Yes, Mr./Ms. Advisor, just one more question. What is your succession plan?

How many of you have had this scenario come up recently?  You’re humming along with a referral, you guys are clicking, you can feel it, they’re going to be a great new client.  Then, it happens.  You ask “do you have any more questions”?  And they say, “yes, just one more.  What happens to us if something happens to you?”

You gulp, stare blankly, stutter a few times and then say something about “unplanned transitions, my attorney, possibly another advisor” but since you have no concrete succession plan in place, you don’t really have a good answer.

This is a wake up call/reminder. Today’s investors are saavy folks.  They know the right questions to ask.   They’ve visited all the websites that have provided them list upon list of questions to ask.

Get a written succession plan in place even if it’s temporary.  Find another advisor who has a similar investment philosophy/client style as yours and get a legal agreement on paper.  If FP Transitions is your route, make sure you pay the membership fee with them and get a plan in place, even if it’s an unplanned transition, make sure it’s going to be with someone similar to you.  If it’s potentially someone internally, get it in writing.  How much will they pay, etc. 

Don’t be cheap here.  It’s too important to your firm, your clients and your family.  After all, this is more than likely one of your largest assets.  Why would you leave this to chance?

Call me or email me with any questions.

Thanks!

It’s time for a reminder as to why we’re doing this…

We’ve all heard alot about having an ideal client profile, how important it is to identify who we want to work with, etc. and just for the record, I totally agree with the importance of this.

However, I have to be honest here…I didn’t really GET it fully until I started my own business.  Trust me, now I GET IT!

For me, it has so little to do with the money (now, don’t get me wrong, I’m in this to make a decent living) and has so much more to do with “do they value my services, are they ready to make some changes, do they understand that we will be ‘partnering’ in taking their firm to the next level.”

I admit, I’ve made some mistakes.  I’ve accepted some engagements despite the fact that my gut was screaming “you must be kidding…they’re not even close to your ideal client” and you know, without fail, the engagements do not end up being as successful as they could have been.

I accept the blame in it’s entirety for this.  By not keeping to my #1 edict, that I’m building this business to help other advisors improve their business and their quality of life AND I’m building this business to improve the quallity of life for myself and my husband, I got myself into trouble.

When you’re building your ideal client profile, don’t make it all about the money.  Put a client minimum in there and a niche if applicable and then the make the rest of it about working with folks that you can reallly help, folks that value your advice, that value advice from professionals, that are delegators and have better things to do than watch the stock market and it’s crazy ups and downs.  Make it about the quality of life you’re building for yourself and your family.  After all, isn’t this why you went on your own (whether you’re an RIA or with a B/D, it’s still your firm, they;’re your clients).

Sorry for the rant today…I just thought it would be a good reminder for all of us as to why we’re doing this in the first place.  It’s very easy to lose sight of.

Take care and call me with any questions or comments.

Is growth always the right thing?

Recently, I met with an advisor who is not a client of mine and we started discussing the possibility of us working together.  She spent some time giving me some very good background information and the fact she wants to grow the business and as we continued our discussion, she looked at me and said “what do you think I need”?  What she was asking me here was do I need a junior planner or more administrative help, etc.

During our discussions, she told me that she uses a very active management system and that she really loves it.  She loves the rebalancing and the intricacies of it as well.  She has two really good admin folks who handle the billing, portfolio reporting, etc.  Also during our discussions, I came to realize she would have difficulty releasing some if not most of the background work to someone other than herself. 

So, when it came time to answer the question of what I thought she might need for her firm, I really couldn’t answer her and I told her so.  I told that I couldn’t help her until I knew which part of the business really lit her up in the morning (is it the growing of the business or the money management) and would she be able to let go of things so she could be out more speaking to prospects.

I told her before she moved ahead, whether it be with or without me, I suggest she identify what she loves and list 10 things she can delelgate that aren’t already delegated and still sleep at night.  The answers to those questions will shape the future direction she takes.  If she really does love the money managment more (this system is so hands on she cannot meet with folks until after 3:00 p.m. CDT when the market closes) or is it the growing of the business and serving her clients on a more macro level that she wants to do.  Additionally, if she can’t name 10 things she could delegate right now that wouldn’t make her a nervous wreck, in my opinion, she’s right where she needs to be.

She’s a built a very nice size business right where she is and by thinking about these two questions, she might just figure out she’s happy where she is and can shake off the peer pressure we all feel to constantly be in a growth mode.

I’d like to hear your thoughts. Thanks!

It’s 99% about the culture…

Recently, I have had a few young planners call me and want to talk about the firms they are currently working for.  Do they tell me they’re not being paid enough?  No.  Do they tell me they don’t have good benefits? No.  Do they tell me the firm doesn’t invest in the best technology or nicest offices?  Nope, not that either.

What are they so anxious to talk about?  The CULTURE of the firm.  Yes, that’s right.  The 20-something and 30-something generation is not all about the money.  They are about a relaxed culture that offers them some flexibility, positive feedback, some input in the decision making process and the ability to do some things their way.

What’s wrong with this?  Nothing, I say.  For the most part, they’re smart, motivated and eager to learn from you.  However, what they don’t want and frankly, probably won’t put up with for long is you standing over their shoulder trying to turn them into “younger versions of you”. 

I’ve said it before and I’ll probably have to say it many more times…Hire the best, pay them well, have an incentive program and career track in place and then for Pete’s sake, get out of the way.  Your job is to be building the firm, meeting with prospects and strategic alliances.  If you hire these folks and then don’t trust them to do the job in a culture that fits them, seriously, what is the point?  You’re just paying folks so you can have someone to micromanage.  That my friend, is an expensive hobby!

Give me a call if I can assist you with building a great culture your employees will want to stay in forever or with any other challenges you might be facing.

Are you a micromanager? If so, you could be endangering your firm!

Are you a micromanager?  Ask yourself these questions:

1.  In order to get something done right, do you feel like you have to do it yourself?

2.  Do you do the work you hired others to do?

3.  Do you do routine tasks instead of letting others do them?

4.  Are you too busy doing today’s work to plan for the future of the firm?

5.  Does every small purchase have to go through you?

6.  Do you worry about taking vacation because “nothing will be handled correctly in my absence”.

If ANY of these symptoms describe you, you are probably a micromanager. 

In a small business, you can transition to being a micromanager without even realizing it. After all, in the beginning you HAD to do everything.  You were the only one available to get it done. It can be very difficult for an entrepreneur to transition from being a sole-practioner to a delegator.

If you’re not comfortable delegating and giving up your micromanagement tendencies, it’s probably due to one of the following:

1.  You have not hired the RIGHT folks.  You certainly tried and meant to but something in your gut is telling you they may not be the right folks to enable you to get that feeling of trust you need to turn over these tasks.

2.  You do not have policies and procedures in place.

3.  You do not have a strategic plan in place.

If you have just identified yourself as a micromanager and can answer yes to any of the above 3 questions, GET HELP NOW.  You are endangering your practice and in all likelihood, stifling future growth.  No amount of new employees, technology or outsource partners will fix this.  It must start from within.

Please give me a call if I can assist you in this endeavor.