ESOPs offer a unique path for business owners to transition out of their companies while providing employees with a stake in the business’s success.

Kelly Finnell, President of Executive Financial Services, shares how ESOPs exemplify compassionate capitalism and benefit business onwers and advisors alike.

Exit Planning is a critical component of financial advisory services, however, many advisors face several challenges when introduced to Exit Planning.

Engaging with business owners is paramount before, during, and after the transition event.

Marketing is the lifeblood of any business. It’s how companies connect with their target audience, build brand awareness, and ultimately drive sales. In today’s tech-savvy world, marketing has evolved significantly, and there’s an ongoing debate about which approach is more effective: traditional or digital marketing.

Business value is important to all businesses, but it is transferable value – what a business is worth to a buyer without the owner’s presence and involvement in the business – that drives a successful exit.

The 2023 BEI National Exit Planning Conference gathered 140 Exit Planning professionals in Denver, Colorado last week. Over three days at the Four Seasons Hotel Denver, attendees connected with peers, thought leaders, and gained insights from business, leadership, and marketing experts through a variety of sessions and networking events.

For business advisors, the multifaceted world of family-run businesses can be as rewarding as it is complex. One of the most intricate aspects of guiding such businesses is ensuring fairness, especially when both business-active and non-business active children are in the picture. But how do you, as a business advisor, offer expert guidance in such scenarios? Understanding Fairness Beyond Business When dealing with family-run businesses, the role of a business advisor isn’t solely about dividends, shares, or operations. It’s about understanding and emphasizing the importance of fairness, a crucial consideration, especially when children play different roles within the business. Tackling the delicate issue of fairness in family business transfer is akin to navigating a complex labyrinth, but with the right approach, the journey can lead to collective success. Recognizing the unique talents and aspirations of each child is vital. Whether they are fully invested in the family enterprise or seeking different paths, their ambitions and contributions should be acknowledged. Such recognition not only ensures individual growth but solidifies the long-term success and cohesion of the family enterprise.  The Imperative of Open Communication For any business advisor, communication is essential. Remember, by fostering an environment that values open dialogue, you are laying the groundwork for mutual understanding and respect. Advisors should actively encourage the allocation of resources and mentorship for business-active children, helping them bloom within the company’s confines. Simultaneously, it’s vital to bolster non-business active children by supporting their ambitions outside the family firm. As highlighted in a previous BEI article sharing eight questions to ask your client as their child takes over the business, it’s crucial for every voice to be heard, acknowledged, and appreciated. Crafting a Legacy Rooted in Fairness Incorporating fairness into a family business is not just about the present but is a legacy-building move. A culture rooted in fairness fosters adaptability, collaboration, and resilience. It’s about making the family-run business not just an enterprise but a living ecosystem that thrives on collective aspirations and dreams. Such a culture enhances the bond within the family, also bolstering the reputation of the business in the wider community. Fairness is, after all, more than equitable distribution; it’s about shaping an environment where every member has an equal shot at success. For a deeper dive into this, check out our blog post on 5 pros and cons of family business transfers!  The Bottom Line To business advisors guiding family-run businesses: fairness is not just a principle to uphold; it’s a strategy for long-term success. It’s about recognizing individual paths, facilitating open dialogue, and ensuring that each member feels valued and included. By championing these principles, you’ll be guiding your clients towards a brighter, more harmonious future where both the business and family members can thrive. Remember, in the intricate dance of family-run businesses, fairness is the tune to which success gracefully sways.

Businesses, particularly SMEs (Small and medium-sized enterprises), have confronted the trials and tribulations of market disruptions head-on, teaching us valuable lessons about resilience and strategic planning. 

In this blog post, we’ll explore the critical role that effective family communication plays in shaping a successful business exit strategy and what you can do as an advisor to facilitate this essential step for your clients.

For a business owner, giving up something they’ve nurtured, grown, and given their life to is extremely difficult.

