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The Role of a Financial Advisor

Why you need a professional even if you don’t think you do!

A common conversation with business owners:

BizOwner: I need the business to be worth $X when I sell it.

ME: Why?

BizOwner: Because that’s what I need to retire.

ME: Oh, that must be what your financial advisor told you?

BizOwner: I don’t have a financial advisor.

ME: Why not?

BizOwner: Because most of my net worth is tied up in the business.

ME: Why should that matter?

BizOwner Because I don’t have assets for them to manage.

ME: Do you understand what a financial advisor does?

This conversation exposes a misconception we hear frequently. Many business owners assume they don’t need a financial advisor or certified financial planner (CFP) because the bulk of their net worth is tied up in their business. This could not be further from the truth. Even if the owner doesn’t have tons of liquid assets (cash, stocks, bonds, etc.), a good financial planner can help them understand what will be needed to retire with the current or planned lifestyle.

Many times, they will provide this service for free. However, don’t be alarmed if one charges a nominal fee for this service because a good financial plan is worth every penny! It’s so important for business owners to understand what they will need in retirement, and the sooner they can get that number the better. They need as much time as possible to build the value of the business to meet their future retirement needs!

A CFP may also help craft and fund retirement plans and non-qualified employee benefits for the business. Post transition, they can help develop a plan to protect wealth, which ensures that it lasts as long as the business owner does.

Many CFPs also provide certain types of insurance. Once upon a time, you needed to have different advisors for wealth management and insurance. Now, the lines are somewhat blurred between the two of these professions. Make no mistake, each function is important in crafting your desired outcome, but both roles may be filled by the same person. Just like a CFP, a qualified insurance professional can design retention and incentive programs for key employees, assist in non-qualified deferred compensation plans, and fund buy-sell agreements with existing owners.

So, if you have a financial planner, it makes sense to review the financial plan with them at least annually. And, if you don’t already have a great financial planner, reach out to me and I’ll be happy to refer you to a trusted financial planner who will take good care of you!

And remember, we’re here to help. If we can help you in any way don’t hesitate to reach out!

Want to hear from a financial advisor? Check out our podcast:


Tom Bronson is the founder and President of Mastery Partners, a company that helps business owners maximize business value, design exit strategy, and transition their business on their terms. Mastery utilizes proven techniques and strategies that dramatically improve business value that was developed during Tom’s career 100 business transactions as either a business buyer or seller. As a business owner himself, he has been in your situation a hundred times, and he knows what it takes to craft the right strategy. Bronson is passionate about helping business owners and has the experience to do it. Want to chat more or think Tom can help you? Reach out at or check out his book, Maximize Business Value, Begin with The Exit in Mind (2020).

Mastery Partners, where our mission is to equip business owners to Maximize Business Value so they can transition their business on their terms. Our mission was born from the lessons we’ve learned from over 100 business transactions, which fuels our desire to share our experiences and wisdom so you can succeed.

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