If you’re in the process of transferring your business to another advisor, you need to ensure that clients are comfortable with the process in order for it to go smoothly.
In fact, without a proper succession plan, clients often feel abandoned by their original advisor, says Lloyd Williams, an executive coach with lloydwilliamsinc.com in Lunenburg, N.S. If clients are angry with you because the change was unexpected they will often take it out on the new advisor by leaving — and a transition that was successful initially could fall a part six to nine months later.
Follow these steps to make the transition of your advisory business to another advisor successful:
> Define your roles
Clearly outline roles for yourself and your successor to avoid confusing clients.
This is especially the case if you are planning to stay on with the business for a time, in fact, it’s important that you have clearly defined roles and responsibilities and that clients understand what those are, says April-Lynn Levitt, a coach with the Personal Coach in Calgary.
Otherwise, warns Levitt, clients may never view the new advisor as their advisor and won’t seek advice from him or her.
> Look for similarities
For a smooth transition, your successor’s personality should be similar to your own, says Williams.
“If one is analytical the other has to be analytical,” he says. “If one is more social the other needs to be more social.”
Clients work with you because they like and trust you, he says, and you want them to feel just as comfortable with their new advisor.
> Give an endorsement
Make clients comfortable with the transition by properly introducing your successor.
You need to “pass the baton” to the new advisor, says Williams. This means setting up conference calls with your top 50 clients that include your successor. During that call, introduce the new advisor and explain why you think he or she will work well with your clients.
You should also send a letter to your remaining clients explaining the changes and why you support the new advisor, he says.
> Keep in contact
Constant communication with clients is vital for a successful business transition.
The advisor taking over the business should reach out to his or her new client base at least once a month, says Williams. The advisor can do conference calls, newsletters, podcasts or other forms of mass-market communication to stay top of mind.
Watch for Part 2 on Monday
Tips for for taking over a business and how to keep your existing practice running smoothly.
IE
