A 21 year old who had a company that was sold for $30,000,000.00 would almost certainly not be on Quora asking this question.
A company that size would have many employees, and either a smart owner or great counsel. Board of advisers, or investors already who have advised the company to that size. 30 Million Dollars is no small feat.
I’ll assume this is hypothetical and I’ll answer this all the same.
You diversify. You don’t put all your eggs in one basket.
First, we’re going to assume that you owned only 50% of the business. I’ll throw that in there. As it’s rare to sell a 30 million dollar business and have 100% ownership. For the sake of argument, and to make things simple, 50%.
Then, we’re going to assume you have sales costs, lawyer fees, and taxes to pay on your earnings.
So all in, I’m going to assign a number of money you actually made on that sale, we’re going to say you earned 9.5 million dollar from your share after all expenses. So of your 15 million (50%), 5.5m went to taxes and other expenses. You made 9.5 million.
Putting all 9.5 million to investors would be a bad and risky move. You are young, so if you want to turn that money into more money, you need to invest in yourself.
- 1.2 million into savings.
You want enough into savings that you can live minimally off the interest. Depending on what type of savings it’ll be different. I’m not going to get into inflation and other factors. But let’s assume at a solid 2% return (still a bit high). To simplify things, that’s $24,000 year earnings.
That should be enough money for you to live off of until you get going with your next project. That’ll cover food, living, travel/gas, everything as if you were making minimum wage. This is free money.
- 2.5 million into stocks and higher risk investments.
Get yourself two primary brokers to each manage 750 thousand. Then get a third broker and use 1 million and copy Warren Buffet’s top 5 portfolio stock investments. They don’t need to know about each other.
Diversify your portfolio for each of the two 750 thousand ones. You want a nice range of options. But keep focused. Maybe have one do energy and the other do health care related or something.
- 500 thousand into cryptocurrency.
Crypto is a thing right now. But don’t put too much into it. Just see where it goes. I’d recommend using 400 thousand and spread that between 5–6 major cryptos (seek advice on the market), then spend that last 100 thousand and put a small amount into every single new crypto as it gets released. Expect to throw a lot of money away, but you never know when that next bitcoin will come. Being first in the door could potentially have a massive payout.
- 350 thousand (value) to go towards your parents.
You wouldn’t be where you are now without your parents. If you sold a company for 30 million. Then your parents did something right.
Time to pay them back. Pay off their mortgage, buy them a new car, send them on vacation. They’ve earned it, dealing with you for 21 years.
- 50 thousand into something nice for yourself.
Wait, why only 50 thousand?
You are young. You have a lot to learn, and the biggest mistake anyone makes when coming into money is spending too much on themselves for “extra” luxury uneeded things. You do not want to tempt yourself and get that ‘taste’ of success too early.
Always set the bar low first. Because no matter what you do, each time you get wins in life, you’re going to raise that bar to reward yourself. And if you set it too high, you will be broke.
You will thank yourself in your future if you can keep this to under 50 thousand.
What do you do with that 50 thousand? You buy a lower end brand new car. Toyota, Chevrolet, Ford. Or you buy a used higher end car. A used lambo, a used mercedes. You do not buy a brand new luxury car. Worst investment you can ever do.
- 1.5 million into investing in yourself.
So what is investing in yourself?
Investing in yourself is learning, getting knowledge, getting educated. You want to improve yourself daily. Get a mentor. Pay for coaching lessons.
I would recommend getting a coach for stocks, investments, and crypto. Pay for someone to teach you these things.
Buy a ton of books, every business book you can get your hands. Read every single day.
Take webinars online, go to local seminars, anything business related to help your future.
Hire some top coaches to get you up to speed and provide you the most value possible. Lessons that will follow you for life. Lessons you can utilize and earn more money. The more you invest in yourself, the faster, and further you will go in life, and the more money you will make.
- 1.2 million into private investment.
Work together with your lawyer and find local angel investors, and Entrepreneurs and do private investments together with them.
This is extremely high risk, but you can still diversify and start small. 1.2 million can fund a lot of start-ups and small businesses. With the right guidance, and starting young like you can be extremely rewarding.
I would also look into real estate. Especially global, China and Hong Kong have massively growing markets. Doing private real estate deals can pay off well.
- 2 million into your next business venture.
You’ll put aside 2 million into your next business venture that will hopefully give you another 30+ million dollar sale.
As you’ve already been successful once as an Entrepreneur, it only makes sense to do it again. Each time you do a business, you are better off then the last time.
Do not use all the money at once. Spend it wisely. Hire a proper CEO for your start-up. Put together a proper team. And get an adviser to manage that 2 million dollars for you.
- 200 thousand into other expenses.
The last 200 thousand will go towards your lawyer and other costs you have for doing all the above things.
Leave a Reply