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Exit Planning is an essential process for business owners who are looking to exit their business on their own terms. It involves a series of steps and discussions that help owners plan their exits and maximize the value of their businesses. 

In last week’s blog, we covered the ins and outs of the Discovery Meeting and what it means for you as the advisor and your business owner client. This week, we’ll review the Engagement Meeting.

The Engagement Meeting is a critical step in the Exit Planning Process. In this meeting, you will have the opportunity to convert your prospects into clients by discussing the goals of the business owner and how you can help them achieve those goals. 

What is the Engagement Meeting?

The Engagement Meeting provides business owners with a valuable opportunity to explore the steps necessary to enhance their business value and exit on their own terms. Throughout the meeting, it is essential to have a client-centric discussion, focusing on the owner’s goals and how you, as the advisor, can assist them in accomplishing these objectives. 

As the business advisor, your role is to help your client envision the process and outcome of the Exit Planning engagement for both themselves and their business. It is only after carefully reviewing their individual circumstances and recommended actions that you should address the matter of fees. 

Let’s look at the three meeting topics within the Engagement Meeting:

1. Exit Plan design

The first topic of discussion in the Engagement Meeting is Exit Plan design. Business owners can get busy and may forget the details of a previous conversation, but utilizing the illustration created in the Discovery Meeting will help to keep the previous conversation top of mind with your prospect. 

The illustration will also help you to discuss potential plan designs and recommendations, the bird’s eye view of the path to exit, and provide suggestions for action along the path. Ultimately, you will show owners the many moving parts of Exit Planning, and that you have the experience to create and manage the clear action steps.

2. Working with other advisors 

The second topic of discussion in the Engagement Meeting is communicating and collaborating with other advisors to spur owner engagement. Exit Planning is not intended for one advisor to tackle alone; it requires a team of advisors and experts to implement the recommendations that will guide your clients to a successful business exit. 

For many Exit Planning Advisors, they find that starting with the client’s existing advisors is a strong place to start. It is essential to eliminate any obstacles to the client’s progress. This can be done by assessing team member gaps. These gaps tend to change over time as the process proceeds. Taking it one step at a time and adjusting the structure of the team as the engagement progresses will streamline meetings, and thus save time and money.

As BEI Member Eddie Drescher shares, “My job as the Exit Planning Advisor is to try to eliminate any impediments to them moving forward.  Their advisor teams are not usually complete before beginning the Exit Planning Process. It takes time to determine advisor team member gaps, and they usually evolve as the process plays out. I like to take it one step at a time and add/subtract advisor team members as the engagement progresses.” 

3. Fees and the Engagement Agreement 

The final piece of discussion in the Engagement Meeting is your fee structure. You have spent the bulk of this meeting and the previous setting the stage for where you will bring value to the owner, their business, and the process ahead. 

Additionally, utilize your existing relationships with advisors in your network who will be part of the Advisor Team to explain to the business owner that you can streamline meetings and reduce time and cost, as they are already familiar with your process. 

While discussing pricing with your clients may be a challenging conversation, it is crucial to overcoming concerns regarding the cost of an Exit Planning engagement.

The Engagement Meeting is an essential step in the Exit Planning Process, and provides an opportunity for you to convert your prospects into Exit Planning clients. Through consistent communication, working with other advisors, discussing the Exit Plan design, and determining your fee structure, you will be able to help the business owner visualize what the process and outcome will be for their business. 

Remember, Exit Planning is a team effort, and it takes a team of advisors and exports to implement the recommendations that will take your clients to their ideal exit. In next week’s blog, we’ll dive deeper into pricing considerations when working with clients and strategies for addressing concerns related to the cost of Exit Planning. See you next week! 

The first step in beginning an Exit Planning engagement with a business owner is to secure a meeting with them. In Exit Planning, there are typically two meetings with a potential client: the Discovery Meeting and the Engagement Meeting. You may be asking yourself what the difference is between these meetings and why they are both needed. Over this blog and the next, we intend to answer just that.  

