24 Soft Succession Planning Issues That Will Make The 7 Hard Succession Planning Issues 2 X Harder If Not Addressed

Soft Succession Issues

Practice Valuation – What makes the practice worth more or less?

1. Business Plan to include Vision, Mission, Objectives, Strategies and Actions
2. Computer systems
3. Time management plan
4. Information management system
5. Policies, procedures and practices
6. Employee job descriptions and rolls, entrance and exit interviews
7. Quarterly review process with employees
8. Associate advisors that specialize in life insurance and money
9. Support staff that specializes in the life insurance and money
10. Client engagement process that includes needs analysis and cross selling
11. Client relationship management system
12. Client segmentation complete with scheduled review meetings for A, B and C clients
13. Marketing plan
14. Website
15. Social media presence on LinkedIn
16. Monthly newsletter
17. Referral system
18. Seminar marketing system

Issues / Landmines

1. Why have a Succession Plan?
2. Exit strategy timeline
3. Selecting the successor
4. What are your values, behaviors, competencies, skills? Values are why you do what you do and behaviors are how you do what you do. An advisor will likely attract clients that have similar values and behaviors to their own so the successor will likely require the same values and behaviors in kind.
5. Conflict resolution plan
6. Keeping clients through the succession

Hard Succession Issues

1. Valuation
2. Financial plan
3. Tax implications
4. Contingency plan to ensure survival of the business in case of illness, accidents and that
5. Corporate structure and transfer methods
6. Business valuation
7. Inventory