The importance of exit and succession planning cannot be understated.
No matter the sector of professional advisory services you provide, you’ve likely had conversations with your clients that point back to key aspects of exit planning as it relates to their legacy, their business value, or their eventual business transition or exit.
The 2023 State of Owner Readiness Report produced by the Exit Planning Institute reflects a transformed landscape noting that business owners are more educated and prepared for their exit than ever before. Also reported was an incredible 40% growth in wealth transfer, which fuels a strong momentum within the community, especially as owners navigate these critical times.
Advisors serve as navigators, visionaries, and strategists.
Despite the importance of planning for owners, taking on this role often brings a myriad of obstacles for advisors making it hard to integrate exit and succussion services into their core practice. It can feel overwhelming and challenging for advisors to step outside their industry-specific expertise to provide these added planning services.
In this post, we’ll explore the various obstacles that advisors encounter when getting started in exit planning and how to overcome them with Capitaliz to ensure success in providing this essential service to owners.
Common obstacles include:
- Limited Bandwidth & Time
- Budget Constraints
- Perception of Complexity
- Challenges Winning Engagements
- Uncertainty About Growth Potential
- Staying Active/Using their Own Tools
- Misconceptions About Training and Certifications
- Need for a Team Approach
Exit Planning Obstacles & Capitaliz Solutions
Limited Bandwidth & Time
Many advisors note limited bandwidth as being a major hurdle in expanding their service offerings to include exit planning. Large workloads due to existing client commitments or time constraints due to busy seasons can often be enough to rule out the idea of exit planning for advisors.
We would urge advisors to consider two solutions:
- Take it as a gradual process.
The integration of exit planning services doesn’t have to happen instantly. The truth is that you are likely already providing key services that are considered a part of the exit planning process.
Capitaliz advisors who have become accredited through Capitaliz Academy can attest to the fact that Exit Planning proves to be a complimentary service. Further, use of the platform provides automation and content support to allow for easy incorporation without impact to existing schedules.
- Revisit how your time is spent.
Delegating tasks when possible and working to build a team of advisors can help simplify the process. Further, making use of appropriate tools, resources, and marketing content can solve bandwidth issues through streamlined project management, communication amongst team members, and automated systems for report updates and deadlines.
Budget Constraints
Advisors often have the perception that to incorporate exit planning to their core services, they must have a substantial budget. The cost associated with the variety of training opportunities and planning tools on the market can deter advisors from taking the first step.
Solution: Explore Your Options.
Exit planning does not require a large financial commitment. As mentioned above, advisors can always start small and invest as their client list grows.
At Capitaliz, we are confident that you will see ROI in less time than you think you might. Just like exit planning can provide ROI for owners as they work to become more attractive to buyers, providing these services as an advisor provides the opportunity for added and differentiated revenue streams, and the potential for long-term planning engagements.
We believe a great entry point for advisors is accessing our new platform feature, the Value Gap Assessment. This assessment and report paves way for countless conversations around the significance of the value gap. Click here to explore our plan options!
Perception of Complexity
Exit Planning can be perceived as a complex offering to some advisors. It might seem more logical and comfortable to stay within your area of expertise.
Solution: Take a Chance
While there is nothing wrong with “staying in your lane,” we like to encourage advisors we speak to think about the barriers to entry that you’ve once broke through. Tools within the Capitaliz Project Management Suite like implementation roadmaps and dynamic revaluation were designed specifically for this hurdle.
Breaking down the process into manageable steps and having access to industry-leading customer support typically address any perceived complexities that Capitaliz Advisors have shared.
While every business owner is different and comes with their own set of business needs and goals, it’s inevitable that they will one day leave the business. If they want it to be on their terms, they’ll need an advisor who can help them create and execute a strategy, regardless of industry, audience, or purpose.
Challenges Winning Engagements
Advisors who desire to take on these services may run into roadblocks in engaging clients and winning their first engagements. It’s one thing to learn and understand a framework and process, and another to execute a plan with a client.