Why are both needed?

Business owners may not be aware of the benefits of Exit Planning and may have misconceptions about what it entails.  Most owners aren’t sure that Exit Planning makes sense for them right now, have misperceptions about what it means for them and their business, and don’t know how long it will take to create and implement a plan. This lack of knowledge gives you an opportunity to educate owners and differentiate yourself from other advisors.

What is the Discovery Meeting? 

During the Discovery Meeting, your goal as the business advisor is to understand the owner’s goals and aspirations, and determine whether you can help them achieve those goals. Since this meeting ultimately shapes an owner’s first impression of you, it should be focused on what solutions you can provide to the owner to help with the pain points that keep them up at night. You must explain the benefits of Exit Planning to both owners and their companies and show prospective clients how they will benefit from working with you.   

To make the most of the Discovery Meeting, you should aim to achieve the following objectives: 

1. Develop owner trust and confidence in your ability to help.

Think about the last large product purchase you made. You might have read reviews or done extensive research on the reliability of the product. As consumers, we do this because we want to trust that our money is being well spent on a product we can trust. 

The same is true for business owners when purchasing services. Owners want to have confidence that their money is being well spent and bringing value into the business.  

Business advisors gain trust and confidence with their prospects by asking personal questions about the business. Find out why the owner started the business, what challenges they’ve been able to overcome, the growth path of their business venture, and how they are feeling about their role in the business today. Demonstrating a genuine interest in an owner’s connection to their business will open them up to having a conversation with you about what their post-exit future looks like without the business. 

2. Determine if you’re able to help and if the owner is willing to receive assistance.

To find out if an owner wants help and if you are the right advisor to help them, you must once again ask the right questions. This time, your questions are more oriented around Exit Planning, such as, “Who would run the company if something unexpected were to happen to you today?”  

Some owners want to slowly exit over many years, while others will want to exit by the end of the month. It’s your job as the advisor to clearly define what a business exit means and looks like to the owner so you can explain to them how you’ve helped other owners in their shoes. 

3. Explain the Exit Planning Process and its benefits in a manner that owners understand. 

Using visual aids to explain a business process helps owners understand the big picture and the steps needed to achieve their exit strategy. This approach creates an emotional buy-in by providing prospects with a clear image of the desired outcome. In addition, it showcases your expertise in this field and establishes you as the go-to advisor to guide owners through the process.

Many owners will need to sit with this information before committing to jumping into doing an Exit Plan. In our next blog, we’ll cover what an Engagement Meeting looks like so you can turn your prospect into a client and begin planning. 

Takeaways

• Start the Discovery Meeting by asking questions about the owner’s business and goals.
• Develop trust and confidence by showing a genuine interest in the owner;s connection to their business.
• Listen carefully to owners’ concerns and provide suggestions for action only when appropriate.
• Keep your explanations simple and visually illustrate the Exit Planning Process.

Ready to discover a better way to plan with BEI? Schedule a meeting with us to talk more about how to best prepare for Exit Planning conversations. 

Last week’s post reviewed 4 ways to engage owners in planning and get them to act towards Exit Planning. No matter which tactic you take with your prospective clients, it’s also important to understand why owners are hesitant to start the process. In today’s blog, we’ll look at 4 common misperceptions about planning so you can match your tactics with the reasons why owners are holding back. 

1.     I am too busy to plan.

Owners are justifiably focused on present issues in the business and managing the day-to-day operations. In their minds, their exit from the business is far in the future and owners believe they will make time to plan later. In these cases, relating tasks to an owner’s immediate concerns can really make an impact.

By doing a quick assessment, you can visually show them their most pressing issues today, whether that be growing business value or hiring key employees. By alleviating those concerns now, you are not only freeing up their time in the present, but you are also freeing up time in the future for more planning endeavors. 

