7 Ways to ‘Future Proof’ Your Independent Financial Planning Practice

While positive steps have been made across the financial advisor industry, far too many independent practice leaders continue to neglect the challenging but critical process of succession planning.

That was the starting thesis shared by an experienced duo of advisory firm leaders during a recent XY Planning Network webinar dedicated to the topic of “future-proofing” financial planning practices. According to Michelle Smalenberger, a partner and certified financial planner at Financial Design Studio, and Patricia Jennerjohn, CFP and managing partner at Focused Finances, succession planning is not something any responsible practice leader can forgo.

As Smalenberger and Jennerjohn emphasized, the creation of a clear and actionable succession plan is key to any firm’s long-term success. Some of the benefits of a well-crafted plan include increased business valuations, clearer talent onboarding processes and general peace of mind with respect to unanticipated emergencies or disasters.

And take note: The succession planning process is not just something that concerns firm leaders who are nearing the end of their own careers. Instead, succession plans help firms to codify and quantify the client experience, and they present an opportunity to engage employees in ways that motivate them to provide excellent client service and increased ROI.

With such benefits in mind, see the gallery for seven key succession planning tips shared by Smalenberger and Jennerjohn. As the pair of planning experts stressed, no advisor professional can afford to avoid what often feels like “end-of-firm” planning. Instead, firm leaders should feel empowered to pursue the steps necessary to develop and implement the right succession plan for themselves, their business and their clients.

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