How will you leave the firm you started? Your exit can come about as a result of a planned event, such as you creating and following a succession plan, or unplanned event such sickness (yours, a spouse, or family member can highly affect you and your business) or death. As a business owner and advisor, it’s important to plan for both.
A new study released by the FPA and Janus Henderson reveals that 60% of advisors, who are within five years of retirement, have no plan. It’s the story of the shoemaker whose children need their shoes fixed.
If you are part of the 40% of advisors who have a plan, make sure it has compliance approval. That might mean, if you’re independent that you pay for a once over of your plan. Better now, then have problems later.
Let’s face it. None of us wants to do this work. We’d like to live forever. But reality dictates differently.
For better or worse, for richer or poorer, plan for your future.
Below are some questions to answer to help you get started with a succession plan .
Your Exit – 11 Questions To Consider
Your Exit – What Will Yours Look Like
There are two separate parts to planning for your retirement. One is to plan what you’d like to happen, the other is to look at worst case scenarios.
What I find most often are clients who create a 2-tier or sometimes creating a 3-tier exit. Often slowing down or speeding up growth for “x” years, then retiring.
The first few events on the list below are about worst case scenarios. We seem to read more stories about people having no plan, and the consequences on their families, business, and team. As advisors someone, like a spouse or friend, can’t just come in and take over the business. There are regulations that need to be followed.
That’s why putting your plans in writing are so important.
Plus when you have a plan you’re better able to empathize more with YOUR clients as you talk as you talk about planning for the future. At least I found this to be true for me after I created my first business plan.
19 Ways To Exit Your Business
Plan for the future of your business, be it the next 12 months, or 20 years. Sure the plan may change. But you’ll be protecting yourself, your business, and your family by putting it all in writing.