2.     I don’t think I need to plan.

Many owners don’t believe they need to plan because they don’t fully understand their own assumptions on the value of their business and their current financial resources. Further still, many owners don’t realize how their involvement as owner impacts the value and how much it might decrease once they leave. 

Oftentimes, by showing that gap, you can better illustrate the time it would take and the steps necessary to grow business value. If you can urge owners to start with improving operating systems and getting key employees in place so that the business can run without them, they will be in a much better place when it comes time to make the transition.  As a bonus, they can start to envision what to do with their free time post-exit. 

3.     If it was important, one of my advisors would have reached out about it.

While Exit Planning may not be top of mind for owners, as an advisor wanting to grow in this area of planning work, it should be top of mind for you. Don’t assume they are talking to their other advisors about Exit Planning and don’t wait for them to bring it up. 

Be at the forefront of their minds with the content you send and the questions you ask. By doing this, regardless of if they want to do one phase of an Exit Plan or a comprehensive plan, you will be the trusted advisor they seek.

4.     When I’m ready to exit, I’ll take action. 

Owners frequently underestimate the amount of planning needed for a successful business exit. Transferring a business to the person the owner chooses, at the time they want, and for the money the need takes spending resources today. According to the BEI 2022 Business Owner Survey, 35% of owners indicated that not believing they needed to plan for their exit yet was standing in their way of doing planning work. 

There are several ways to approach this misperception. One would be to offer to review their business continuity instructions. Even if their business exit is too far into the future for the owner to commit to planning today, planning for the scenarios that would take them out of the business today is still valuable. 

The Bottom Line

In conclusion, it is not uncommon to be faced with skepticism when proposing Exit Planning to your business owner clients. However, with persistence and proven strategies, conversations with owners get easier when you can show them the long-term value of both planning for their future and working with you to do so. 

To best determine whether an ESOP is a viable Exit Path for your clients, it’s best to know the general advantages and disadvantages present in all ESOPs.

Continue reading “ESOPs: The Good, The Bad, and The Ugly”

A common challenge we hear from the advisors we talk to is getting the attention of owners so they take action in Exit Planning. Advisors who have developed successful Exit Planning practices understand that they must attract and continue to stay engaged with their clients throughout the life of their client’s business. 

The most successful advisors in the BEI Network use an owner’s immediate concerns as a springboard for larger Exit Planning discussions. Proactive advisors say, “Your concern that key employees could leave with valuable information or relationships is a valid one. Once we know a bit more about your business, we will recommend one or more specific actions that you can take before you hire your next key employee. Any action we take today will also grow your business so that one day, you can transfer it successfully. We’re ready to get to work. Are you?”

As a business advisor, you understand the importance of Exit Planning for business owners. Attracting owners’ attention to something owners believe they can put off for another day, let alone engage them in a long-term planning relationship, is difficult—but successful Exit Planning Advisors know how to do it.

This post, which is the first in a series of related articles, will outline four attention-getting strategies to extract busy owners from their present concerns long enough to plan for the future.

Reach out before burnout.

Typically once owners experience burnout, they feel the need to exit immediately, making it nearly impossible for them to plan for a successful future.  Owners who think they can

postpone taking action until they are “ready” to exit, generally learn—the hard way—that when they are ready to exit, their businesses are not. That’s why proactive advisors reach out to owners before burnout happens, engaging them in a planning relationship that ensures they’re prepared for whatever the future holds.

If you sense an owner’s hesitations or aversions to planning, perhaps you can get them to start small by working on business continuity instructions or mapping out a Buy-Sell Agreement. Oftentimes, once an owner begins planning work, it is easier to keep moving with the plan once the ball is rolling. 

Engage in action-based Exit Planning.

Addressing each client’s top-of-mind problem(s) by asking questions, listening, and providing immediate solutions to pressing issues positions the advisor as a trusted resource to lead the planning team. For instance, if an owner is concerned about a lack of business growth, an Exit Planner might suggest a Stay Bonus Plan to motivate existing and new management to grow the business at the necessary pace. 

In short, successful Exit Planners focus on the actions owners are willing to take today to solve immediate problems, positioning the business to support their exit goals. We’ve collected and refined an extensive list of open-ended questions designed to elicit information and meaningful answers from business owners. 

Drip valuable information.

Exit Planners consistently provide owners with information that highlights both the current and future benefits of taking action today. Action taken earlier on in the process allows for more time to increase business value and improve chances of an overall higher sales price. This information educates owners on the importance of Exit Planning and helps them understand the value of engaging in a planning relationship.

At BEI, we know that curating content and delivering it to your prospective clients in a way that drives brand awareness and more conversations takes time and effort. That’s why we developed a system that takes care of the heavy lifting for you. With a quick assessment, you’ll be able to help owners understand what they’ve done, and haven’t done, to protect their families and their companies should they die or become disabled before they can execute the exits they desire. Start overcoming owners’ lack of knowledge by providing it! 

Link owners’ immediate concerns to Exit Planning.

Proactive Exit Planners leverage owners’ immediate concerns to initiate discussions on  Exit Planning. Showing owners how you can solve their current problems and position their business for a successful transfer in the future opens the door to doing a full, comprehensive plan. By proactively addressing these issues, business advisors can make the idea of Exit Planning less daunting and more appealing to owners.

As a business advisor, you know that the bulk of Exit Planning occurs long before an ownership transfer begins. By understanding these four attention-getting strategies, you can attract and engage successful owners in Exit Planning. By reaching out before burnout, engaging in action-based planning, dripping valuable information, and linking owners’ immediate concerns to Exit Planning, you can help owners understand the importance of planning for the future and position their business for a successful exit.
 

As a business advisor, you understand the importance of reaching out to your target audience in a consistent and effective manner. But with so many responsibilities and tasks on your plate, it can be difficult to keep up with your marketing efforts. 

That’s where automating your marketing engine comes in. By streamlining your marketing process and utilizing the right tools and strategies, you can save time, improve your results, and spend more time delivering better outcomes to your clients. At BEI Exit Planning, we believe that the driving forces behind effective outreach start with the following: 

• Have something good to say
• Say it well
• Say it often
• Say it to the right people

Automating your marketing engine can save you time and effort, allowing you to focus on delivering the best results to your clients. Let’s take a closer look at 5 key strategies for automating your marketing engine.

Invest in a CRM: 

A customer relationship management (CRM) system is a valuable tool that can help you automate your marketing processes and improve your results. From lead generation to customer engagement, a CRM assists in streamlining your activities and improving relationships with your business-owner clients. 

By investing in customer relationship management, you decide how to consolidate your customer data within a central database, enabling you to easily access, update, and analyze information about your clients.  When choosing a CRM, look for a platform that fits your needs and aligns with your goals, and be sure to invest the time and resources necessary to properly implement and utilize it. 

Not sure which platform is right for you? Check out Forbes’ recent article on the best CRM Platforms for Small Businesses.

Utilize Marketing Automation Tools: 

Marketing automation tools can assist you in streamlining various marketing activities, such as creating and distributing email and social media content. With these tools, you can quickly and efficiently create high-quality content that aligns with your brand’s messaging and tone.You can also schedule your content ahead of time, ensuring that your message is delivered at the right time to your target audience, increasing the likelihood of engagement and conversions.

Additionally, marketing automation tools allow you to track user behavior, enabling you to better understand their needs and preferences. This data can be used to personalize your marketing efforts, tailoring your messaging to your audience and boosting your conversion rates. Moreover, lead nurturing campaigns can be automated based on behavior data, allowing you to build stronger relationships with potential clients and ultimately increase sales.

Segment Your Target Market: 

Segmenting your target market is a key strategy for ensuring that your marketing messages reach the right audience. Utilize a combination of demographic and psychographic information, such as age, income, and interests to better understand your target audience and deliver tailored messages that resonate. Automating your targeting efforts can yield superior outcomes with increased efficiency and efficacy. 

