An advisor has a successful practice and has hired employees to help them run the firm. They have hired key employees to help with client service, planning and performance management. The advisor has done so with a contingency and succession plan, life insurance, and an estate plan. So what are they missing?
Who is going to be the face of the firm, if and when you are gone. You are paying employees on a salary, some may be growing in to their role, but how are they going to fund an eventual buy-out? And can they be the person or people that eventually bring in all of the new assets and hunt for additional business opportunity the way you have as a founder?
Many firms have become proficient at hiring key staff people to service and a model that, because the founder is involved, generate plenty of good referrals for growth. The failure in these instances is replacing oneself with someone that can be that leader, desire excelling growth instead of just steady growth, and has the ability or the intestinal fortitude to take on some risk by acquiring your business with a loan.
The article link from above highlights a very good planner and business owner that is missing the key ingredient, the next generation leader. I had a meeting last week of another such firm. These examples keep coming up.
My Generational Partner consulting process involves partnering successful advisors with next generation leaders that can accept the risks and rewards that go with being the lead owner of a business. It is necessary for client continuity, long-term success of the firm, and if desired, the eventual buy-out of a business.