As a financial professional, you understand the importance of planning for your clients’ futures. But have you taken the same care in planning for the future of your own business?
For years, experts have been talking about the importance of having a written and actionable succession plan. Despite this, statistics show that most financial professionals have no concrete plan in place for what happens if they are suddenly unable to work—or even when they retire.
The Shocking Reality: Most Advisors Are Unprepared
A 2021 study by Environics found that only 11% of Canadian financial professionals have a formalized succession plan. Even more concerning, 75% had only a rough idea or no plan at all. Meanwhile, nearly 70% of advisors surveyed say they are nearing retirement.
The absence of a continuity plan isn’t just a personal issue —it’s becoming a regulatory concern. Business continuity is coming up more and more amongst regulators, with some having already introduced requirements, making it more critical than ever for independent financial professionals to take action.
The Looming Advisor Shortage: A Call to Action
In a recent blog post, Roland Chan, Founder & CEO of FindBob, highlights a pressing issue: the industry is projected to face a significant shortage of advisors over the next decade. With an aging workforce, fewer new entrants, and a growing demand for human financial advice, this talent gap poses a significant challenge to the sustainability of financial businesses, making continuity planning even more urgent.
If You Don’t Have a Plan, Now Is the Time
If you are among the 75% of advisors without a structured plan for your business, your staff, and your clients, now is the time to act. Whether you plan to retire in the next few years or simply want to ensure your business is protected in case of unexpected events, having a succession plan is essential.
So, where do you start?
Developing a formal continuity plan may seem daunting, but there are tools and resources available to help. IFB offers a valuable tool to help prepare for the future: Coming Up Next. This free-for-members exclusive platform helps financial professionals create a personalized succession and continuity plan with step-by-step tools, and a marketplace to connect with other independent advisors looking to buy, sell, partner, and more.
You can also learn more about these strategies to future-proof your business by attending Roland Chan’s upcoming webinar on March 19: Perpetuating Growth: Tools and Strategies for Building a Thriving Financial Practice.
Taking the time now to secure your business’s future will benefit you, your clients, and your family. Don’t wait until it’s too late.
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