How Much Money Is Enough Money?

Money’s not important. But it’s right up there with oxygen”

Zig Zigler

Completing the successful sale of your business is complex and multiple factors will play a part.

But there’s no getting away from it, the M-word will dominate every conversation you have.

Yes, Money.

I can’t tell you how important a clear understanding of the financial aspects of the sale is to a successful exit and yet so many business owners don’t give it much thought beyond a headline number.

Finding Your “Magic Number”

At a party in New York held by a well-known billionaire, the writer Kurt Vonnegut tells his friend, Joseph Heller, that their host, a hedge fund manager, had made more money in one day than Heller had earned from his best-selling novel, Catch-22, in its entire history since first published.

Heller reflected and calmly responded, “Yes, but I have something he will never have — enough.”

So, have you ever given much thought to the question — how much is enough?

As an entrepreneur, you’re head down, focused, busy, pitching, hiring, firefighting and rarely have enough headspace to think.

If you don’t know what you want out of your life, your answer to the question “How much is enough?” is always going to be “More” — and that’s not a great place to be.

There is a better way.

Your Ideal Lifestyle

This is the key that unlocks all the money questions. You need to consider, in detail, your life after the sale.

• Where would you live?
• What would you do?
• What would your lifestyle cost?

Financial Freedom

Having enough personal income to fund your perfect lifestyle without ever having to work again is independence and freedom — and it can be calculated.

As a basic rule of thumb, multiply the income you will need x 25 and you will have an idea of what ‘enough’ means in the context of selling your business.

Once you have an idea of your number, the fun begins!

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