Business Succession Planning For Financial Advisors

Author : George Hartman
Publisher :
ISBN 13 :
Total Pages : 230 pages
Book Rating : 4.6/5 (646 download)

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Download or read book Exit is NOT a Four Letter Word (Financial Advisor Edition) written by George Hartman and published by . This book was released on 2020-11-11 with total page 230 pages. Available in PDF, EPUB and Kindle. Book excerpt: We have all heard the warnings - the average age of advisors is mid-to-late fifties; half of the advisor population will reach retirement age within the next ten years; only one in ten advisors have a written succession plan; there are an insufficient number of new advisors to replace those who will die, become disabled, or retire.Yet it is only in the past ten years that we have really even begun to acknowledge these issues. Up until then, financial advisory practices either faded away with their founders or had their clients scattered among other advisors who may or may not have wanted to accept them. That was not so great for an industry that staked its value proposition on helping people plan for and manage their future well-being. Today, large, well-run, high-profile practices trade hands among like-minded advisors for millions of dollars. I am not worried about them. My concern is with the hundreds of thousands of advisors who have the majority of their personal wealth tied up in their small-to-medium sized practices. Moreover, they are counting on those businesses to fund their own retirement lifestyle. Many will be tragically disappointed because they waited too long, planned too little, and assumed too much. But it doesn't have to be that way. The process of transitioning a financial advisory practice from one advisor to another is relatively straightforward and follows the same path advisors use to counsel clients - create a vision for the future, conduct a reality check on the situation today, and draw a map to take you from where you are to where you want to go.I have been coaching financial advisors for more than 30 years, and they have taught me a lot. In addition to all the practice management insights, one of the most valuable lessons I have learned is that, given sound reasoning and a logical methodology, serious financial advisors will make a focused effort to change their habits and their businesses for the better. So that is what this book attempts to do - provide the rationale and the routine to motivate you to prepare for the eventual transition of your business to the most qualified successor. I am not trying to encourage you to retire - just to get ready for the day when it makes sense to you to exit your practice. The result will be continued service to clients who trust you, greater value to you for your life's work, and greater certainty about the industry's future.Succession planning is not an event - it is a journey. To help us along the way, I have re-introduced Henry, the central character from my book Blunder, Wonder, Thunder - Powering Your Practice to New Heights. We first worked with Henry several years ago when his practice had reached a plateau. Having broken through that ceiling and built his business to an enviable position, we will now follow Henry through various coaching conversations with me as he writes and directs the final act in the story of his life's work. Henry is not a real-life advisor; he is an amalgam of many with whom I have worked. However, all the conversations played out in this book have actually happened in coaching sessions with hundreds of advisors.The truth of the matter is that you will leave your business someday. The question is, will you be in control of your exit, or will you allow fate and circumstance to dictate what happens to the business you have spent so much of your life building?Come join Henry and me. I think you will enjoy the journey!