Terms such as “vision,” “strategy” and “tactics” all have a place in determining how you will reach your business goals. What’s important is that you start your planning with a clear idea of what you want your business to become
The starting point for any business owner is his or her vision of the future – what the advisor wants his or her world to look like at some point down the road
A well thought-out business plan will take you further than arbitrary growth targets set with no strategy for reaching them. These paths toward growth carry varying degrees of risk
What financial advisors can expect at each stage of growth
Is your financial advisory practice’s strategic planning process stuck in neutral? If so, you may want to ask yourself — and your staff — the 10 key questions that will help you come to a consensus and implement a solid strategy
There is a natural order to the creation of a long-term plan for any business. Begin your planning with a clear vision of what you want your business to look like down the road
An advisor asks, “Is it all worth it?” The answer – and a clear sense of purpose – can be found through a series of questions and by creating a comprehensive vision for the future of your practice
This five-step review of your practice can help you prepare for the challenges that lie ahead and boost your confidence in your ability to thrive in the coming year
Advisors will continue to have an important role in an increasingly technology-dependent world. The job will be to engage clients in determining the best courses of action to meet their goals
The technological revolution will have a profound effect on the way advisors run their businesses – from compensation models and compliance to products. The way you handle that change will make or break your practice
Taking the lead in your branch means you have responsibilities that extend well beyond your personal activities, and you are vulnerable should things go wrong. Start by questioning everything that currently holds your branch together
As any enterprise grows, it becomes more bureaucratic in order to cope with the increased complexity of its business. When that happens to a financial advisory practice, it can make the advisor feel stagnant, despite his or her success
Although some of the strategies and tactics a coach suggests might be familiar to you, the discipline to implement them can be elusive. Here are some of the steps many professional advisor-coaches help their clients take
When an advisor in your branch is working below par, you can take steps to identify the root of the problem and possible corrective action. Bear in mind, however, that not all advisors share the same definition of “success”
The way you compensate your team can have a profound effect on your staff’s morale and productivity, as well as your profitability. There are many ways to reward your staff with incentives and bonuses
If your practice is growing beyond your ability to maintain a high level of service for your clients, you may need to hire someone to manage the people, the processes and the projects of your business
An inevitable result of a successful practice is that you can’t possibly do everything yourself. If you are concerned that others will not be able to perform some tasks to your satisfaction, it’s time to confront those concerns and learn to delegate
The decision to move from your residential setup into a full-fledged commercial office should be part of the plan to grow your business — and not simply based on you feeling the need to make a change
All entrepreneurs reach a point in their careers when they question their motives and their future. This stage actually is an opportunity to reaffirm your objectives, improve your processes and put you on the path to success
Once you have decided to switch to a fee-based practice, the next question is how much should your clients pay for your services. There are many factors to consider in arriving at a fee structure that’s fair to both you and your clients
Several trends shaping the financial advisory business will affect your practice. The keys to coming out ahead lie in improving your service and embracing technology
Although a face-to-face client meeting is a powerful opportunity to strengthen the relationship, one advisor worries that his review meetings have become mechanical, repetitive and “not much fun anymore”
The quest for insight into what makes some advisors succeed when others fail is global. While there is no single answer, we know that top-performing advisors do some things that other advisors don’t
You and your staff may want to continue working from home once the pandemic is over — which could have major implications for how you structure your practice
Outsourcing some aspects of a financial advisory practice is becoming increasingly popular because there are more options available and technology has made delivery of services faster and less expensive
As your practice gets bigger, more time and attention must be devoted to managing the business. Growing successfully means taking steps to ensure you are focusing only on those activities that require your skills
Although some advisors view the advent of technology as a threat to their existence, others foresee collaboration between the power of technology and the professional judgment of a human advisor
Many successful entrepreneurs reach a point in their careers at which they find themselves dogged by administrative duties while doing less and less of the work they love. You can overcome this funk, but you must be prepared to change.