We’ll highlight four major elements of planning for a successful business future that can be challenging for even the most capable owners to handle independently. 

In the fast-paced world of business advisory services, the importance of lifelong learning is invaluable. As an Exit Planning Advisor, your commitment to continuous education is crucial for staying one step ahead in a rapidly evolving industry. From new capabilities with Artificial Intelligence to financial and technological advancements, how can you stay on top of your game and set yourself apart from the competition?  Throughout the course of your professional life, you’ve probably heard the term lifelong learning. Furthermore, it’s likely that the value and importance of education has been drilled into you from a young age and has ultimately led you to where you are today in your role advising business owners. In this blog, we’ll explore why Exit Planning Advisors must continue to grow their knowledge, and how obtaining a license from BEI Exit Planning can transform your advisory practice.  Why are there continued education requirements for professional advisors?  Continuing education requirements exist for a reason. If continuous learning wasn’t beneficial, there wouldn’t be industry standards mandating professional advisors to accumulate varying amounts of continuing education (CE) credits each year. For context, the BEI Certified Exit Planner (CExP) designation requires 30 accrued credit hours over a two-year period.  A recent article by CE Records highlighted that “Advisors who continually engage in advanced education and continuing professional development activities will reap the rewards through increased client trust, more meaningful and personal discussions of financial matters, and compliance with industry regulations.”  Many professional advisors would likely agree that part of their responsibility as an advisor is to maintain accurate and current information as it relates to industry trends, tax regulations, best planning practices and more. Advisory services is an industry with many moving parts, therefore, it makes sense that the landscape is growing and evolving. With such rapid growth and change, it’s not enough to just sign up for a few Exit Planning courses and call it good.  Putting practical knowledge into perspective  While foundational education is important, practical knowledge plays a crucial role in attracting and serving your business owning clients effectively. Consider the process of choosing a hair stylist. Your hair stylist had to complete levels of certification and pass board exams to be licensed to perform those services. However, we typically rely on other factors outside of their foundational education when determining if they will fit our needs.  Do their service offerings align with the latest trends? Is their pricing structure comparable to other options in the market? Do they have a scheduling system in place that makes it easy and seamless for you to book appointments with them? Do they have positive reviews online or have you heard good things from a friend?  All these considerations can be used to prove the point that practical application of a professional’s knowledge is typically deemed more important to a prospect than what their foundational knowledge is, and when and where it came from.  The same can be said when looking at it through the lens of an Exit Planning Advisor. You’ve taken a course, perhaps even invested time and money into earning a certificate or designation. However, how has the creation and execution of your Exit Plans fared for your clients? Have you adapted your fees in a way that makes sense with your target client? Have you had to collaborate with other advisors to determine the direction of a plan or consult them with a specific client problem? With the right system in place; one that is designed to meet your clients where they are; your practical and foundational knowledge become more than just education.   Why Exit Planning Advisors need more than education  At BEI, we firmly believe that it’s not enough to go through a training program or sign up for a few courses on Exit Planning. Having a proven, repeatable process and access to the right tools helps you do more for your clients.  With a BEI License, you get the framework that allows you to better understand your client’s goals and create a solution for them. Whether used for marketing, planning, or both, a BEI License allows for practical knowledge of Exit Planning to be applied and challenged every time you are working with a business owner client.  Embracing education is one thing, but being able to use it in the context of Exit Planning engagements opens doors to higher earning potential, greater job satisfaction, and access to more resources and referrals for your services.  How a BEI License ties it all together BEI’s Exit Planning training is designed to give you the fundamental tools that you will be able to use and apply with one of BEI’s Licenses. Performing Exit Planning services is a learned trade that requires continued, lifelong learning.  Ready to harness the power of education and tools to transform your planning practice?  Contact us today so we can help you determine the best path for your training needs. With BEI product offerings, training is included at discounted rates when a license is purchased to affirm our belief that an Exit Planning License serves as a practical application tool for your training.