Financially Simple - Business Growth to Sale Justin Goodbread

As a financial advisor, it is possible to set your firm up in such a way that the eight-figure exit is possible. But simply trying to take on more clients as a primary means of growth could be a recipe for disaster. Instead, developing and implementing a system of KPIs could be the answer. KPIs or Key Performance Indicators can provide important insights into the health and direction of your firm.
 
In this episode, I discuss some of the many KPIs you could choose to explore within your finance department. I also talk about the importance of keeping your KPI tracking simple, and getting your team involved. With the correct KPIs, you could generate increased buy-in from your team while also driving more efficiently toward your objectives. You don't want to miss this episode!
 
This week on The Financially Simple Podcast: 
 
(2:45) How do we determine if we made the right decision?
(5:55) What are the KPIs that RIAs need to track?
(7:56) Financial KPIs common to the financial world
(12:20) Create a system
(15:58) Use KPIs to modify behavior
(16:30) A strong KPI system provides a bottom-down approach and a top-down view
(18:04) Conclusion
 
Our Favorite Quotes: 

"What gets measured gets improved." - Peter Drucker
 
"You've got to address the fact that building KPIs, tracking KPIs, and examining KPIs is an investment of time and resources." - Justin Goodbread
 
About The Financially Simple Podcast 
 
If you are looking for a podcast that speaks directly to the challenges and puzzles of running a business, you’ve come to the right place. The Financially Simple podcast was built for you. With over 400 episodes and counting, our host Justin Goodbread covers a broad range of topics, from starting a small business, to prepping it for sale, to growing your personal wealth. Justin’s combination of analytical skills, tough love, and a healthy dose of experience delivers practical ideas that will benefit business builders at every stage of their business journey.  
 
If you have questions, or comments for Justin, submit those at: https://financiallysimple.com/ask-justin/ 
 
Connect with Justin:
Financially Simple newsletter 
Facebook 
LinkedIn 
Twitter 
 
Subscribe Here:
Apple Podcast 
Spotify 
Google Podcast 
iHeart Radio 
Stitcher 
 
Let us know your thoughts about the show - please leave a review on iTunes to help others discover the podcast. 
 
Financially Simple is a division of WealthSource Partners, LLC (“WSP”), which offers investment advisory and financial planning services. All investing involves risk of loss, including the possible loss of principal. Past performance does not guarantee future results and nothing in this podcast should be construed as a guarantee of any specific outcome or profit. All market indices discussed are unmanaged, do not incur management fees, costs and expenses, and cannot be invested into directly. Business planning services offered by WealthSource Business Advisors, LLC (“WBA”).
 
This podcast is distributed for informational purposes only. The content of this podcast represents the views and opinions of Justin Goodbread and/or the podcast’s guests and do not necessarily represent the views and/or opinions of WBA, WSP or their affiliates or representatives. Statements made in this podcast are subject to change without notice. Neither WBA, WSP or their representatives, the podcast’s hosts or its guests have an obligation to provide revised statements in the event of changed circumstances. Statements made in the podcast are not to be construed as legal or accounting advice or as personalized advice of any nature. Listeners should conduct their own review of any statements made or strategies discussed and exercise judgment or consult with their own professional advisor to see how the information contained in this podcast may apply to their own circumstances.

Whether you're an established RIA or just starting, understanding which of your services is the most profitable can be a game-changer for the growth and direction of your firm. However, you must also view your services through the greater context of Client Lifetime Value (CLV). This simple metric could change your whole perspective when it comes to your profitability by service.
 
In this episode, I dive deep, looking at the many layers that determine each practice's best pathway to profitability. From the impact of CLV and time investment to direct and indirect expenses that could be eating into your profits, this episode will help you discover whether you're firm is truly focused on its most profitable services. Finally, I'll give you some practical tips for changing course, should you determine you've been heading in the wrong direction.
 