Personalize Your Communication: 

Personalizing your communication is another key strategy for automating your marketing engine. By automating your communication processes, you can ensure that you’re sending the right message, at the right time, to the right person. 

With the BEI Marketing License, you’ll gain access to: 

• Brandable Marketing Content & Client Reports
• Automated Content Distribution
• Networking and Workshop Resources
• Assessment & Discovery Tools

With these resources, you’ll be able to easily expand the reach of your brand and customize your message to bring in more clients.

Analyze Your Results: 

The final step in automating your marketing engine is to analyze your results. By tracking your website traffic and other metrics like engagement rate, you can see which marketing strategies are working best, and identify areas for improvement. Use tools like Google Analytics to track your progress and optimize your efforts, and be sure to adjust your strategy as needed based on your findings.

In conclusion, automating your marketing engines can help you save time, improve your results, and deliver better outcomes for your business owner clients. By utilizing these five key strategies, you can maximize your efforts, streamline your processes, and achieve your marketing goals. 

Start today and see the results for yourself! Ready to take the next step in your business advisory career? Click here to become the indispensable business advisor to your clients today and build your Exit Planning skill set! 

In the BEI Seven Step Exit Planning Process, the crucial first task is to determine an owner’s post-exit objectives. The value-based goals that a business owner seeks at the time of their transition is ultimately what shapes and guides the comprehensive Exit Plan. 

During this stage, we often suggest that advisors pose the question: “What’s next?”  

Encouraging business owners to look past the day-to-day reality they have been living since the inception of their business is no small feat. However, it is crucial to engage in discussions regarding your clients’ desired lifestyle post-exit in order to determine the necessary steps for achieving their goals. 

For some owners, they just want to be able to live a financially sustainable lifestyle and spend more time with their grandkids. For others, they want to leave an impactful legacy within their community or take on a new business venture. As you’ve spent countless conversations asking clients what their next great adventure entails, have you flipped the script and asked yourself the same question? 

Can Exit Planning be your next great adventure? 

Considering Exit Planning Services 

Exit Planning is a learned skill set requiring training and many years of continued education. This means that those who are introduced to Exit Planning have likely spent many years in another profession or speciality. At BEI, we hear from various professional advisors such as CPAs, attorneys, financial advisors, business consultants, and others who seek a change of pace or a way to differentiate their practice.

We’ve also heard from business owners themselves who have their own stories and experiences exiting their businesses who wish they had more Exit Planning knowledge at the the time of their own business exit. 

Whether you are looking to broaden your core services, stand out from competitors, or to help owners avoid the mistakes you have made, there are several reasons why Exit Planning could be the perfect fit for you. Exit Planning is about creating and maximizing value in a business to be sold for the highest sale price. It’s separate from retirement or succession planning, and many business owners – 80% according to the 2022 BEI Business Owner Survey –  lack a formal, written Exit Plan. 

Exit Planning presents a huge opportunity in an expanding market, making it a valuable addition to your career. However, as with any new venture, it’s important to consider the risks and rewards. Below, we’ve outlined four considerations BEI views as rewards to Exit Planning and how you can make this venture worthwhile.  

Authority Positioning 

According to Forbes, “Authority positioning is one of the top ways in modern marketing to build recognition for yourself, your company, and your brand.” Using authority positioning tactics allows you to show off your expertise to both current customers and the prospects you are working to convert. 

While there are several ways to establish authority and credibility, Exit Planning expertise can be highlighted in a variety of ways. Due to the sheer amount of time invested to become an Exit Planning Advisor, it’s an accomplishment worth highlighting. 

One way to get started with authority positioning is to write content that focuses on Exit Planning for business owners. Whether in the form of blogs, social media, e-newsletters, videos, or something else, you will show potential clients that you have the knowledge and expertise to help them with their Exit Planning needs. 

