYC. So we ended up renting him a 1 bedroom coop where I help him with the rent for a while. It all worked out for the best.

The year closes out with a short trip out west and a cruise with my 85 year old mother and the whole family. Really don't like cruises but it is best for my mother who has mobility issues.

So many of my friends have asked me if I did the right thing selling my business and retiring. One year in I can honestly say that my timing was right and I truly love it. I visit the office about once a week for 15 minutes and don't miss it one bit. Till next time.

 

[Ronstar]

Congrats, phil1ben! You have found the nirvana of retirement. Woodworking, study of history, travel, time with family - it doesn't get much better than that.

 

[Stormy Kromer]

I'm fairly new to this forum and didn't see this post when it first came on board.

I sold my small business in January 1, 2016. I worked there over 31 years, 28 of them as the sole owner. I groomed my successor for 3 years and sold it to him on a 10 year contract, no money down.

It was a very hands on business, if the owner/operator isn't there it doesn't generate income. It is a small town and customers expect to talk to the owner. It was all consuming, 24 hours a day 7 days a week. Slowing down wasn't an option, it was grow or get out. In a small town if you own a business, it owns you. It becomes your identify and you lose yourself in it.

Selling it probably saved my life. I moved 350 miles away the day of the sale, that was a big help. Nobody in my new community even knows what I used to do and I like it that way. The new owner is doing fine, but is learning what the stress of ownership is like. I told him to planning to exit by age 55 (he's currently 34).

Financially we've been fine, we still save about 40% of our gross income (I can't help it). For me, making a clean break was necessary. I have no desire to own any type of business again, I'm afraid it would take over my life again. I've seen way too many people sell their primary business and try to start a side business only to realize that even a small side business takes a lot of your time & energy. I don't want to invest in a small business either, I've seen too many people lose their entire investment. Just give me a Vanguard index fund any day....

One challenge would be that most people our age are still working, I've made good friends with people 20 years older than me who have similar hobbies and they're great role models in how to stay young and active in retirement. We're active in our church and volunteer a bit with two charitable organizations in our community. I was in Rotary Club for a while but found I didn't fit in, it was too "business" oriented for me. Now I'd rather do volunteer work than meet for lunch and talk business.

Having a wife on board with ER made this possible. Good luck to you.

 

[Asher Aion]

I have been away from the forum for a while, my story is very similar to yours. However I am still wo*king PT for the new owners for maybe another 6 months. I plan to stay in the same smallish town as I have DD at home in college yet (DS is in college but away from home).

I know what you mean though as you are identified so much with your business in your community. We have talked about moving away in the future, will have to wait and see.
great to hear of another former business owner on the same journey.

 

[phil1ben]

6th Update:

Since the last time I wrote, I have again enrolled in classes at a local University. This semester taking British History between the War of the Roses and the Glorious Revolution and an English Literature class on Essays. The classes are excellent. We are fortunate to live near an Ivy League university which often also has excellent speakers and concerts. It is a joy being on campus two days per week.

We spent 10 days in South Beach, Nassau Bahamas and Key West. Had not been back to Key West for 25 years and we liked it very much. Somewhat surprised at the cost of real estate in Key West but keeping this location in the back of our minds.

I spend about 30 minutes per week (when we are home) at the old office occasionally participating on a call or two and giving my two cents only when asked. This amount of time is about right and I enjoy staying slightly connected. I still receive e-mails from clients that I forward on. I am told by the Buyers that there is a comfort level with my staying slightly involved which I will continue to do as long as they desire.

We have been spending much more time in New York City (where I was born) than in the past to visit my oldest who now has an apartment there. It has been a great joy going to the Met, Broadway Shows and great restaurants WHENEVER WE WANT. Strongly recommend the new Versailles show at the Met which just opened.

Have never been to Spain so we are going in July (also for a destination wedding of a friend's daughter) and will tack on southern France. May also take our youngest to Scotland and England in June but still waiting to hear about his internship schedule.

During the past few months also devoted some time to getting all the medical check-ups I delayed while working and fortunately everything OK. Have read more than ever and finished some books I enjoyed very much. Among my favorite were "Traces of Vermeer" a short book detailing how he did what he did and "The Curious World of Samuel Pepys and John Elliot", two 17th century diarists. Playing with the idea of taking piano lessons with the knowledge that I had tried this before while working and did not practice sufficiently. Lastly, have not made a decision whether to buy an Airstream which I think will get kicked down the road another six months.

This past weekend my wife and I attended the funeral of a dear friend who died at 60. I am thankful I was able to retire at a relatively early age so we have the opportunity to do the things we want to do.

All the Best until the fall.