How to handle a surprise cash raise if you’ve sold your business

When Kristen Heaton launched her business in 2013, she never dreamed of selling it for seven figures. So when she sold it to Amazon aggregator perches in July 2021 he hired a financial advisor to make sure his family could get the most out of their new wealth.

“They sat us down and just wanted to know where we were interested in putting the money,” Heaton said. “It was really important for us to make sure we looked into our children and set things up for them years down the road in a trust.”

Crave the naturals has sold more than a million of its signature product, a detangling brush, with total sales of nearly $ 15 million. The brush has it nearly 60,000 reviews on Amazon.com.

But it was a new experience, even an overwhelming one, to sell the business, as well as to enter into a wealth that he had never had before.

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

Based on what he learned from others, Heaton decided that a professional financial advisor was a safer bet than 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, working with a financial advisor, he will work with me to buy those risky stocks, but then also compensate them with safe stocks and dividend-providing stocks. over time and so on, so that we can aim to grow the portfolio with a more moderate risk approach, “he said.

Hence, Heaton recommends taking some of the money to reinvest in areas that you are passionate about.

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

“One of my biggest concerns right now is that the next generation probably won’t be able to afford a lot of housing. So it was really important that we buy some properties that we knew we could pass on to them. Later in life so they would be fine.” .

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When Heaton sold her brand, she knew she wasn’t ready to stop being an entrepreneur. This also helped her inform her of 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 a fact that I just wanted to start another one right away. So at this point we had the money to be able to do that. branding agency and you only have one cohesive brand to launch.While with Crave Naturals, it took years to be able to afford that kind of thing.

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

The entrepreneur says it’s important to remember that success doesn’t come without the help of others, and it’s important to use some money to pay it back.

“When I started Crave Naturals, I was heavily in debt. I had a lot of student loans. I was living on paycheck by paycheck. And one of my good friends, her husband who was helping me with this program to sell products online, he actually paid for ours. first round of inventory, ”Heaton said.

“I think it’s important that while I continue to do what I love, you help others do the same. So if there’s an entrepreneur who needs help along the way, or needs someone to invest in him financially or through mentoring, it is something that I have an interest in doing along the way. I feel it could pay off both myself and the entrepreneur. “

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Disclosure: NBCUniversal and Comcast Ventures are investors in acorns.