This week on The Financially Simple Podcast: 
 
(1:13) The Productivity Paradox
(4:27) Define Your Success
(6:34) Resources Allocated Per Service
(8:34) Concentration Risk
(10:05) Lifetime Value for Each Offering
(12:11) Average Revenue Per Client
(13:11) Direct Cost Per Service
(14:52) Time Per Service
(23:02) Begin Implementing
 
Our Favorite Quotes: 
 
"Why can't we be profitable with each offering? If we're going to make an offering, do we really want it to lose money?" - Justin Goodbread
"Implementing a strategy is going to cost you. It's going to cost you money. It's going to cost you time." - Justin Goodbread
 
About The Financially Simple Podcast 
 
If you are looking for a podcast that speaks directly to the challenges and puzzles of running a business, you’ve come to the right place. The Financially Simple podcast was built for you. With over 400 episodes and counting, our host Justin Goodbread covers a broad range of topics, from starting a small business, to prepping it for sale, to growing your personal wealth. Justin’s combination of analytical skills, tough love, and a healthy dose of experience delivers practical ideas that will benefit business builders at every stage of their business journey.  
 
If you have questions, or comments for Justin, submit those at: https://financiallysimple.com/ask-justin/ 
 
Connect with Justin:
Financially Simple newsletter 
Facebook 
LinkedIn 
Twitter 
 
Subscribe Here:
Apple Podcast 
Spotify 
Google Podcast 
iHeart Radio 
Stitcher 
 
Let us know your thoughts about the show - please leave a review on iTunes to help others discover the podcast. 
 
Financially Simple is a division of WealthSource Partners, LLC (“WSP”), which offers investment advisory and financial planning services. All investing involves risk of loss, including the possible loss of principal. Past performance does not guarantee future results and nothing in this podcast should be construed as a guarantee of any specific outcome or profit. All market indices discussed are unmanaged, do not incur management fees, costs and expenses, and cannot be invested into directly. Business planning services offered by WealthSource Business Advisors, LLC (“WBA”). 
 
This podcast is distributed for informational purposes only. The content of this podcast represents the views and opinions of Justin Goodbread and/or the podcast’s guests and do not necessarily represent the views and/or opinions of WBA, WSP or their affiliates or representatives. Statements made in this podcast are subject to change without notice. Neither WBA, WSP or their representatives, the podcast’s hosts or its guests have an obligation to provide revised statements in the event of changed circumstances. Statements made in the podcast are not to be construed as legal or accounting advice or as personalized advice of any nature. Listeners should conduct their own review of any statements made or strategies discussed and exercise judgment or consult with their own professional advisor to see

As the owner of an independent RIA, you likely wear many hats. You're an advisor to your clients, but you could also be overseeing compliance, accounting, operations, and more. Each of these tasks pulls you in different directions, and most importantly, away from your clients. Even if you are succeeding in juggling each of these responsibilities, doing so still presents a problem... your firm is controlling you!
 
In this episode, I discuss shifting that control back into your hands by hiring a dedicated CFO. I detail what a CFO does for your firm, average compensation in the RIA space, and the education and experience this professional adds to your firm. In addition, I also discuss the importance of looking at your firm's financial health and strategy through an objective lens. You don't want to miss this episode!
 
This week on The Financially Simple Podcast 
 
(1:35) RIAs Who Use a Dedicated CFO
(4:25) Difficult to Raise Fees
(5:26) What does a CFO bring to the table?
(8:50) The Most Important Thing for Me? Analyzing the Key Metrics
(10:26) If You Want to Use a CFO, Where Do You Look?
(12:18) External or Fractional CFO
(14:56) The Pros and Cons of Hiring an Outside CFO vs Hiring an Internal CFO
(16:53) Qualities and Designations to Look For
(21:44) Why Do You Need a CFO?
(24:09) "Complete Objectivity is Not an Option"
(25:13) A Dedicated CFO Decentralizes You
(26:05) An Unbelievable Peace
 
