Financial Gravity Companies, Inc. · OTC:FGCO
Financial Gravity Companies — Financial Gravity Tampa Conference 2022 – Day 2
59 slides from Financial Gravity Companies's conference presentation, October 2022
Slide 1: Marketing Your Business
Marketing Your Business Day Two | 9:00 am | 45 minutes
Slide 2: Family Office Director Break Out Session
Family Office Director Break Out Session
Slide 3: Agenda
Agenda • What is your practice worth right now? • Determinants of value–what are they acquiring? • Ten tips • Common mistakes • How can that number get bigger? • What could your practice be worth? Let’s look at multiples in other finserv businesses…. • All revenue is NOT created equal • Present valu
Slide 4: Calculating Your Sale Price
Calculating Your Sale Price Multiple Rule ● .9 to 1.5 ● Revenue Breakdown? …the answer is: it depends ● Nurture, Starve or Kill
Slide 5: Calculating Your Sale Price: Key Factors
Calculating Your Sale Price Key Factors? Profitability Negative Factors Size Seller Location Terms Growth Engine Guarantees
Slide 6: Devil in the Deets
Devil in the Deets ● Seller Guarantees ● Collection Pricing ● Look Back Pricing A low margin firm of 30% will trade close to ● W/out Guarantees the bottom of the range and a high margin firm of 65% will trade in the upper range. ● Cash ● Fixed Seller Financing ● Check the Comps!
Slide 7: Sale Pending
(5 LOCATION Culver City Glendale Irvine Lake Forest Oakdale Piedmont Pleasanton San Diego (Mission Valley) Santa Ana Tustin PRICE $425,000 $550,000 $750,000 $620,000 $560,000 $500,000 $80,000 $340,000 $220,000 $220,000 Sale Pending Gross REVENUE $325,000 $473,872 $633,722 $524,572 $558.819 $360,000
Slide 8: Affecting Your Sale Price
Affecting Your Sale Price Marketing Human Capital Billing Data Infrastructure
Slide 9: The 2021 Rosenberg Survey Results at a Glance
ul Exhibit 1 Exhibit 1 The 2021 Rosenberg Survey Based on 2020 Data Results at a Glance Multi-Partner Firms Over $20M in | $10-20M in $5-10M in $2-5M in | Under $2M Net Fees Net Fees Net Fees Net Fees | in Net Fees (43 Firms) (77 Firms) (102 Firms) | (63 Firms) (18 Firms) Income per equity partner 6
Slide 10: Financial Advisory Industry Overview
Financial Advisory Industry Overview
Slide 11: MFOs Capture the BIG Multiples
MFOs Capture the BIG Multiples Big boys: > 12 times EBITDA (Piper Sandler) AUM = $1 - $5B 7x and 9x times EBITDA
Slide 12: Very Different Outcomes
Very Different Outcomes Type of Business Revenue Multiple EBITDA Multiple Tax Practice 0.71 to 0.99 2.99 to 4.45X* RIA 1.9 to 3.0 3.3 to 4.15X MFO 7 to 9X
Slide 13: RIA Drivers of Value
RIA Drivers of Value • Predictable revenue and • Client affluence and average client recurring revenue streams revenue • Client demographics • Asset or revenue concentration • Average client tenure • Use and structure of referral fees • Size of potential market • Length of surrender period • Transit
Slide 14: 5 Compliance Mistakes You're Probably Making
5 Compliance Mistakes You're Probably Making ● Neglecting Internal Compliance Audits. ... ● Not Connecting the Dots. ... ● Using "Off-the-Shelf" Policy and Procedure Templates. ... ● Ignoring the Connection Between Compliance and Business Value. ... ● Doing it Yourself.
Slide 15: Sprint v Marathon
Sprint v Marathon Doubling the amount of cash A sole proprietorship, or a flow in an "egocentric" corporation or LLC with just practice model - which is the one owner, will come to an most common model in the end with the retirement, industry today - often results disability or death of its in littl
Slide 16: One Small Step For One Giant Leap
One Small Step For One Giant Leap • The Best Deal Since the Dutch Bought Manhattan for $24 • The FG Turnkey Family Office Charter • Define: Turnkey • Define: Family Office • Define: Charter • Done for you!
Slide 17: Barriers is a Fancy Word for RISK
Barriers is a Fancy Word for RISK RISK You Also Need: • Not Just to Make, But to BE the Change • If you can’t learn the lingo • Thought Experiment • If you don’t have the infrastructure • If you don’t have a marketing engine …all absolute requirements, but not the only things
Slide 18: Sources/References
Sources/References • https://www.advisorlegacy.com/index.php/component/sppagebuilder/132-services-practice- value-estimator • https://peakbusinessvaluation.com/valuation-multiples-for-a-financial-advisory/ • https://www.atbcal.com/?gclid=Cj0KCQjwhY-aBhCUARIsALNIC04uRiDi8i8muDyu9KVwusEjRg- LP6a5aD85-
Slide 19: Regulation, Compensation and Licensing
Regulation, Compensation and Licensing Day Two | 9:45 pm | 30 minutes
Slide 20: Agenda
Agenda • Boring and Scary • “A million small things, each of which can be fatal” • DIY v DFY • Next steps/references (?)
Slide 21: The Legal Bridge
The Legal Bridge • Mission critical even if arcane and not “sexy” • Less about arcane knowledge than about transparency • Necessary for compensation • FOD: Very deep in one SM but “deep enough” in others Must know how to tell the time, but not how to build a watch
Slide 22: Your Contribution
Your Contribution • SME on Tax Compliance and Planning • Knowledge of/Concern for the Client • Auditor of Integrity • Of People and Process Thought Problem: How is this list different from what you’re doing now?
