Financial Planner vs. Business Exit Planner: What’s the Difference?, with Bill McDermott, Host of ProfitSense
In a commentary from a recent episode of ProfitSense, Bill McDermott, The Profitability Coach, offers an insightful comparison between a financial planner and a business exit planner, emphasizing the significance of both for entrepreneurs.
Bill’s commentary was taken from this episode of ProfitSense.
ProfitSense with Bill McDermott is produced by John Ray and the North Fulton affiliate of Business RadioX® in Alpharetta.
Transcript
Financial planner versus business exit planner: what’s the difference? And why you need both? I want to talk a little bit about this. Imagine you’re the proud owner of a thriving business. You’ve spent years building it up from scratch, late nights, early mornings, and more coffee than any human should consume.
Now as you’re starting to think about the next chapter, you realize there’s more to this story than just putting your feet up on a tropical beach. Enter the financial planner and the business exit planner, two professionals who play very different roles in your entrepreneurial saga.
Your financial planner is like Dr. Watson, a Sherlock Holmes sidekick. Steady, reliable, and keeping everything in order while you solve the mysteries of your business. But when it’s time for a big complex sale like selling your business, you bring in the business exit planner. The Sherlock Holmes of the operation to crack the case and get you the best deal.
Here’s some positives and drawbacks for each. The financial planner, they see the big picture in all aspects of your financial life, not just the business. They help with your personal goals, everything from retirement to that dream vacation, and they’re with you for the long haul, adjusting your plan as life changes.
However, while they’re great with personal finance, they may not be as sharp on the business side. They have a wide range of knowledge and skills, but they may lack depth in complex areas like business exits. The Business Exit Planner. They know the ins and outs of selling a business, can maximize its value.
They have focused expertise, meaning they’re laser focused on your exit strategy and help keep you from leaving money on the table. They help you craft a plan tailored specifically to your business timing and goals. On the flip side, they have a more narrow scope, meaning they’re all about the business exit and less about your overall financial health.
Lastly, timing is key. A business exit planner is useful when you’re ready to exit, but not much help before that. It’s all about knowing when to call in the right expert. Your financial planner is essential for keeping your financial house in order throughout your business journey, but when it’s time to sell, the business exit planner ensures you leave on top.
In our story, using both advisors meant the business owner didn’t just retire to that tropical beach.
They bought it.