Our Favorite Quotes: 
"When you're focused on growth, and not dealing with the day to day crap that we all deal with, now we're able to take a step back and make decisions that, ultimately, we know we need to make that we just don't want to." - Justin Goodbread
 
"What we can do is reduce our subjectivity - what I call 'I see, therefore it is.'" - Elizabeth Thornton
 
"A dedicated CFO has the ability to dig into the granular details of your firm's finances in ways that you just don't have time to do." - Justin Goodbread
 
About The Financially Simple Podcast 
 
If you are looking for a podcast that speaks directly to the challenges and puzzles of running a business, you’ve come to the right place. The Financially Simple podcast was built for you. With over 400 episodes and counting, our host Justin Goodbread covers a broad range of topics, from starting a small business, to prepping it for sale, to growing your personal wealth. Justin’s combination of analytical skills, tough love, and a healthy dose of experience delivers practical ideas that will benefit business builders at every stage of their business journey.  
 
If you have questions, or comments for Justin, submit those at: https://financiallysimple.com/ask-justin/ 
 
Connect with Justin:
Financially Simple newsletter 
Facebook 
LinkedIn 
Twitter 
 
Subscribe Here:
Apple Podcast 
Spotify 
Google Podcast 
iHeart Radio 
Stitcher 
 
Let us know your thoughts about the show - please leave a review on iTunes to help others discover the podcast. 
 
Financially Simple is a division of WealthSource Partners, LLC (“WSP”), which offers investment advisory and financial planning services. All investing involves risk of loss, including the possible loss of principal. Past performance does not guarantee future results and nothing in this podcast should be construed as a guarantee of any specific outcome or profit. All market indices discussed are unmanaged, do not incur management fees, costs and expenses, and cannot be invested into directly. Business planning services offered by WealthSource Business Advisors, LLC (“WBA”). 
 
This podcast is distributed for informational purposes only. The content of this podcast represents the views and opinions of Justin Goodbread and/or the podcast’s guests and do not necessarily represent the views and/or opinions of WBA, WSP or their affiliates or representatives. Statements made in this podcast are subject to cha

Owning an independent RIA offers many rewards. You get to work with the clients you want to work with, receive a greater percentage of revenue, and as long as you remain compliant, you have autonomy to do things your way. Yet many financial advisors struggle to maximize the greatest reward that owning their own firm has to offer... You hold an asset that has the power to change your financial future!
 
In this episode, I discuss the expense benchmarks for the industry. Similarly, I discuss the impact of how you prioritize spending in your firm, as well as the importance of having financial controls in place. Although I'm speaking directly to financial advisors, many of the principles I cover can be directly applied to businesses across multiple industries. So, don't miss out!
 
This week on The Financially Simple Podcast: 
 
(0:45) The "Eight Figure" Exit
(2:30) Are You Tired of Feeling Broke As a Financial Advisor?
(5:03) A Byproduct of a Lack of Pure Data
(7:35) Moving Away From Brokenness/Facing Contentment
(8:51) Industry Averages
(12:14) How Do You Relate to the Industry Revenue Averages?
(16:25) Identify the Problem
(17:26) Financial Controls
(19:41) At Least, Be Average
(20:43) Monthly Expense Review
(23:48) Get True Data By Outsourcing Accounting & Fee Billing
(24:59) Defined Process/Procedures
(26:25) Begin Forecasting
(28:35) The Results of Implementing Financial Controls
 
 
Our Favorite Quotes: 
"Before you can begin customizing, before you can say, 'Hey, I want an eight-figure exit,' or 'Hey, I want this lifestyle practice where I only have to work X number of hours per month, and I can have X number of revenue,' before you can get there, you have to, at least, be average." - Justin Goodbread
 
"Providing an educated projection of where your company is headed can enable you to make course corrections and strategic moves that drive your business where you want it to be." - Justin Goodbread
 
About The Financially Simple Podcast 
 
If you are looking for a podcast that speaks directly to the challenges and puzzles of running a business, you’ve come to the right place. The Financially Simple podcast was built for you. With over 400 episodes and counting, our host Justin Goodbread covers a broad range of topics, from starting a small business, to prepping it for sale, to growing your personal wealth. Justin’s combination of analytical skills, tough love, and a healthy dose of experience delivers practical ideas that will benefit business builders at every stage of their business journey.  
 
If you have questions, or comments for Justin, submit those at: https://financiallysimple.com/ask-justin/ 
 
Connect with Justin:
Financially Simple newsletter 
Facebook 
LinkedIn 
Twitter 
 
Subscribe Here:
Apple Podcast 
Spotify 
Google Podcast 
iHeart Radio 
Stitcher 
 
Let us know your thoughts about the show - please leave a review on iTunes to help others discover the podcast. 
 
Financially Simple is a division of WealthSource Partners, LLC (“WSP”), which offers investment advisory and financial planning services. All investing involves risk of loss, including the possible loss of principal. Past performance does not guarantee future results and nothing in this podcast should be construed as a guarantee of any specific outcome or profit. All market indices discussed are unmanaged, do not incur management fees, costs and expenses, and cannot be invested into directly. Business planning services offered by WealthSource Business Advisors, LLC (“WBA”).
 
This podcast is distributed for informational purposes only. The content of this podcast represents the views and opinions of Justin Goodbread and/or the podcast’s guests and do not necessarily represent the views and/or opinions of WBA, WSP or their affiliates or representatives. Statements made in this podcast are subject to change

Like many other types of business owners, Independent Financial Advisors are prone to misunderstanding the true potential of their firms. Far beyond a means to a comfortable living,
your firm is your greatest individual asset. As such, you must take great care to grow it, 
maximizing its value in the process.
 
Unfortunately, many financial advisors fall short when it comes to preparing their firm for the ultimate sale. In this episode, I introduce a miniseries aimed at helping IARs unlock the success in their firms. Although I'm specifically addressing financial advisors, don't tune out! The information contained in this series can be applied across many industries, and could help you when hiring an advisor of your own.
 
This week on The Financially Simple Podcast:
 
(1:46) More questions from financial advisors than any other segment
(2:33) Why this information is for everyone
(4:15) One thing that surprises me
(5:41) Who, specifically, am I speaking to?
(9:31) The personality profiles of financial planners
(12:11) The hard conversations
(19:02) How will you be paid?
 
Our Favorite Quotes: 
"If my planner is the most successful person in my life, that means they know what they're doing." - Justin Goodbread
 
"I began implementing the strategies I learned from the Exit Planning Institute in my own business, and I watched my company accelerate." - Justin Goodbread
 
About The Financially Simple Podcast 
 
If you are looking for a podcast that speaks directly to the challenges and puzzles of running a business, you’ve come to the right place. The Financially Simple podcast was built for you. With over 400 episodes and counting, our host Justin Goodbread covers a broad range of topics, from starting a small business, to prepping it for sale, to growing your personal wealth. Justin’s combination of analytical skills, tough love, and a healthy dose of experience delivers practical ideas that will benefit business builders at every stage of their business journey.  
 
If you have questions, or comments for Justin, submit those at: https://financiallysimple.com/ask-justin/ 
 
Connect with Justin:
Financially Simple newsletter 
Facebook 
LinkedIn 
Twitter 
 
Subscribe Here:
Apple Podcast 
Spotify 
Google Podcast 
iHeart Radio 
Stitcher 
 
Let us know your thoughts about the show - please leave a review on iTunes to help others discover the podcast. 
 
Financially Simple is a division of WealthSource Partners, LLC (“WSP”), which offers investment advisory and financial planning services. All investing involves risk of loss, including the possible loss of principal. Past performance does not guarantee future results and nothing in this podcast should be construed as a guarantee of any specific outcome or profit. All market indices discussed are unmanaged, do not incur management fees, costs and expenses, and cannot be invested into directly. Business planning services offered by WealthSource Business Advisors, LLC (“WBA”). 
 
This podcast is distributed for informational purposes only. The content of this podcast represents the views and opinions of Justin Goodbread and/or the podcast’s guests and do not necessarily represent the views and/or opinions of WBA, WSP or their affiliates or representatives. Statements made in this podcast are subject to change without notice. Neither WBA, WSP or their representatives, the podcast’s hosts or its guests have an obligation to provide revised statements in the event of changed circumstances. Statements made in the podcast are not to be construed as legal or accounting advice or as personalized advice of any nature. Listeners should conduct their own review of any statements made or strategies discussed and exercise judgment or consult with their own professional advisor to see how the information contained in this podcast may apply to their own circumstances.

As a business owner, you're a rock star. You are a master of your trade, and provide your clients with the best experience they can have. But what about all those other areas of business? Are you the best HR director? Marketing Specialist? Are you a master of developing systems and processes to maximize operational efficiency? More than likely, you're unequipped in at least one of these areas.
 
That's why you have a manager on your team. But too often, business owners fail to let their managers manage them. In this episode, I discuss some of the reasons business owners struggle to let go and let their managers also manage them. I also explore the benefits of working with your management team, and offer steps to take to relinquish control for the sake of your business!
 
This week on The Financially Simple Podcast:
 
(3:20) The role of an office manager
(4:17) Hiring your opposite
(11:26) How I allowed myself to be managed
(24:00) Don't stand in the way
(14:13) Benefits of being managed by your office manager
(26:53) Steps to relinquishing control
 
Our Favorite Quotes: 

"Why have a manager if you don't allow them to manage?" - Justin Goodbread
 
"If you're clinging too tightly to control, you're probably spending a significant amount of time on tasks that don't maximize the value of your time." - Justin Goodbread
 
"Emily piped up and she said, 'Amy, he needs somebody to tell him "No," graciously because of his personality.'"

About The Financially Simple Podcast 
 
If you are looking for a podcast that speaks directly to the challenges and puzzles of running a business, you’ve come to the right place. The Financially Simple podcast was built for you. With over 400 episodes and counting, our host Justin Goodbread covers a broad range of topics, from starting a small business, to prepping it for sale, to growing your personal wealth. Justin’s combination of analytical skills, tough love, and a healthy dose of experience delivers practical ideas that will benefit business builders at every stage of their business journey.  
 
If you have questions, or comments for Justin, submit those at: https://financiallysimple.com/ask-justin/ 
 
Connect with Justin:
Financially Simple newsletter 
Facebook 
LinkedIn 
Twitter 
 
Subscribe Here:
Apple Podcast 
Spotify 
Google Podcast 
iHeart Radio 
Stitcher 
 
Let us know your thoughts about the show - please leave a review on iTunes to help others discover the podcast. 
 
Financially Simple is a division of WealthSource Partners, LLC (“WSP”), which offers investment advisory and financial planning services. All investing involves risk of loss, including the possible loss of principal. Past performance does not guarantee future results and nothing in this podcast should be construed as a guarantee of any specific outcome or profit. All market indices discussed are unmanaged, do not incur management fees, costs and expenses, and cannot be invested into directly. Business planning services offered by WealthSource Business Advisors, LLC (“WBA”). 
 
This podcast is distributed for informational purposes only. The content of this podcast represents the views and opinions of Justin Goodbread and/or the podcast’s guests and do not necessarily represent the views and/or opinions of WBA, WSP or their affiliates or representatives. Statements made in this podcast are subject to change without notice. Neither WBA, WSP or their representatives, the podcast’s hosts or its guests have an obligation to provide revised statements in the event of changed circumstances. Statements made in the podcast are not to be construed as legal or accounting advice or as personalized advice of any nature. Listeners should conduct their own review of any statements made or strategies discussed and exercise judgment or consult with their own professional advisor to see how the information contained i