Fees…they are all around us. Some are more easy to accept than others.
A great example of fees that carry more benefit than others is fees for business planning advice.
Here at Consolidated Planning, we offer a process that provides the framework to uncover opportunities, maximize results, and put you on a solid path to achieving all that is important to you. We know that it takes the right strategy to get you there.
In this article, we’ll share why solutions shouldn’t be product heavy and five reasons a fee-based scenario can actually be in the benefit of a business owner.
What Fees Will You Be Charged For Business Planning?
Planning for your business is not a one size fits all approach. And neither are the fees you may encounter for this planning. Between your unique personal and professional goals, your industry, and your challenges, your solutions need to be UNIQUE as well. Now, different problems have different solutions.
Or at least they should.
Without charging fees, the solutions for business owners become very product heavy. If a salesperson has a particular product or service they’re looking to push, they look for “problems” for which their “solution” makes sense.
Because every business and business owner, to some extent, is unique, problems and opportunities should be uncovered during a discovery meeting and can yield chances for a working relationship in a number of areas including:
- Personal planning for the owner
- Strategies for an exit on an internal sale
- Deferred compensation arrangements
- Brokering of insurance products for group insurance
- Asset management
This is just scratching the surface. Charging fees allows your advisor to take that consultative approach in all that is unique to you and your exact situation.
5 Reasons Fees Make Sense For Business Owner’s Planning Needs
#1 Transparency and Trust
One of the primary advantages of fee-based business planning advice is transparency. And with so many moving parts in and out of your business, transparency is a necessary piece to that puzzle.
By clearly outlining the fees associated with advisory services upfront, you can make informed business decisions without the ambiguity of hidden costs or conflicts of interest. This transparency builds trust between advisors and clients, laying the foundation for a collaborative partnership focused on achieving all that’s important to you. Whatever that may be.
#2 Customized Solutions
Unlike commission-based models, where advisors may prioritize products with higher commissions, fee-based advisors are incentivized to provide tailored solutions that align with the unique needs and goals of your business.
This customization ensures that the business planning advice is not only comprehensive but also relevant and actionable, driving tangible results for your business.
#3 Holistic Approach
Like we mentioned earlier, business planning encompasses various facets, including financial planning, strategic development, risk management, and succession planning, among others. Advisors who choose to charge a fee for their services most likely take a holistic approach to business planning. Considering all of these aspects in tandem creates a comprehensive roadmap for your business goals.
This integrated approach ensures that your business’ short-term objectives are aligned with its long-term vision, fostering sustainability and resilience for you, your family, and your employees, in an ever-evolving market landscape.
#4 Objective Guidance
By decoupling compensation from product sales, fee-based advisors are better positioned to provide objective guidance that prioritizes your best interest. Freed from the pressures of product-driven incentives, advisors can offer unbiased recommendations and strategic insights that are solely focused on maximizing value and mitigating risks for the business.
#5 Long-Term Alliance
Planning for your business is not a one-time event but an ongoing journey characterized by your business landscape, evolving goals, and market dynamics, to name a few. Fee-based advisory relationships are built on the premise of long-term strategic alliances, where advisors are committed to supporting you and your business at every stage of that entrepreneurial journey.
For business owners, this sense of long-term planning fosters trust, continuity, and peace of mind, knowing you have a trusted advisor by your side to navigate business planning. No matter how complex it may get.
Start Planning To Maximize Your Business Today
Since your business is likely the largest asset on your balance sheet, you can’t afford to NOT plan for your business. With the right solutions for your business, you can actually maximize your business value and better position your business for its ultimate sale. No matter how far off that may be.
In your business, there are often two buckets when it comes to costs – fixed costs and variable costs. Those fixed costs, like fees for business planning advice, actually make running your business more predictable.
And we know business owners could use a little more predictability.
For a more predictable future, talk with an experienced business planning professional at Consolidated Planning.
2024-178906
Exp. 7/2026
Guardian, its subsidiaries, agents and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation. The information provided is based on our general understanding of the subject matter discussed and is for informational purposes only.
This material contains the current opinions of Mike Dare and Consolidated Planning only. These are not the opinions of Park Avenue Securities, Guardian, or its subsidiaries.
