ExitSmarts has brought to market what Scott Snider of EPI calls a “Practice-in-a-Box,” which means that the system is so complete that it can be dropped into a practice, regardless of discipline, and the firm will have everything it needs to provide transition services to its Business Owner clients. Does that mean that the firm will be operating at full speed immediately? No, of course not, but it will have the flexibility to evolve toward full speed at pace with which its comfortable.
The Practice-in-a-Box can be symbolically illustrated as a tree with branches dedicated to each of its fundamental components. Each branch makes a unique contribution to the health and prosperity of the tree.
Business Owner Awareness – This phase focuses on what the Business Owner knows and doesn’t know, both of which inform a successful transition plan and eventual business transition. The Awareness phase is driven by a 31-question Business Readiness Assessment and two fundamental surveys – Foundational Objectives (Business, Financial, and Personal) and Business Continuity Instructions. Awareness is closely aligned with the practice’s business development. As the Owner’s awareness increases, the firm’s influence and ability to generate revenue increases with it.
Transition Plan Development – A successful transition is dependent upon a solid, well-conceived plan, regardless of the Owner’s intended transition horizon. ExitSmarts Transition Plan Development includes a ten-step process that takes three to four months to complete and results in a written plan with detailed action items for all stakeholders. Throughout the development of the plan, activity is continually focused on finances, stakeholder alignment, a meaningful indication of the value, and the Owner’s foundational objectives.
Increased Business Value – Implementing the transition plan includes a series of technical steps that consider legal and tax issues, as well as activities designed to de-risk the business, or make it more attractive to a wider range of potential buyers. But the primary focus of implementation is increasing the value of the business by addressing areas of improvement that will drive a higher sale price. Throughout the process of value enhancement, the Owner is presented with regular options to either transition out of the business or continue to improve its value.
Processes and Tools – The three phases of the ExitSmarts Practice-in-a-Box are supported by a complete set of processes and tools that help the Advisor and Business Owner ensure that every eventuality is covered. Very few transitions will require all the processes and tools that ExitSmarts provides, but they’re available if needed. The ability to pick and choose the functionality required to support a specific transition is one of the most important features of the Practice-in-a-Box for all stakeholders.
Workflow Automation – The Practice-in-a-Box is not software, it’s a system powered by a workflow automation tool called Smartsheet. Each practice has it own dedicated workspace in Smartsheet, and each transition is tracked independently, so security is never an issue. All processes and tools are included in workflow automation, as delivered to the practice, giving the Advisor access to a step-by-step roadmap for all activity. Relevant forms are attached to steps where required. Smartsheet provides the simplicity, guidance, and consistency required to track all activity.
Quarterback/Coach – In the ExitSmarts world, business transitions are guided by a quarterback or Coach. We call them Business Transition Coaches. A Coach will always want to maintain influence with his or her Business Owner client but may not want to do all of the work required for a successful transition. We give Coaches the option of choosing the amount of work they can do, want to do, or are legally permitted to do. ExitSmarts does the rest, either with its own internal resources or by referring work to our community of transition specialists.
FLEXSourcing – Firms in various disciplines see Business Transition as a valuable addition to their list of Advisory Services. On one end of the spectrum are firms that want to do everything for their Business Owner clients; on the other end are firms that want to outsource everything to the ExitSmarts community. FLEXSouricng supports every scenario, allowing each individual firm to adopt the Practice-in-a-Box in the way and in the timeframe that make the most sense for its business model.
ExitSmarts Specialist Community – The ExitSmarts community of Business Transition Coaches includes Advisors from various disciplines – Wealth Managers, Financial Planners, Accountants, Business Brokers, Value Advisors, and others. Coaches exchange referrals as required to ensure that the appropriate resources are applied to each business transition opportunity. During regular monthly town halls, they also trade information about working with their clients – what works and what doesn’t – and things they would like to see added to the Practice-in-a-Box.
In summary, the eight components of the ExitSmarts Practice-in-a-Box comprise a holistic system that Advisors in the ExitSmarts community use to help their clients drive successful transitions. As indicated, some of the components are processes, some are tools, and some are people. One is not more important than the others. To the contrary, they work together to create something much greater than the sum of its parts.