Solution: The Value Gap Assessment
Capitaliz has strategically designed an end-to-end planning process so advisors can power their planning efforts every step of the way. However, knowing that a barrier to entry is oftentimes getting the “yes” from a client, our latest feature – the Value Gap Assessment – was designed to help in marketing and prospecting.
Send the assessment link out digitally and as soon as prospects or clients fill it out, you’ve got a report that can frame data-driven conversations around what the owners’ current value is, the value potential, and what steps should be prioritized to grow and accelerate value.
Uncertainty About Growth Potential
Advisors who are already successful in their line of work may hesitate to add Exit Planning to their practice, thinking they don’t need to offer another service.
Solution: Highlight your Valuable ROI
Consider the added value that a business owner receives when your core services are coupled with Exit Planning services that they may not even know they need. Offering this service positions you as your client’s most trusted advisor, ultimately deepening client relationships and opening doors to new opportunities and success.
As mentioned above alongside budget constraints, Exit Planning can also serve as a key differentiator and added stream of recurring revenue that you might not otherwise have without offering this long-term planning service.
Staying Active/Using Their Own Tools
There are so many tools on the market for advisors to take advantage of. Sometimes, when advisors join programs, they struggle staying active and engaged with the provided resources.
Solution: “Service with Software”
SaaS stands for “Software as a Service,” but once you adopt the Capitaliz platform, you’ll quickly realize why we’ve often been referenced as “Service with Software.” It’s our intention that once you’re invested in us, we’re equally invested in ensuring you are making the most of the platform for your practice.
Once you sign on with Capitaliz, you’ll have one-on-one support with one of our in-house relationship managers, led by our VP, Sam Walters. Sam has over 12 years of experience as an exit planner and helped develop the Capitaliz platform. Your first meeting as a new advisor on our platform will be with Sam and the team.
In that meeting, introduce you to our training and resource environment, Capitaliz Academy. The academy holds all the tools and resources our founder, Craig West, used to create Australia’s largest exit planning advisory.
“Besides creating my own planning system 10 years ago, I have subscribed to and gone through the training on several other platforms. None stand up to Capitaliz. It is a complete system.” – Capitaliz User
Misconceptions About Training and Certification Requirements
A significant barrier to entry is a common misconception that advisors must be certified in Exit Planning to offer it as a service.
Solution: Leverage your Existing Knowledge
As this article repeats, much of the work involved in Exit Planning is that of which you are already doing through your core services, or work that can be accomplished by partnering with a team of advisors.
Certification is not always a prerequisite.
While certifications or training is encouraged and can certainly enhance credibility, advisors can adhere to the exit planning advice they often give to owners: start early!
Capitaliz advisors who begin their onboarding with Capitaliz Academy or lead engagements using data-backed insights reports feel confident in providing services as they gain a comprehensive understanding of what an owner’s goals are, what implementation steps are necessary, and what team members need to be brought in.
Need for a Team Approach
Many specialty advisors hesitate to conduct Exit Planning as they know they’d prefer to take on a more generalist role or serve as the project manager/consultant. It’s also sometimes misunderstood how tools can work in tandem to complement planning efforts.
Solution: Collaborate with the Capitaliz Network & your Advisor Team
The project management suite allows for efficient collaboration and automated reporting for your client and their entire team. Whatever role you might play, having a central location where the necessary stakeholders can access, update, and report progress makes the process simpler for you to manage.
Access to the Capitaliz team and the network of advisors is also a bonus as you’ll be validated and supported every step of the way.
Conclusion
Advisors encounter various challenges when incorporating Exit Planning, but these hurdles can be surmounted with the appropriate strategies, support, and resources. By streamlining the process with Capitaliz and highlighting the benefits you’ll bring to business owners, advisors can offer these essential services to owners who will inevitably exit their business.
To learn more about how our solutions might settle some of your hesitations, or if you’d like to talk through another challenge you’re facing, book time with us below:
