A Good Succession Plan's Main Ingredient: Growth

For a financial planning practice, a healthy lifecycle includes at least two growth spurts, say advisors in the know. The first one, ideally, takes place right after the firm launches. The second should happen when the founders are ready to cash out and leave their practice in new hands.

Client and revenue growth are “absolutely necessary if a succession plan is going to work,” says Marjorie Fox, founder of Reston, Va.-based Fox, Joss & Yankee, which has $400 million in assets under management. Fox left E.F. Hutton decades ago to start her own business and remembers slogging along as rainmaker in chief to build her roster. “We did it the old-fashioned way: one client at a time,” Fox recalls.

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