Ep. 69:The Importance of Passion and Professional Help in Starting a Business

Starting a business can be both exciting and challenging. Many entrepreneurs start their businesses out of passion, hoping to create something new, solve a problem or fill a gap in the market. However, passion alone is not enough to ensure the success of a business. A range of skills, including effective communication, problem-solving, and financial management, are also essential. 

In this blog post, we discuss the importance of passion and professional help in starting a business, with a focus on Tony Chen’s journey from academia to entrepreneurship. We explore how his experience with planning and selling his business highlights the value of seeking professional help, finding passion in work, and taking on new challenges.

Learn From Our Client, Tony Chen: From Academia to Entrepreneurship 

Tony, a lifelong entrepreneur and business owner, recently shared his story on the Live Life Liberated podcast. Let’s take a look.

From Psychology to Business: A Lifelong Entrepreneur

Tony’s story began in academia, where his focus was on understanding human behavior and psychology. However, as he progressed through his post-doctoral studies, Tony discovered a desire for a more dynamic and challenging environment. The business world offered precisely that, leading him to transition into entrepreneurship.

For decades, Tony built and managed successful businesses, learning valuable lessons along the way. His entrepreneurial journey was filled with highs and lows, as is often the case, but his passion for problem-solving and innovation kept him motivated.

One key insight Tony shared is the importance of adaptability in business. The ability to embrace change and tackle unforeseen challenges head-on was a cornerstone of his success. For entrepreneurs, this mindset is essential, especially when preparing for significant transitions like selling a business.

Passion in Business: Tony’s Insights

When asked about his transition from academia to business, Tony noted a significant difference between the two:

 “In academia, one often repeats the same process and uses the same tools, while in the business world, each day brings new challenges that require different decisions.”

Tony’s story is a testament to the fact that successful entrepreneurs can come from diverse backgrounds and can have a wide range of experiences. His journey shows that it is possible to find success by following one’s passion and taking on new challenges.

Preparing to Exit: The Importance of Early Planning

By 2019, Tony decided it was time to sell his business. Knowing how complex the process would be, he sought guidance from Centura Wealth Advisory to ensure everything went smoothly.

Pre-LOI Planning

Before signing a letter of intent (LOI), Tony and his team focused on evaluating the company’s financial health, identifying potential buyers, and aligning the sale with his personal goals. Early preparation was critical to maximizing the business’s value and ensuring a successful outcome.

Post-LOI Planning

After the LOI was signed, the focus shifted to finalizing the sale. This stage required careful negotiation, tax planning, and a seamless transition for everyone involved. With Centura’s support, Tony was able to navigate these steps effectively.

The Liberated Wealth Process®

Centura’s Liberated Wealth Process played a central role in guiding Tony through the sale and preparing him for life afterward. This approach helped him clarify his goals, understand his options, and feel confident in his decisions.

Tony described the experience as smooth and rewarding, crediting Centura’s expertise for making a complex process manageable.

Building the Right Team

Tony’s story highlights the importance of working with professionals who bring specialized expertise. Selling a business involves complex financial, legal, and tax considerations—areas where having the right team can make all the difference.

Tony’s team included:

• Wealth Advisors: To align the sale with his long-term financial goals.
• Tax Professionals: To handle the tax implications of the transaction.
• Legal Experts: To protect his interests throughout the sale process.

This collaborative approach allowed Tony to focus on what he did best as a business owner, leaving the technical details to his trusted advisors.

Managing Wealth After the Sale

Once the sale was complete, Tony’s focus shifted to managing his wealth. Centura helped him create a strategy to preserve and grow his assets, tailored to his goals and risk tolerance.

Exploring Alternative Investments

Tony also explored alternative investments, such as private equity, real estate, and hedge funds. These non-traditional options helped him diversify his portfolio and work toward achieving higher returns. With Centura’s guidance, he was able to make informed decisions that suited his financial objectives.

Advice for Entrepreneurs

For those considering selling a business, Tony had two key pieces of advice:

1. Start planning early: Early preparation can uncover opportunities to increase the value of your business and ensure a smoother transition.
2. Build the right team: Having experts in finance, tax, and legal matters is crucial for navigating the complexities of a sale.

Tony also stressed the importance of structuring the business to meet best practices well in advance. Taking the time to make these adjustments can significantly improve the outcome of a sale.

Key Takeaways

Tony’s journey offers practical lessons for business owners:

• Adaptability and a willingness to embrace change are essential.
• Passion is a great starting point, but success comes from preparation and strategic thinking.
• Professional guidance can help business owners achieve their goals and avoid costly mistakes.

At Centura Wealth Advisory, we’re here to help entrepreneurs navigate major transitions, plan for the future, and take control of their wealth.

Connect With Centura

At Centura Wealth Advisory, we go beyond a traditional multi-family office wealth management firm to offer advanced tax and estate planning solutions which traditional wealth managers often lack in expertise, knowledge, or resources to offer their clients.

We invest heavily into technology and systems to provide our clients with fully transparent reporting and tools to make informed decisions around their wealth plan.

Read on to learn more about our 5-Step Liberated Wealth Process and how Centura can help you liberate your wealth.

Disclosures

Centura Wealth does not make any representations as to the accuracy, timeliness, suitability, or completeness of any information prepared by any unaffiliated third party, whether linked to or incorporated herein.  All such information is provided solely for convenience purposes and all users thereof should be guided accordingly.

We are neither your attorneys nor your accountants and no portion of this material should be interpreted by you as legal, accounting, or tax advice.  We recommend that you seek the advice of a qualified attorney and accountant.For additional information about Centura, please request our disclosure brochure as set forth on Form ADV using the contact information set forth herein, or refer to the Investment Adviser Public Disclosure website (www.adviserinfo.sec.gov).  Please read the disclosure statement carefully before you engage our firm for advisory services.