The #1 Reason Advisors Should Create an Exit Plan

Your clients and future clients want you to have an exit plan.

None of us can guarantee that we’ll be here tomorrow.

None of us can guarantee that our business will be here or that “mother nature” won’t destroy our firms.

Because I work with advisors , individuals always ask me for tips and recommendations on hiring an advisor. During many conversations, they’ll often tell me that they’re afraid to hire a solo-owner or small firms, mostly because of continuity issues.

When you work for a firm and leave, chances are that clients will become their clients. (Hopefully, until they find you). If you were to die tomorrow, someone at the firm will help them. So succession isn’t a top of mind question for your clients. They know that someone will take care of them.

When you own your firm, your clients wonder what would happen if something happened to you. This is more “top of mind” if you’re a small company. It’s often the elephant in the room. (Hint: It’s up to you to have that conversation with them and give them your succession plan!).

So if you don’t have a succession plan because you’re too busy, it isn’t important, you’re too young, or your part of the financial industry doesn’t force you to have one via regulation, think again. A succession plan is one of the essential pieces of a solid and comprehensive business foundation. Create a succession plan because your clients want you to have it! (even if they don’t say it)

Related: Simple Ways To Build Trust With New Clients

There is nothing more important than your client’s or prospect’s peace of mind…

Consider your clients and create one in February. If nothing else, start the exit plan process by creating a vision of how you’ll be ending your business and how your clients will seamlessly be taken care of.