Disclosing Litigation During a Business Sale: What RIA Owners Should Know
Financially Simple Bizcast
Owning a business is a risky endeavor. This is especially true in the RIA space which is heavily regulated. From civil actions to punitive actions taken by regulating bodies, litigation can be damaging to your business and reputation. So, what should you do if you find yourself facing litigation during your eight-figure exit? In this episode, I look at some of the measures you can take to mitigate the risk of litigation. Additionally, I discuss ways to disclose pending, past, or present litigation to prospective buyers so that you could still make the ultimate sale. Whether you’re a...
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Risk Mitigation for the RIA Owner
Financially Simple Bizcast
In this episode, I’m discussing risk mitigation. More specifically, I’m going to look at the insurance coverages you need to have as an RIA owner. Now, I know insurance may not be the most fun topic, but it is important and it could significantly impact the value of your business. So, don’t tune out! I’ll be covering increases to your required coverages and the core coverages you should have. However, I’ll also discuss how your firm’s legal entity could work to mitigate potential risks to you, as the owner. Finally, I’ll explain how each of these components can affect your...
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Marketing & Sales Synergy to drive your RIA's growth
Financially Simple Bizcast
As a financial advisor, it can be easy to forget that sales and marketing are part of what we do. We understand that we have to attract new clients in order to grow our book of business. However, we may not always realize that we’re selling our firm and our services when we engage in an initial “getting to know you” phone call. The truth is, as RIA owners (and business owners in general), we don’t always see ourselves as salespeople. Likewise, we don’t always have a strong grasp of how marketing and sales work together to drive revenue growth. In this episode, I’m taking a...
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What your Sales projections can tell you about your RIA's health
Financially Simple Bizcast
Sales projections are important to your organization’s goal identification and planning. But have you ever considered what your sales projections can tell you about the health of your Registered Investment Adviser (RIA) firm? In this episode, I discuss the significance of the data that informs your sales projections. Likewise, I explore how you can use your sales projections to measure your firm’s performance against industry benchmarks, determine future hiring needs, and more! This week on The Financially Simple Podcast: (01:35) How your sales projections can help you ...
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The power of No in your Practice
Financially Simple Bizcast
In the early stages of your Registered Investment Adviser (RIA) firm, it made sense to work with anyone who could fog a mirror. But as your firm grows, many of the clients that you served in the beginning may not offer your business the same value they once did. As a result, these clients can chip away at your firm’s efficiencies, preventing you from gaining ground on your journey toward the eight-figure exit. In this episode, I discuss the power of saying, “No” to clients who are the wrong fit for your RIA. This tiny word is one that, as business owners, we don’t often like to say....
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Fire yourself as the lead producer in your business Pt 2
Financially Simple Bizcast
If you’re working toward the eight-figure exit, you can no longer be the top producer in your firm. This means “firing” yourself. But how can you step away if doing so will cause a decline in your sales production? In the previous episode, I gave you some homework. After digging into your firm’s data points, did your company align with the industry averages? Were you surprised by what you found? In this episode, I’m picking up where I left off, and giving you four tools to help you create scalable and repeatable sales processes that enable you to fire yourself so you can achieve the...
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Fire yourself from being the Lead Producer in your RIA Pt 1
Financially Simple Bizcast
Sales is the lifeblood of every business. In order to grow, you must attract new clients and gain new revenue. As the owner of your RIA, you’re likely the top producer in your firm. However, this is anathema to the eight-figure exit. In this episode, I discuss why you must fire yourself, making way for new top producers to emerge. In doing so, you can decentralize and reduce your company-specific risk. I’ll explain the metrics you need to monitor to ensure continuity once you’re no longer pulling all the levers. Likewise, I look at how firing yourself could enable you to meet or...
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10 Steps for Designing an Employee Incentive Program to Fuel the 8-Figure Exit
Financially Simple Bizcast
Over the past few years, business owners have been through the wringer. From lockdowns to the Great Resignation, simply going to work has presented a much larger challenge than it did in the past. As a result, attracting and retaining great talent has become more important than ever. So how can you achieve this in your RIA? In this episode, I talk about the importance of employee incentive programs and the many different ways to show your team that you appreciate their loyalty and hard work. Likewise, I discuss 10 steps you can take to design and implement an employee incentive program to fuel...