To further establish your authority in Exit Planning, consider hosting webinars or giving talks sharing your expertise. Sharing your knowledge, whether by presentation, podcast, or in writing, helps further your status as an expert in Exit Planning. 

Be the Quarterback vs. the Coach 

For professional advisors who particularly enjoy the “personal” side of business, Exit Planning may be just the addition you need to mix up your work routine. The comprehensive nature of Exit Planning requires that the advisors take more of a quarterback role as opposed to a coach. 

While there are certainly many instances that will require you to step in and provide resources and knowledge based on your background, you will also manage the creation and execution of the Exit Plan. Further, it will be up to the Exit Planning Advisor to manage the Advisor Team and take that pressure off of business owners. 

For a few professionals, transitioning from a specialist to a more generalized role and assuming the added responsibility of managing tasks and advisors in an Exit Plan can be a significant change of pace.

Increased Revenue & Clients 

Don’t let the thought of Exit Planning being time-consuming deter you as an advisor. You may be pleasantly surprised by how it can be integrated into your current work easily. No matter your area of specialization, with the right strategies and tools, Exit Planning can bring significant added value to your services.

Similar to authority positioning, credibility can go a long way when it comes to securing a new client or obtaining a referral. While building a credible reputation may take time, once clients and peers recognize you as an Exit Planning expert, doors begin to open.  

Stand Out Among Competitors

In a saturated business market, owners have a lot of options on who to hire to help them with their needs. Exit Planning is oftentimes a need that owners aren’t even aware of yet or don’t know how to get started. Owners may start with a narrow lens, which means they’ll rely on education and recommendations from trusted sources about what Exit Planning is and why it’s important for them and their business.

While adding Exit Planning services to your practice might not be enough to differentiate on its own, finding new and innovative ways to market this service can be an advantageous opportunity for you as an advisor. 
 

The Bottom Line 

It’s likely that in your professional life as an advisor, you are used to focusing on your clients and what their “next great adventure” is. However, it’s worth considering how you can enhance your professional life by becoming a Certified Exit Planning Advisor.

Are you tired of playing the waiting game with your clients? 

As a business advisor, it’s time to take charge and proactively engage with them. By doing so, you’ll not only deepen your understanding of their goals and challenges, but also build stronger relationships and stay ahead of industry trends. What kind of advisor are you? Read our recent blog post on Proactive vs. Passive Advisors and take the first step in becoming an indispensable asset to your clientele.

Let’s turn the tables, check out these tips for effective, proactive engagement now!

Proactive client engagement is the process of regularly interacting with your clients in order to:

• Understand their business and personal goals.
• Identify and address potential issues.
• Nurture strong relationships.
• Stay informed about industry trends and changes. 

By engaging proactively, you can provide valuable guidance and support that can help them achieve their desired exit goals.

Benefits of Proactive Client Engagement:

One of the primary benefits of proactive client engagement is that it allows you to identify and address potential issues early on. For example, if you as the advisor notice that a client’s business is struggling financially, you can help them develop a business plan to grow value and determine potential exit strategy options. 

Another benefit of proactive client engagement is that it allows you to develop a deeper understanding of your client’s business and personal goals. This can be incredibly valuable when it comes to a business exit, as you will have a clear understanding of what your client hopes to accomplish. In the Exit Planning world, the ability to create a customized Exit Plan tailored to your client’s specific needs and objectives is essential to becoming an indispensable business advisor. 

Engaging regularly and proactively also allows you to build stronger relationships with your clients. Regularly interact with your core clients to establish trust and demonstrate your commitment to their success. This can lead to long-term loyalty and repeat business, as well as positive word-of-mouth referrals. 

Finally, proactive client engagement can help you stay ahead of industry trends and shifts. By staying informed about the latest developments in your client’s industry, you can help them navigate changes in the marketplace and adapt. Ultimately, assisting your client in staying competitive to achieve a successful business exit should be a top priority as an advisor.

