“Do Not Smoking” signs are scattered all over Nicaragua. The intent is there and we understand the purpose, but the execution is not quite right.
Oddly enough, this misunderstanding is similar to how financial advisors often conduct business.
I find that financial planners have a PRACTICE, but not necessarily a business.
A practice is something that an individual enjoys; something they are good at which leads them into thinking they should turn it into a business.
Many doctors and lawyers have a practice. They are good at practicing medicine or being an attorney but don’t have the slightest idea of how to run an actual business.
Financial advisors are the same way. They often begin by going into the business as investment managers who create plans or as asset gatherers who enjoy dealing with people.
Unfortunately, running a business takes a lot more than just intent. You also need to be able to sell, look after the financials and run the operations efficiently to avoid getting inundated by the little tasks of providing a service.
This is why we created AUM in a Box: to implement the idea and bring the sales, operations and financials together so that individuals with a practice could create a business.
There are numerous benefits of converting a practice to a business. One is that you are left with an entity that you can sell once you are ready to retire. Second is that you have an establishment that can run smoothly even if you are not there. Last, a well-run business provides growth, which can allow you to do the things you want and leave the small tasks to others who can handle it better.
Having a “do not smoking” sign is cute and we get the point, but it’s important to realize your intention is not to maintain a practice. Rather, it is to create a business that functions and succeeds as you see fit so that you can continue to do the things you love.