TRANSITION TALK

The Importance of Human Capital – A Founder's Perspective

Posted by David Grau Sr., JD on Aug 1, 2018 10:46:31 AM

Cultivating A Strong Team

Looking back over the past few decades, you can easily spot the trends and physical changes in our industry. Since 2000, when FP Transitions formally opened its doors, I’ve seen our profession, especially in those working under an independent broker-dealer or hybrid model, steadily shift to fee and advice-based solutions. Early on, most practices that we represented were made up primarily of transaction or non-recurring revenue; today advisors build businesses with a focus on fee-based income streams. Independent insurance companies are evolving as well with a sophisticated and wide array of recurring revenue.

Along the way, these practices have become not just more valuable, they are also physically larger and stronger. This requires more qualified people to analyze, give advice, produce revenue, as well as the adjunct talent to support these professionals. Looking forward, we see an ever increasing need to recruit and retain the best talent in the industry to support not just where your practice is today, but where that growing business will be ten years from now. Everyone has read about the need for recruiting; but the story has shifted in the past few years and will continue to do so going forward. Rather than simply hiring next gen talent as the need arises, this could well turn into a fierce competition to adequately reward and retain that talent as more and more advisory businesses reach the next level of success and draw upon a talent pool that has scarcity written all over it. 

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Topics: Business Growth, Enterprise Strength, Next Generation, Building Your Team, Equity Pathways

[FP WEBCAST] Organizational Structures

Posted by FP Transitions on Feb 29, 2016 1:00:00 PM
When a single advisor with a single book of business reaches a certain level of complexity it makes sense to move it into an entity; an entity with a structure that will support business evolution and growth.

Unfortunately, as businesses evolve from single advisor, single book to a more established entity they tend to move into a structure that leads to value that is attached to individual client books within a business rather than to the business itself. This is because, as practices grow and add more advisors, they are onboarded using revenue splitting agreements keeping the books siloed. And, as Brad Says, “If your books are siloed, you’re not a firm – you’re essentially just roommates sharing paper.”

The key to avoiding this is to set up an organizational structure that is an actual business unit instead of just an accounting conduit.

Our new webcast explores different ensembles, and how an improper organizational structure can be dangerous for the ongoing growth and value of your business. We’ll also discuss structures that will ensure your value is tied to your business as a whole and will promote the longevity and sustainability of your firm.
 
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Topics: Webcasts, Equity, Organizational Structure, Enterprise Strength, Revenue Sharing, Entity Structure

Top 6 Ways to Grow Your Business

Posted by Christine Sjölin on Jan 28, 2016 9:52:57 AM

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1. Invest in Human Capital
Most advisors have built their business from nothing into their single most valuable asset. Data from our 2015 Valuation Database indicates that businesses with multiple professionals accumulate assets at a higher rate than sole practitioners. As your business matures, it is imperative to invest in the next generation of talent, to keep the engine running while you begin to enjoy the reward for what you’ve built.

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Topics: Revenue Strength, Enterprise Strength, Business Value

[FP WEBCAST] Enterprise Strength vs. Revenue Strength

Posted by FP Transitions on Nov 11, 2015 1:00:00 PM
Revenue Strength: the cash flow, expenses, and assets of your business.

Enterprise Strength: the infrastructure that supports revenue growth.

Can a business really thrive with just one? In short, no. Each supports the other and together they drive your business to maximum value. In our new webcast, Christine Sjolin takes a look at how enterprise strength and revenue strength differ, and how they work together to open up your choices for future business growth and exit planning.
 

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Topics: Webcasts, Equity, Revenue Strength, Enterprise Strength

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