Tips:

So, how can you effectively engage with your clients proactively? Here are a few tips:

• Plan regular check-ins: Set aside time to check in with your clients on a regular basis, such as monthly, quarterly, or even yearly. During these check-ins, discuss their business and personal goals, as well as any challenges they may be facing.
• Be an active listener: Serve as a sounding board for your clients. Listen attentively to their concerns and provide advice when appropriate. Encourage open communication and be open to receiving feedback.
• Keep your clients informed: Share relevant information with your clients. This could include industry news, trends, and best practices. By staying informed about the latest developments in their industry, you can help them navigate shifts in the marketplace and adapt to new technologies. Download our latest Business Owner Survey to stay up to date!
• Provide valuable resources: Offer value to your clients, such as access to resources, training, and experts. Equip your client with the tools and information they need to succeed, so you can help them achieve their desired outcome. 
• Follow up: After each check-in, be sure to follow up with your clients via email or call. Summarize what was discussed and highlight any action items that need to be taken. This will ensure that your clients are on track to achieve their goals, and any issues can be addressed in a timely manner.

Proactive client engagement is not just a one-time event, but should be an ongoing process to ensure the best outcome for your client. Building trust and understanding with your clients is key to long-term success.

To recap, proactive client engagement allows you as the advisor to address potential issues in the Exit Planning Process early on, develop a deeper understanding of your clients’ goals, build stronger relations, and stay ahead of industry trends. Incorporate proactive engagement into your practice process and become an invaluable business advisor to your clients!

Challenges and benefits of family business transfers.

Continue reading “5 Pros and Cons of Family Business Transfers”

For over 25 years, BEI has been dedicated to assisting advisors in strengthening their connections with business-owning clients and providing the necessary tools to help reach their goals.

The BEI team frequently engages in conversations with professional advisors, exploring how incorporating Exit Planning can enhance their core offerings, differentiate them from competitors, and provide a new way to approach clients. However, despite the benefits of Exit Planning, many advisors struggle with the question of how to properly charge for these services and come to us for guidance.

Navigating the complexities of fee structures can be challenging, particularly in the Exit Planning space where different pricing strategies are prevalent. Many advisors may find it difficult to decide on the most appropriate method and how it will be received by clients and prospects.

Pricing Strategies 

Over the years, we have observed a diverse range of fee structures used by advisors within the BEI Network. Some advisors choose to align their Exit Planning strategy with their existing fee schedule for other services offered in their practice, while others opt for a unique approach. To assist advisors in this process, we have compiled a list of some of the most commonly used fee methods:

• The All-In Strategy

Completing one specific aspect of an Exit Plan, such as creating Business Continuity Instructions or a Value Driver Report would qualify for this method. This approach is often used for charging on a project basis or for business owners who are still far from their exit date.

• The 50-50 Strategy 

This fee method involves collecting 50% of the fee upfront and the rest upon completion of the project. Alternatively, this method could be implemented by billing 33% of the fee every month for a three-month period or 25% of the fee for four months. 

• Retainer Strategy 

The advisor and the business owner come to a mutual agreement on a fixed monthly fee for a specific duration, typically on an annual basis.

• The Phase-Creation Strategy

This method involves breaking the Exit Plan creation and the implementation process into multiple “phases,” and the business owner would pay as you enter and complete each phase.  

• The Hybrid-Pricing Strategy 

This approach asks for a sum up front (e.g., 25% of the proposed total fee), and then the balance is on a retainer agreement. 

• Hourly Pricing Strategy 

While project billing has a higher perceived value in the mind of the business owner, many advisors are more comfortable charging an hourly fee as they do with their existing practice work.

• Bonus Ideas on Pricing Strategy 

An Exit Planning Advisor could offer the business owner a “credit” of the Exit Planning fees towards any fees they would get as a result of their effort. You also have the option to add a “success fee” as a percentage of the selling price onto your Exit Planning fee. 

