“If you know the ‘why’ of a thing, then the ‘what’ and the ‘how’ become clearer to see and easier to do.”
Business continuity planning is in the best interest of the producer, his or her clients, the public, the industry and society in general. This planning provides many new opportunities for you, including but not limited to:
- Grow client base or AUM. Expand your clientele and revenue possibilities by looking beyond your practice to purchase another practice or merely a partial book of clients.
- Generate new business. Through acquisition, your practice can expand its reach and broaden the opportunities that are possible with your clients and partners.
- Expand service offerings. Perhaps you will gain clients who require you to expand your or your team’s capabilities. Perhaps you will bring on new staff to meet the needs of your clientele. In either situation, more services can facilitate more business with more people.
- Specialize. Can another practice help establish your business as the go-to experts for a particular clientele? Changing the nature of your practice can help you zero in on your specialty and the ideal clients you can help.
- Reduce client base. Needless to say, you never want to leave your clients in need without anyone to help them. If you are considering a change in your practice such as retirement or a reduction in work, a merger or sale can do that — and requires considerable planning to ensure the proper transition.
- Prepare for retirement. This process doesn’t happen overnight. Through the proper preparation, you can ensure that you are passing your practice and your clients to the right person or people.
- Find economies of scale. By merging your practice with another or purchasing a book of clients, you may be able to increase your production at a lower cost due to changes in staff, more efficiency in who you work with or otherwise.
- Refocus your role. The only way to change your responsibilities is to make a change in your practice. That could mean beginning the transition of moving leadership tasks to your successor or merging with a practice where you will remain working but adjust your role.
Continue to: Define your objectives
Go back to home page: Business Continuity Decision Tree