In order to appreciate the full worth that a client brings to your business, consider 10 years’ worth of revenue, then add the lifetime value of all the clients he or she has referred to you
As shocking and sudden as the departure may seem, chances are you missed some of the signs that you were no longer the centre of that client’s financial universe. Here are some ways to prevent defections
Acquiring a book of business can result in an overwhelming increase in your workload. Here is a strategy to help you and your team manage your clients more effectively – and profitably
The valuation of a financial advisor’s book of business for a divorce settlement must be based on a proven methodology that brings appropriate perspective and rationality to the discussion
No matter how simpatico you may feel about your partnership with another advisor, it’s crucial to plan for the possibility that your relationship will encounter rough waters if and when you decide to part. Reduce the friction by planning ahead
Developing a disaster plan or contingency plan forces you to think about your own mortality – and morbidity. But that’s a good thing to do periodically, for both your personal and professional peace of mind
Early valuations and regular reviews can help you determine whether you can make the transition to retirement at any time. You also can account for changes – both internal and external – that may affect the value of your business
The period leading up to your succession is not a time to slow down rather, work harder to increase the value of your business. And you have to make sure your team members are planning to stay on board through the transition
Advisors are gradually awakening to the necessity of planning their transition from their practices, but the job is far from done
There are some steps you can take that not only will maximize the value of your business when you’re set to transfer it to another advisor in the future, but also will help to put your business on more solid footing today
Figuring out how much your business is worth is both an art and a science. Once you understand the five principles of practice valuation, follow these steps to determine an appropriate price range
Almost everything that’s written and presented on the topic of succession planning offers advice to advisors who are leaving the business. But the role of the successor can be difficult if both parties fail to plan properly
Many factors can affect the price your practice will command, but the amount of recurring revenue is one of the most important
Planning your exit with a 10-year time horizon has its advantages. You can start training the advisor who will replace you at an early stage in his or her development, but don’t expect your protégé to share all your work habits
Hiring a junior advisor early on with the intention that he or she will take over your business has many advantages. Your clients will be assured that their needs will be met after you retire
It can be gratifying to discover that several advisors are interested in taking over your book and willing to spend time getting to know you and your clients for several years before the transition. But it’s key to choose the right person
Many advisors rely too much on a backward-looking list of quantitative information to arrive at the value of their practice when they are preparing for a transfer of their book. But the factors to assess are much more varied
Making sure your plans to sell your business are under wraps is critical, especially in the early stages. Here are some strategies to help you prevent leaks of private information that could sabotage your plans
Helping business-owner clients transfer their businesses can enable you to end your career on a high note
A methodical, step-by-step investigation of the many factors involved in retiring from your business can help you to make this difficult decision. There are several financial and emotional questions that you need to answer
While you may have a strong motivation to have the kids take over your practice, family successions don’t always work out as planned
The leading edge of the baby-boomer generation is starting to retire, and that includes many financial advisors. While most senior advisors are in their mid- to late 50s, few have given much thought to succession
Here are some universal considerations that apply to succession planning, regardless of the size of the firm. But planning your departure from the top position at a larger organization poses some special challenges
You don’t have to have a transition date chiselled in stone, but you should have an approximate target for your departure from your business. Then, you can begin to determine which succession option works best for you
An advisor who will see his practice double with the acquisition of a retiring advisor’s book of business wants to know the benefits of a policies and procedures manual — and what it will take to put one together
The emotional aspects of making the transition to retirement can be the most challenging of all. The cases of two advisors demonstrate the importance of defining what retirement means to you
Although you should always seek independent legal advice before entering into anything as important as a succession agreement, here are some guidelines for the kind of information that should be included
Arriving at a fair value for your practice is one of the most critical aspects of succession planning because it has a major impact on both an emotional and a financial level
A significant number of financial advisors are approaching retirement age, yet few have a succession plan in place. Here’s what you need to know about the six to 12 months leading up to inking a deal with a buyer of your practice
Advisors who did everything right in succession planning – starting early and grooming a successor — can be side-swiped by unpreventable events. The best advice is to be prepared and expect the unexpected
There are several options for winding down your practice, from simply working until you are ready to retire to selling your practice or partnering with another advisor to plan an orderly exit. There’s no “one size fits all” solution
A series of calculations will help you arrive at a credible number with which to begin your negotiations. Whether the practice sells for that price depends on the buyer’s and the seller’s determination to make a deal
When it comes to selling a financial advisory practice, the traditional definition of fair market value does not apply. Intangible assets such as goodwill and future earning potential come into play
It might be flattering to get an out-of-the-blue offer to purchase your practice. But before deciding whether to begin serious negotiations, here are several factors to consider. Remember, price is not the sole issue
Several factors, both internal and external, will determine when you should sell your practice. To help ensure you make the right decision, you must ask yourself some key questions
The decision to make your exit now or wait five years isn’t binary. Many variables could affect the outcome of your choice
An advisor’s 55th birthday and 25th anniversary in the business inspires questions about the development of a succession plan. The best advice combines the benefits of early planning with the reality of life
| # of copies | Discount |
|---|---|
| 10 – 19 | 5% |
| 20 – 49 | 10% |
| 50 – 99 | 15% |
| 100 – 199 | 20% |
| 200 – 499 | 25% |
| 500 – 999 | 30% |
| 1000+ | 35% |
