One of the most important things you can do before your retirement is to plan a practice and business transfer. It is vital to plan your own business while also planning a financial future for others.
A practice transfer involves a sole producer, who eventually drives all revenues and owns the practice. A business transfer involves a business with multiple associates, who drive and increase the value of the business. These associates can be agents, a potential buyer from a new agent program, licensed CPAs, banker and a marketing or administrative assistant.
Although I started planning six years prior to the sale of my practice, I suggest a written business plan should be prepared at least five years before your target transfer date. Within five years, you will be able to recruit, mentor and support your successor. If done properly, your succession plan can be beneficial to your associates, clients and most importantly, you.
