“Since you talked me into transferring more stock than I thought I was ready for last week, I’ve been having panic attacks. I think I want to change my mind,” Bill worried aloud.
I told Bill, “You are experiencing seller’s remorse, a very common occurrence among business owners who sell their companies. Sellers remorse is an emotional response to what is usually an irrational belief that you’ve done the wrong thing.” Fear, insecurity, and uncertainty about your own future can grip you hard.

Now, even when you’re selling a small block of stock to your own child, sellers remorse can still have an impact. It still feels like you are parting with your business, even though you are not. Often it’s a business you built with your bare hands, watching it grow and nurturing it. It’s like you’re baby. To sell a piece of it is like tearing a piece of your flesh away.

But when this is done correctly, with clearly defined roles and responsibilities your remorse will be minimized. Make sure to create covenant agreements between you and your child detailing your new partnership and how decisions will be made, how you will handle conflict and communication, and define commitments to the preservation of the culture you’ve created. The shift in leadership will be gradual, not cold turkey. You’ll still be very much involved, but more in a mentor role than ever before. Business owners usually have an intuitive way about them and becoming a partner with your child is your opportunity to begin conveying the intuitive way you think about things and the way you make decisions.

Check out my final post on the Expert Business Source titled: "This Feels Good - Let's Do it Again."