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Here’s how to handle a surprising increase in money if you sold your business

When Kristen Heaton launched her own business in 2013, she never dreamed she would sell it for seven digits. So when she sold it to Amazon aggregator Perch in July 2021, she hired a financial advisor to make sure her family could get the most out of the new wealth.

“They put us down and they just wanted to know where we were interested in putting the money,” Heaton said. “It was really important for us to make sure we took our kids into consideration and set things up for them year after year in a trust.”

Crave Naturals has sold more than a million of its signature product, a hairbrush that filters out, with a total turnover of nearly $ 15 million. The brush has nearly 60,000 reviews on Amazon.com.

But it was a new experience – even an overwhelming one – to sell the company as she went into wealth she had never had before.

“The first thing I would do if you ever get into money that you are not used to is talk to people who come from money, talk to people who have gained new wealth in their lives, different entrepreneurs. See where they focus their time and effort to grow their money and keep them safe, “Heaton said.

Based on what she learned from others, Heaton decided that a professional financial advisor was a safer bet than just going it alone.

“I tend to be a risk taker and it would not be unheard of for me to invest in some risky stocks. So in collaboration with a financial advisor he will work with me to buy the risky stocks but then also offset it with safe equities and equities that provide dividends over time and what so we can aim to grow the portfolio in a more moderate risk approach, “he said.

Then Heaton recommends that you take some of the money to reinvest in areas you are passionate about.

“My husband and I have always had an interest in real estate investing. And right now, the market where we live is just continuing to grow. So it just made sense for us to buy real estate that we can give down to our children. day, “Heaton said.

“One of my biggest concerns right now is that the next generation, they probably are not going to be able to afford a lot of housing. So it was just really important that we bought some properties that we knew we could pass on to them later in life so they would survive. “

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When Heaton sold her brand, she knew she was not ready to stop being an entrepreneur. It also helped inform her next decision on what to do with some of the new wealth.

“It spurred a creative side of me that I didn’t really know existed, so when we sold the brand, I knew for sure I just wanted to start another one right away. So we had the money at this point to be able to hire as a branding agency’s brand voice and just having a coherent brand to launch.While with Crave Naturals it took us years to afford that kind of thing.

“So in the summer, after we sold, we started working night and day to build this new brand. And now we have the new brand that we are launching, it’s called Bare August; it’s a foot care line, and it’s available. “And for me, I think I’ll just keep doing what I love for as long as I can,” Heaton said.

The entrepreneur says it is important to remember that success does not happen without the help of others and it is important to spend some money to pay it off.

“When I started Crave Naturals, I was super in debt. I had a lot of student loans. I lived paycheck. And one of my good friends, her husband, who helped me with this program to sell products online, he actually paid for our first round of fixtures, “Heaton said.

“I think it’s important that when I continue to do what I love, I help others do the same. So if there’s an entrepreneur who needs help along the way, or they need “someone to invest in them financially or through mentorship, it’s something I have an interest in doing along the way. I feel it could pay off for both myself and the entrepreneur.”

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Disclosure: NBCUniversal and Comcast Ventures are investors in Acorn.

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