7 Tips to Increase the Value of Your Business

7 Tips to Increase the Value of Your Business While you work relentlessly to take care of your clients and build a successful practice, it’s important to know how practices like yours are valued, what factors impact your value the most and what areas to focus on. Knowing these vital value drivers and detractors is also key to improve processes, gain efficiencies and on-board new clients. In this webinar, we will discuss the 7 most important tips to increase the value and get the most out of your practice when the time comes. https://youtu.be/Gzsu_QQ1BZg

Three Ways to Build Value in Your Advisory Practice

As an advisor, you provide tremendous value to your clients every day. But, what is often overlooked in the advisor-client dynamic, is the value they provide to you. That is, beyond the fees or commissions they pay you for your service, products or advice, your clients are providing you “value.” By that, I mean that your book of business (your clients) has a very real and tangible value that you can monetize some day when you are ready to exit the industry.

10 Reasons to Value Your Practice

Download the Infographic Please enable JavaScript in your browser to complete this form.Please enable JavaScript in your browser to complete this form. Name * FirstLast Phone Work Email *How Did You Hear About SRG? *— Select Choice —ConferenceDirect MailExisting/Past ClientGoogle AdWordsOtherReferralSocial MediaSeminar/WorkshopWebinarWebsite Download Is Business Valuation worth the hassel? Over the next 10 years, 4.5 million businesses with over $10 trillion in value will need to transition to new hands. A major source of this shift is the retirement of baby boomers – 10,000 of whom turn 65 every single day.  Whether you are exiting or buying an advisory business, download the infographic to see the 10 reason why you should value your business annually. DOWNLOAD NOW

Are YOU Hurting the Value of Your Business

There are many complicated facets to running a service-based business, but the most vital component are the relationships you build every day. These relationships are the basis of value, and, for most, your business is your largest and most valuable asset. The most frequently discussed factors that impact the value of your business are profitability, how consistent your revenue is and the growth rate of the practice.

Maximum Sales Value: The Role of Compliance in the Great Advisor Cash Out

This article was originally published by the National Ethics Association and E&O for Less on February 26th, 2016 and written by Harry J. Lew, NEA Chief Content Officer.

Revenue Sharing: Variable Comp and Your Value

We recently spoke with an advisor who generated $10.5 million in annual revenue and was contemplating the sale of his business. Like many, he expected a premium sale price/valuation given the size of his operation, his radio show that generated a consistent stream of new business, and being located in a very desirable market. Surely his business was worth the $30 Million he was expecting, right? The unfortunate part of the story is that, even though he had built a large “enterprise” and was the sole owner, he compensated all of his employees on an eat-what-you-kill (EWYK) model paying them a percentage of gross revenue for the book they serviced, leaving only a fraction of the total gross revenue to the owner (approximately $500K annually). Not exactly what you would expect from a $10.5 million business and would make a $30 million asking price seem ludicrous given the free cash flow.

Building a More Valuable Practice – Tip #3

Tip 1  |  Tip 2  |  Tip 3  |  Tip 4 Growth is King One of the most important drivers of value in any business is growth. Historical growth, while no guarantor, is a useful proxy/tool for projecting a business or asset’s ability to produce revenue in the future. As a buyer, you will pay more for a practice that is growing each year than one that is getting smaller. One of the biggest mistakes advisors/reps/agents make is waiting too long to sell their businesses, often having contemplated selling for several years before they finally made the decision. By the time many decide to actually sell the business, they have been coasting for a few years, causing their growth to stall or even decline – making it a suboptimal time to sell. For financial service practices, growth of the business can happen in three specific ways. Anyone contemplating selling their business, or a buyer looking at practices to acquire, should pay attention to the following growth metrics.

Building a More Valuable Practice – Tip #1

Tip 1  |  Tip 2  |  Tip 3  |  Tip 4 There are many ways to grow your practice – the most obvious being adding more revenue, more assets and/or more clients. The most valuable businesses in the industry however focus on building value in their enterprise every year, in addition to growing the revenue/asset base. There is a long list of recommendations that we would make as your succession/valuation consultant and the easiest way to understand these recommendations is to look at your business from a buyer’s perspective. When a buyer evaluates a business for purchase, there are many items reviewed in due diligence that drive or detract from the value, including the revenue sources, growth rate, age of the clients, location of clients, client service process and many others. Here is our first tip in this series of how to Build a More Valuable Practice: