Most businesses fail to reach their 10th anniversary. Financial advisory firms fall in line with these statistics. As a result, thriving practices have considerable value because they demonstrate they have met a market need, generated new clients, have adequate cash flow, and can successfully hire and retain employees.

Yet as these business scale and grow, their owners ultimately need to think of their future exit and how it will affect their entire family.

When it comes to deliberately transitioning a business, 73% of advisors lack a formal plan to do so, according to a 2018 Financial Planning Association and Janus Henderson Investors study. Succession planning is paramount on many advisors’ minds, yet a majority fail to initiate the steps to successfully prepare for the future. While procrastination is often the cause, there can be other hidden challenges.

Advisors should tackle the following steps to help them successfully transition their business: