Begin with the End in Mind: Planning Your Advisory Business for the Future

On a recent episode of the WomenShare podcast, Erin Botsford of The Advisor Authority shared a powerful insight: Financial advisors should think of their practice not just as a practice, but as a business.

It’s a distinction that makes all the difference.

In my career, I've been involved in integrating nearly 60 advisory firms into a larger organization. I’ve seen firsthand how business owners approach the end of their careers—some with intention, others scrambling to figure things out too late. Whether your goal is to build a business with long-term enterprise value or simply sustain a lifestyle practice, the key is to begin with the end in mind.

Here are some essential considerations for financial advisors as they think about their long-term business strategy.

Option 1: The Lifestyle Practice

Some advisors love the work and intend to keep serving clients until the day they retire. They aren’t focused on selling their practice—they simply plan to wind it down when they’re ready. If that sounds like you, here’s what to consider:

1. Focus on Simplicity, Not Scale

If you don’t intend to sell, you don’t need to build infrastructure for future growth. Instead, keep your operations lean, minimize unnecessary overhead, and structure your client base so that you’re only serving the people you truly want to work with.

2. Plan for an Orderly Exit

Just because you aren’t selling doesn’t mean you can ignore succession planning. What happens to your clients when you’re done? A plan to refer them to another advisor or firm when the time comes can help ensure a smooth transition for them—and a professional and ethical exit for you.

3. Keep Compliance in Check

If you’re winding down rather than selling, make sure you understand the regulatory steps required for closing your firm. There are compliance and client communication requirements to consider, so don’t leave this until the last minute.

Option 2: Building for Sale

If your goal is to sell your practice or firm one day—whether to a larger firm or another advisor—you need to build it with value in mind. A business with strong enterprise value isn’t just about revenue; it’s about scalability, structure, and sustainability beyond you.

1. Build a Business, Not a Job

The biggest mistake I’ve seen advisors make is structuring their practice in a way that relies entirely on them. If your business falls apart the moment you step away, it’s not a business—it’s just you, working a job. To create value, build a team, establish repeatable processes, and ensure that client relationships aren’t dependent on you personally.

2. Document and Systematize Everything

Buyers want to see a business that runs smoothly. Invest in CRM systems, workflows, and documented processes so that the transition to new ownership is seamless. The more you can show that the business operates independently, the more valuable it will be.

3. Diversify Revenue Streams

If your revenue is concentrated in just a few key clients, or if it’s heavily reliant on commissions rather than recurring fees, your practice may be less attractive to buyers. Consider shifting toward fee-based revenue and a broader client base to improve long-term value.

4. Create a Strong Client Transition Plan

One of the biggest risks for buyers is client retention. If all of your clients are personally loyal to you, rather than to the firm itself, a buyer may see that as a red flag. Start introducing clients to junior advisors, emphasizing team-based service, and setting expectations early about how your firm operates beyond just you.

When Should You Start?

The short answer? Now.

Whether you’re planning to sell in five years, ten years, or simply retire and close your doors, the best time to start thinking about your exit strategy is long before you need it.

If you’re five to ten years out, start making structural changes now—building a team, systematizing processes, and shifting client relationships beyond just you.

If you’re less than five years out, focus on maximizing value in the short term. Ensure financials are clean, contracts are clear, and your operations are buyer-ready.

If you’re a year or two out and haven’t started yet, you’re not out of luck, but you may need to move quickly. Prioritize client transition planning, get financials in order, and work with a consultant who can help you prepare for a sale.

What's Your Endgame?

There’s no right or wrong answer when it comes to the future of your advisory practice—only the answer that’s right for you. Whether you envision a long and fulfilling career as a solo practitioner or a strategic sale that maximizes the value you’ve built, the key is intentionality.

Erin Botsford’s advice is worth repeating: Begin with the end in mind. The choices you make today will define the opportunities you have tomorrow.

So, where do you want to end up?