In this Roundtable Talk, the next-generation ownership of FP Transitions discuss their own experiences in taking the mantle to shape the team and future of the business. They explore hiring for cultural fit and potential value, the definition of “ownership mentality,” and how they might identify potential G3 leaders in the generation beyond their own.
Watch a short clip below and click here to watch the full, unscripted discussion.
Topics: Succession Planning, Next Generation, Talent Recruitment, Enterprise
In the October 2019 issue of the Journal of Financial Planning, FP Transitions' Christine Sjölin, VP of Strategic Development and Operations, contributed her article "Lay the Foundation for the Next Generation of Ownership." The article discusses the importance–and challenge–of seeking out and recruiting next-generation talent in the financial services industry. Christine explores implementing internship opportunities to recruiting new advisors, strategies for talent retention, and how to incorporate ownership opportunities into your compensation structure.
Read her full article, "Lay the Foundation for the Next Generation of Ownership," now at onefpa.org
Topics: Succession Planning, FPT in the News, FPA, Next Generation, Talent Recruitment, Sustainability, Journal of Financial Planning
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We all know what an entrepreneur is. Many independent financial advisors would likely identify themselves as an entrepreneur.
Many entrepreneurs worked 18-hour days to get their business off the ground and wore all the hats in the company–CEO, Marketing Director, H.R. Manager, IT Coordinator, Bookkeeper, and Visionary. They are their own boss. They create new things. They continuously solve problems. They have initiative. And, importantly, they can tolerate risk more than most people.
A lesser-known term is "intrapreneur."
Topics: Succession Planning, Business Growth, Next Generation, Sustainability, Enterprise
When should you start developing your exit plan or succession plan?
The short answer is: start the planning process early. Successful internal succession planning can be a 10- to 15-year process so give yourself adequate time. For advisors who want to sell externally, the planning process should start three to five years before you think you’re ready to actually sell.
Projecting an Off Ramp
As you forecast your exit timeline it’s important to consider factors like cash flow and how much will be required to move into retirement and maintain your desired lifestyle. You should also consider how long it will take to put your successor team in place and when you’ll be able to hand over the reins completely.
One of the best ways to make a timeline projection is to determine how much time you want to—or will realistically be able to—spend productively working in the office, and create a “workweek trajectory.”
Topics: Succession Planning, Selling Your Practice, Business Growth, FP Transitions, Sustainability, Enterprise, Sell and Stay™
We write a fair number of white papers every year. As thought leaders, it is part of our job to share our thinking with independent financial professionals in order to advance the profession. In our consulting work, our clients often challenge us with thought provoking questions which open us to new ideas, help us to improve, and occasionally challenge basic assumptions behind the work that we perform. Sometimes questions are really out of left field and our curiosity leads us to an answer worth sharing.
Topics: Succession Planning, Business Growth, FP Transitions, Sustainability, Enterprise
Ahead of FA's 2020 Invest in Women's Conference in April 2020, Michaela G. Herlihy shares important insight and actionable advice for making the transition from employee to owner. She covers identifying and Implementing proper policies and procedures, creating a business plan, leveraging a skilled team of professionals, incorporating your key employees in strategic planning, and the importance of having a plan for the transition (that's where we come in).
Read the full article, "Roadmap to an Internal Succession Plan," at FA Magazine.
Topics: Succession Planning, FPT in the News, Next Generation, Sustainability, FA Magazine
As a next-generation advisor, pursuing ownership as part of your career path is an important decision. Business ownership requires a variety of skill sets and comes with both benefits and responsibilities that go beyond the role of advisor. Before you consider asking for ownership from the existing owners of your firm, you need to demonstrate that it is not only something you are capable of, but something you have earned.
Starting with these four steps as early as possible will help you build a strong case for ownership:
Topics: Succession Planning, Multi-Generational Ownership, Next Generation, Sustainability
In our newest Roundtable Talk, Elite Client Consultant Kem Taylor and President David Grau Sr., JD, discuss the importance of time when it comes to planning, executing, and evolving your succession plan. During the conversation they cover examples of how FP Transitions has helped business owners navigate any changes to their plan including accelerating the timeline, adjusting the next-generation ownership team, and falling back to “Plan B”–selling the business.
Watch a short clip below and click here to watch the full, unscripted discussion.
Topics: Succession Planning, Next Generation, Talent Recruitment, Enterprise
The growth and profitability of your business are interconnected. Top-line revenue growth is essential, but it is no good without bottom-line profitability.
Balancing growth and profitability comes down to compensation structure and the equity pathways created for owners of the business. The profits generated through properly structured equity pathways are a catalyst for growth and the means to accomplish long-term strategic objectives including recruiting new talent, internal succession, and acquisition.
In our newest webcast, VP of Research and Analysis Eric Leeper, CFA®, discusses compensation solutions for businesses in varying stages of growth and how these strategies can boost both top-line growth and bottom-line profitability.
View webcast clip below and click here to watch the full video.
Topics: Compensation, Succession Planning, Equity Pathways, Enterprise
Over the last ten years, increasing numbers of advisors have begun the process of creating sustainable businesses. Many advisors started out as a book or a practice—one-generational models. They took steps to create much more valuable, multi-generational businesses by focusing on enterprise strength and setting up or restructuring essential business structures.
The M&A marketplace is becoming increasingly competitive. Businesses need a strong value proposition to step away from the crowd. Owners who have taken steps to work on building their enterprises are in the best position to leverage their unique business aspects to access more growth opportunities and become successful acquirers or merger partners.
Topics: Succession Planning, Multi-Generational Ownership, Organizational Structure, Business Growth, M&A, Sustainability