Even Financial Advisors Need a Succession Plan

Most business owners are so busy with the day to day or even their one-year plan that it’s easy to overlook what happens to the company if they’re no longer actively working in it.

But that succession plan could become a matter of top priority very suddenly due to an illness, disability, divorce, or death. A succession plan enables key employees and family members to understand their options and to take action quickly when needed.

Any business owner needs to have a succession plan that will protect them and their other employees in the event that they decide to leave the business or have to leave unexpectedly. Financial advisors are a category of people who are most likely to know that they need a succession plan but can ignore it. It is worth thinking about your business succession plan at least 10 years before you expect a new leader to take over.

This allows you to do a full analysis and valuation of the business but also to understand what other talent you might need to bring in. It is possible that you have other employees on staff who may be able to step into these leadership roles, but it should not be expected that they will stay permanently or that they are interested in such a position.

This is because many people change careers more frequently and might depart your firm before you even get the chance to start training them. In the event that you need to seek outside help as part of your financial advisor business succession plan, you’ll want to tap these people early and provide them with ample training opportunities.

For smaller financial investment firms, one opportunity is to partner up with an operation of similar size and create reciprocal agreements. So many financial advisors are focused on generating business immediately in front of them but if you intend to have a firm that lasts long beyond the working life of the creator, you need to think about a business succession plan. This should come with the help of an experienced business succession plan lawyer in Pasadena.




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