| In June of 2005 I was 49 years old, my husband | | | | the new mortgage. This decision enabled me to |
| and I had recently moved our business from | | | | reduce my monthly expenses by two thirds. I |
| being home based into an industrial complex, we | | | | now had a substantial savings cushion which |
| had believed our business was really taking off to | | | | allowed me to start my life over in a new city. |
| a new level which we had worked nine years to | | | | Before leaving California I sold off the |
| achieve. Then my husband passed away and left | | | | manufacturing portion of the business to the |
| me with a business to run, personal debt, no life | | | | company I had been jobbing the work out to. I |
| insurance, a business owners insurance policy that | | | | had retained a portion of the business I was able |
| did not cover death of the owner, nor did the | | | | to handle from my new city because several of |
| workman's comp policy. Ultimately, I had | | | | my key accounts expressed interest in continuing |
| numerous financial challenges and was starting | | | | our business relationship. I decided to focus on the |
| over at mid-life. | | | | hand full of customers that generated the largest |
| First I had help from my father to think through | | | | amount of income historically to our business. I |
| the immediate decisions. This was important | | | | then decided to pursue full time another business I |
| because when you suffer a life changing transition | | | | had only started part-time back in 2003. This |
| such as I did you need help from someone who is | | | | business required a more substantial cash |
| level headed and supportive of your best | | | | investment which I now had and required more |
| interests. | | | | of my time which I also now had. With my time I |
| Second I decided to prioritize the immediate | | | | laid a plan to visit and join new networking groups |
| decisions versus those that could wait a month or | | | | with the goal of starting new relationships and |
| more. I first needed to figure out a way to keep | | | | exploring the business community at large. I have |
| my business operating even in the short term. I | | | | expanded my website and marketing efforts of |
| made contact with another business owner in the | | | | that website. Interestingly being in a new city has |
| same business to job out my immediate | | | | increased the awareness of my business and |
| manufacturing needs. I then decided to downsize | | | | myself. Its seems people are interested in hearing |
| instead of hiring more help to take over the tasks | | | | about those who have moved from California |
| my husband performed. I made this decision | | | | because they can not imagine why you would |
| because I was not mentally prepared to take on | | | | move to Minnesota! |
| more employees. | | | | Financial Lessons I learned; |
| Eventually, I was able to sublease the building we | | | | |
| had recently moved into. I sold our manufacturing | | | | 1. Do not make big decisions after a life altering |
| equipment and continued to outsource my | | | | situation without knowledgeable assistance. |
| manufacturing. I kept my two employees which | | | | 2. Insist you have a life insurance policy on your |
| freed up time for me to focus on long term | | | | spouse particularly if you are in business together. |
| business goals and short term personal needs. | | | | 3. Buy mortgage insurance |
| Being left with a small amount of savings, | | | | 4. If you are a small business owner and have |
| retirement accounts and other personal assets, I | | | | employees, be sure your employees could run |
| decided to refinance my house taking a small | | | | your business in the short term during a life |
| amount of cash out to pay off all of our personal | | | | altering situation until you are able to make major |
| debts. This enabled me to make future decisions | | | | decisions on the future of that business. |
| without the worry of debt looming over me each | | | | 5. Be sure you have an insurance agent that has |
| month. I knew my business would pay for my | | | | your best interest in mind when making insurance |
| home and my monthly expenses. These were all | | | | coverage decisions. |
| short term decisions. | | | | 6. Get a qualified financial planner to work with |
| By the end of 2006 I decided to sell my house in | | | | you and advise on strategies for your future, |
| California and move back to Minnesota which was | | | | both short and long term. |
| where I had roots. I made this decision for | | | | 7. Have 6 months worth of savings you can tap |
| several reasons, being near my family for support | | | | into should you have a life altering situation which |
| was primary and secondary was the cost of living | | | | will afford you some time to make good decisions |
| in Minnesota was substantially less than in | | | | without wondering how you will pay your next |
| California. At the age now of 50 I was looking | | | | months mortgage. |
| closer at my future and what it would take | | | | 8. If you own a small business be sure you have |
| financially to continue to save for retirement. | | | | enough capital to pay a minimum of three months |
| Living in California was not a wise choice based on | | | | expenses should you have a life altering situation |
| the cost of living and the fact I was left with no | | | | which gives you some time to make decisions |
| life insurance and no other sources of income | | | | about the future of that business. |
| other than what I would generate myself. | | | | 9. Always have a good CPA that can advise you |
| In January of 2007 I put my house on the | | | | on your financial choices when facing any life |
| market, it sold in eight weeks and I was able to | | | | altering situation. Many good CPA's have resources |
| move the end of April 2007. I downsized into a | | | | for business valuations should you decide to sell |
| townhouse. With the equity I had in my house in | | | | that business. |
| California I was able to pay off three quarters of | | | | |