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Reducing Compliance Risk through Operational Processes
Financially Simple Bizcast
For many of us, compliance can seem like a dirty word. Too often, this necessary aspect of your RIA is seen as “anti-sales” or as being against advisors. However, compliance plays a vital role in protecting you and your clients. So, how can you develop a compliance department that is both effective and efficient? In today’s episode, I discuss how you can integrate compliance practices with your daily operations. Additionally, I will look at the risks associated with non-compliance. Finally, I will provide practical tips for creating tools that can eliminate compliance bottlenecks and...
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Driving Profitability through your RIA's Governing Documents
Financially Simple Bizcast
Have you ever considered that you could drive greater profitability in your RIA (or any other business) through policies and procedures? Think about it... Your firm's governing documents such as the employee handbook, compliance manual, or company policy are meant to communicate policies and contingencies that can reduce risk and drive efficiency. In today's episode, I'm going to discuss these important documents. As I do, I will explain which documents you should have in your RIA, and what types of information goes into each one. Finally, I will explain how well-kept governing...
info_outlineIn episode 294 of Financially Simple, Justin explains the concept of the Wealth Gap.
All Small Business Owners plan to retire one day, sell their business, and enjoy their hard-earned wealth - but will you have enough to cover the expenses of the lifestyle you want for your retirement. In this episode, Justin defines the Wealth Gap, outlines the basics of its calculation, and how to reduce it.
Don’t forget to subscribe, and let us know how we are doing by leaving a review. Thanks for listening!
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TIME INDEX:
00:48 - The Wealth Gap
03:12 - Where to Begin: Valuing Your Assets
06:28 - Know Where You Are Going
09:19 - Taxes
11:06 - Calculating the Wealth Gap
13:12 - Closing the Wealth Gap
16:24 - Your Number One Asset
18:25 - Summary
RESOURCES:
Financially Simple Educational Website
Subscribe to the Financially Simple Newsletter
NEW Book: The Ultimate Sale - A Financially Simple Guide to Selling Your Business for Maximum Profit
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BIO:
Justin A. Goodbread, CFP®, CEPA, CVGA, is a nationally recognized financial planner, business educator, wealth manager, author, speaker, and entrepreneur. He has 20+ years of experience teaching small business owners how to start, buy, grow, and sell businesses. He is a multi-year recipient of the Investopedia Top 100 Advisor and 2018 Exit Planning Institute’s Exit Planner Leader of the Year.
DISCLOSURES:
This podcast is distributed for informational purposes only. Statements made in the podcast are not to be construed as personalized investment or financial planning advice, may not be suitable for everyone, and should not be considered a solicitation to engage in any particular investment or planning strategy. Listeners should conduct their own review and exercise judgment or consult with their own professional financial advisor to see how the information contained in this podcast may apply to their own individual circumstances. All investing involves the risk of loss, including the possible loss of principal. Past performance does not guarantee future results and nothing in this podcast should be construed as a guarantee of any specific outcome or profit. All market indices discussed are unmanaged, do not incur management fees, costs and expenses, and cannot be invested into directly. Investment advisory services offered by WealthSource Partners, LLC. Neither WealthSource Partners, LLC nor its representatives provide legal or accounting advice. The content of this podcast represents the views and opinions of Justin Goodbread and/or the podcast’s guests and do not necessarily represent the views and/or opinions of WealthSource Partners, LLC. Statements made in this podcast are subject to change without notice. Neither WealthSource Partners, LLC nor its representatives, the podcast’s hosts, or its guests have an obligation to provide revised statements in the event of changed circumstances.
Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes the use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.
Advisors who wished to be ranked in Investopedia’s Top 100 Financial Advisors list either self-submitted answers to questions compiled by Investopedia or were nominated by peers. Rankings were determined based on the number of followers and engagement on social media, primary contribution to professional industry websites, and their focus on financial literacy. Neither performance nor client experience, however, were considered. No compensation was paid by WealthSource Partners, LLC or Justin Goodbread to secure placement on Investopedia’s Top 100 Financial Advisors List.
The Exit Planning Institute's Leader of the Year is awarded to a nominee who is a CEPA credential holder who has made a significant impact or contribution to the exit planning profession or overall community through innovation and influence and is viewed by the Exit Planning Institute as a thought leader, risk-taker and specialist while showing characteristics of collaboration.
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