Advisor Today - November/December 2016 - 13

PRACTICE SPECIALTIES

MANAGING YOUR PRACTICE
By Bryce Sanders

I Love My Job, But I Don't Want to Do it Forever!
Before you make your move, gradually transition your clients to another advisor or they might take their
business elsewhere.

N

ot everyone wants to leave their
business feet first, carried out of
the office on a stretcher with a
phone in their hand. You might want
to spend the next stage of your life
traveling the world. The practice you
have built over the years has value,
and you have a responsibility to your
clients. So what do you do?
Meanwhile, many clients have
their own succession plans. They see
themselves as "your clients," but when
you are no longer in the picture, they
move to a free-agent status and are
ready to take their business elsewhere.
Often, they have met another advisor
socially and his company is their next
port of call.
Here are a few options to consider
when thinking of succession planning
for your business:
Bring in the next generation.
Transition the business to your children.
This takes time and often involves
addressing commitment and respect
issues. For example, your kids just can't
turn up one day and occupy your office.
They need to get licensed and learn
the business. Others in your office may
not take them seriously until they have
paid their dues. The major advantage
is how your clients see the transition. If
they are business owners themselves,
handing the business to the next
generation probably makes lots of sense.
Take on a partner. This strategy
is very similar to selling your book of
business. You identify another agent or
advisor at your firm whom you think
would be a good fit. You complete
the paperwork required. Initially,
your books are kept separately, but
new accounts opened from that point
forward go into a Joint Production
Number. Gradually, both books are
combined. You receive a percentage of
the total revenue, and this percentage
declines over time as you transition
out of the practice. This takes a couple

Business
succession
occurs over
time - fulltime work
becomes semiretirement,
and eventually
semi-retirement
evolves into full
retirement.
of years. Clients like this approach
because you are still in the picture.
Form a team. Forming a team
is another long-term approach to
transitioning out of your business. You
bring on a couple of newer agents or
advisors who start by focusing on new
business development (prospecting).
They also work your "B" and "C"
books. You teach them the business
and your clients gradually become
comfortable with working with them.
You then gradually make the transition,
similar to the partner example
described earlier. You are in the role
of senior partner, collecting the lion's
share of the revenue. The disadvantage
is the initial added cost. You need to
pay these junior team members as they
come up to speed. Hopefully, their
work on prospecting and deepening
smaller account relationships pays off.
Promote your sales assistant.
In reality, you already have a team.
Someone answers your phone when
you are busy or visiting clients and
prospects. Your clients are very
comfortable with that person because
he is the first point of contact. Your
assistant knows the business and
understands the products and services
you offer. In reality, he could do your
job. So why not give him a chance?
This involves making sure he has the

required licenses and transitioning
him into an "associate" role. He
gradually moves into performing more
client-facing activities as the number of
hours you spend in the office decreases,
and you hire another sales assistant to
replace him. This approach has several
advantages. Your current assistant is
probably great at everything except
prospecting, since finding new business
is a major part of your job. You also
incur additional expenses when you hire
a new assistant.
In each of these examples, you ease the
transition for your client while continuing
to provide great service. Notice that the
entire process occurs over time -
full-time work becomes semi-retirement,
and eventually semi-retirement evolves
into full retirement.
You might not consider any of these
examples - you might just want to sell
your book of business to a stranger, walk
away and never look back. But keep in
mind that when there's no effort made
at gently transitioning clients to another
advisor, the chances of their taking their
business elsewhere greatly increase.
Bryce Sanders is president of Perceptive
Business Solutions Inc. He provides HNW
client acquisition training for the financial
services industry. His book, "Captivating the
Wealthy Investor," is available on Amazon.

November/December 2016 | ADVISOR TODAY 13



Advisor Today - November/December 2016

Table of Contents for the Digital Edition of Advisor Today - November/December 2016

FROM THE EDITOR
VIEWPOINT
NEW PRODUCTS
I Love My Job, But I Don’t Want to Do it Forever!
Building a Practice You Love
The New American Dream
A New View of Retirement
College Education Funding: Helping Clients Evaluate What’s Best
Portfolio Allocations for New Market Conditions
Leveraging the Power of Study Groups
An Interview with MassMutual’s James Ocampo on Critical Illness Insurance
Start with “Why”
Best Practices for Selling Group LTCI
From Yes to Success
Meet NAIFA’s New President
NAIFA’s 2016 Performance + Purpose Conference
NAIFA GOVERNMENT RELATIONS
4 Ways to Build an Effective Email Marketing System
ADVERTISER INDEX
BACK PAGE
Advisor Today - November/December 2016 - cover1
Advisor Today - November/December 2016 - cover2
Advisor Today - November/December 2016 - 1
Advisor Today - November/December 2016 - 2
Advisor Today - November/December 2016 - 3
Advisor Today - November/December 2016 - 4
Advisor Today - November/December 2016 - 5
Advisor Today - November/December 2016 - 6
Advisor Today - November/December 2016 - 7
Advisor Today - November/December 2016 - FROM THE EDITOR
Advisor Today - November/December 2016 - 9
Advisor Today - November/December 2016 - VIEWPOINT
Advisor Today - November/December 2016 - NEW PRODUCTS
Advisor Today - November/December 2016 - 12
Advisor Today - November/December 2016 - I Love My Job, But I Don’t Want to Do it Forever!
Advisor Today - November/December 2016 - Building a Practice You Love
Advisor Today - November/December 2016 - The New American Dream
Advisor Today - November/December 2016 - A New View of Retirement
Advisor Today - November/December 2016 - College Education Funding: Helping Clients Evaluate What’s Best
Advisor Today - November/December 2016 - 18
Advisor Today - November/December 2016 - Portfolio Allocations for New Market Conditions
Advisor Today - November/December 2016 - 20
Advisor Today - November/December 2016 - Leveraging the Power of Study Groups
Advisor Today - November/December 2016 - 22
Advisor Today - November/December 2016 - 23
Advisor Today - November/December 2016 - An Interview with MassMutual’s James Ocampo on Critical Illness Insurance
Advisor Today - November/December 2016 - 25
Advisor Today - November/December 2016 - Start with “Why”
Advisor Today - November/December 2016 - 27
Advisor Today - November/December 2016 - Best Practices for Selling Group LTCI
Advisor Today - November/December 2016 - 29
Advisor Today - November/December 2016 - From Yes to Success
Advisor Today - November/December 2016 - 31
Advisor Today - November/December 2016 - Meet NAIFA’s New President
Advisor Today - November/December 2016 - 33
Advisor Today - November/December 2016 - 34
Advisor Today - November/December 2016 - 35
Advisor Today - November/December 2016 - 36
Advisor Today - November/December 2016 - 37
Advisor Today - November/December 2016 - NAIFA’s 2016 Performance + Purpose Conference
Advisor Today - November/December 2016 - 39
Advisor Today - November/December 2016 - 40
Advisor Today - November/December 2016 - 41
Advisor Today - November/December 2016 - 42
Advisor Today - November/December 2016 - 43
Advisor Today - November/December 2016 - 44
Advisor Today - November/December 2016 - NAIFA GOVERNMENT RELATIONS
Advisor Today - November/December 2016 - 4 Ways to Build an Effective Email Marketing System
Advisor Today - November/December 2016 - ADVERTISER INDEX
Advisor Today - November/December 2016 - BACK PAGE
Advisor Today - November/December 2016 - cover3
Advisor Today - November/December 2016 - cover4
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