Selecting the Right Strategy 

While the above list provides common strategies from the BEI Network of advisors, it is by no means a comprehensive list. At the 2022 BEI National Conference in a session titled, “Recipes for Success: Pricing Strategies,” attendees heard four different takes on pricing based on each presenter’s practice specialty and preference. 

Terry Staley, CPA with MarksNelson, offered his informal method to charging fees: The estimated total cost of the comprehensive Exit Plan is given using the BEI fee estimator tool, which typically falls within the $30,000 range based on his location and clientele.

His team then charges consultative fees by the hour as they complete different phases of the plan. In Terry’s opinion, “If you bring excellent service and provide a tangible value, you can charge what you feel is fair, whatever that might be.” 

At the end of this session and along those same lines, BEI Founder John Brown posed the quote: “Value-based pricing is customer-focused, meaning that it is done based on how much the customer believes the planning is worth.” 

Whichever strategy you decide best suits your practice, it is key to find a satisfactory pricing strategy that ultimately provides value to your clients. 

Business Owner Feedback to Fees

Regardless of your chosen pricing method, how do you manage fee aversion from your clients? 

1. Be transparent. Being honest about what exactly an owner is getting and what deliverables are included in the engagement letter or other signed agreements helps to manage client expectations. 
2. Research your audience. As with any aspects of consulting or advisory services, knowing your target audience is key to proposing an appropriate fee. Considering geographic location, business size, and annual revenue, among many things, can help determine an applicable, yet competitive strategy. 
3. Understand their resistance. While you have justifications for your method of charging fees, it’s helpful to keep in mind why each client might prefer one strategy vs. another. It may be that having a monthly retainer helps keep the owner accountable for Exit Planning tasks, or they might appreciate paying per project if their timeline spans several years. 

Pose Your Price as an Investment 

Understand & Articulate Your Value

What is more important than the actual fees you charge is the relationship that you are building and forming with your clients. Your unique value proposition as an Exit Planning Advisor is to help your owner clients get out of their business when they want, with the money they need, transitioning to whom they want. 

Therefore, it isn’t about justifying a price for the amount of work you will do, it is about allowing the business owner to place a value on the benefits they receive. You are selling a solution. 

Put the Price in Perspective for Your Client 

Simply put, if you are saving or making your client money, there will be no need to justify your fees. But, providing excellent service, tax savings, improved cash flow, higher price of sale, etc. sometimes still does not add up for them. 

It may be helpful to relate your cost to a common expense in order to give perspective. “The cost I am proposing for your comprehensive Exit Plan is less than the salary of your personal assistant or office cleaning staff.” 

Or, you could also relate your fees to your client’s revenues: “The investment of $15,000 for your Exit Plan is only one half of 1% of your gross revenues.” 

Every business owner has a different mindset, but posing your price as an investment helps to promote peace of mind as they prepare for the transition of their business. 

BEI Tools 

Due to the complex nature of charging fees, BEI offers several tools to Members to assist with this undertaking. 

BEI Fee Estimator Tool 

This tool is a 10-question assessment that generates a proposed fee based on the answers. Once you input information (i.e, company’s gross revenue, number of employees, etc.), the tool suggests a fee based on the complexity of the recommended Exit Plan.  This tool provides the total proposed for the complete, comprehensive Exit Plan. It is then up to you as the advisor to come up with a strategy that works for both you and your client, as well as determine additional fees for implementation based on your client’s needs. 

Engagement Proposal Letter 

Sending a formal, detailed proposal letter is an important factor in engaging and retaining clients. Using this tool to map out all that you will be providing is crucial in your client understanding what they are paying for. BEI has several templates created that you can customize for each client based on what deliverables you plan to offer. 

PlanIt Recommendations:

Lastly, BEI Members with a Planning or Full License are familiar with the outputs received using the PlanIt software. Each recommendation is based on a values-based goal of the business owner and can be used as line-item deliverables within your engagement proposal letter.