Slide 23: The Complete FOD
The Complete FOD Tax & Compliance Grounded in Applies Knowledge Planning Expertise Financial and Discipline Statements …Plus Skin in the Game
Slide 24: So Many Ways to Go Wrong
So Many Ways to Go Wrong 5 Common Compliance Mistakes ● Neglecting Internal Compliance Audits. ... ● Not Connecting the Dots. ... ● Using "Off-the-Shelf" Policy and Procedure Templates. ... ● Ignoring the Connection Between Compliance and Business Value. ... ● Doing it Yourself.
Slide 25: Good News!
Good News! You Are Already: • In a regulated and scrutinized environment • A Fiduciary • The MOST Trusted on the team of rivals • Sibling (not cousin) of thousands of FODs • Really good at taking tests
Slide 26: Many Spokes On the Wheel
Many Spokes On the Wheel IAR CRD • Account, Licensing, and Registration with FINRA • State Insurance Commissioner Registration • Advertising • Review, Approval, Archiving • Forms ADV Part 1, 2, and 2B • Continuting Education • Monitoring • Insider Trading • AML • Form 13F • Manuals • CRS • Suitabili
Slide 27: DIY v. DFY
DIY v. DFY DIY DFY ● Massive Commitment ● Outsourced & off your plate ● Complicated ● Packaged (w/E&O) ● Many moving parts & players ● Fraction of the cost ● Expensive ● Fast ● Slow ● Worry free ● Scary w/ Good Reason: ● 1% mindshare Dangerous ● Automated & Auditable ● Vigilance required ● Never-end
Slide 28: Wu
Wu
Slide 29: The Winner's Playbook
The Winner’s Playbook A recipe for success in financial services (The Success Map) Day Two | 10:30 am | 45 minutes
Slide 30: Agenda
Agenda • 3 Main Challenges • Sports Analogy • Your Success Map • Success Guarantee
Slide 31: Evolution: Always Lives in a Brave New World
Evolution: Always Lives in a Brave New World
Slide 32: Evolution's Main Challenges
Evolution’s 3 Main Challenges Befriend the Climbing the Finding the Calories Jungle Pyramid
Slide 33: Sports Analogy
Sports Analogy Define Success, then ● Get in Shape ● Learn the Playbook ● Work as a Team
Slide 34: Get in Shape
Get in Shape The Preseason 2 Weeks 2 Months 4 to 8 Years The Goal: Muscle Memory
Slide 35: Get in Shape
Get in Shape Get Licensed, Prepare to etc. Rebrand Find your Not the Quarterback: Get a Coach Place in the The GM: Organize Game* Your Client Book * The Wallet Share Game!
Slide 36: Learn the Playbook
Learn the Playbook ● Investment Philosophy ● Value Proposition–the big idea ● Differentiators*** ● Exclusive/unique apps and processes**** ● Your Pitch is NOT a sales thing or even a story– it’s the simple truth • Learn About the Competition • Preseason Sets the Tone • Offense, Defense, & Special Te
Slide 37: Play Like a Team
Play Like a Team Defining Winning* Know and play your position** When you want the ball v when you don’t *** Even the waterboy gets a ring****
Slide 38: Your Success Map
Your Success Map Head for Carnegie Hall* ES S U C C Set Specific Goals S and Set Dates Winning v Selling Dedicate time to get in shape and learn the plays When the Client Wins, You Win FOREVER
Slide 39: Your Success Map
Your Success Map THE STORY: How tax pros created major income, diversified revenue, 12 month bookings, and massive goodwill in one year.
Slide 40: Your Success Map… the Road to Real Benefits
Your Success Map… the Road to Real Benefits Credit Revenues Fewer of Never Worry About and Good Will* Them 1040 Threats Again Impact on Change of Very Different Take Weekends Financial Clientele Relationships Off in April Statements Over Time
Slide 41: Marketing and Branding
Marketing and Branding The Head Coach Driver of, Does Not and Determinant of, Handle Ticket Sales Value
Slide 42: Marketing and Branding
Marketing and Branding Key Principles: Start With the Why ? Mindshare Leads to Wallet Share Provide Genuine Value Offer Help with Diverse / Actionable / Current Affairs Driven Problems Be Easy to Know** @
Slide 43: Start With the Why
Start With the Why Sinek’s Golden Your Contribution Start Crafting Make it Your Circle and its Impact Yours Now Mantra https://www.youtube.com/watch?v=GaGsw1MFgk8
Slide 44: Mindshare Leads to Wallet Share
Mindshare Leads to Wallet Share • Like a Pilot’s Life Who Knows the Most? • Who is Offering the Most Appealing Value Prop? • Who is NOT Selling Something? • Who Can Be Counted On?
Slide 45: Provide Objectively Valuable Help
Provide Objectively Valuable Help ? Can You Answer the Key Question?
Slide 46: Real World Conversations
Real World Conversations • Q4 2022 • Inflation • Rising Interest Rates • Falling Asset Prices • Legislative Risks • Nuclear War
Slide 47: DIY v. DFY, Part Deux
DIY v. DFY , Part Deux DIY DFY ● Insource ● Typical Outsourced Solutions ● Time Consuming* Expensive ● FTE or on you (Expensive Either ● Generic Way) ● FA NOT FO ● Creative/Requires a Type of ● Passive Only Talent ● Not True Branding ● Active v. Passive: ● No Website, Webinars or White ● CTA/Fulfill
Slide 48: "Don't Know How to Market"
“Don’t Know How to Market” LEAD CAPTURE MONTHLY WEBSITE CAMPAIGNS WHITEPAPERS ADs
Slide 49: Winning
Winning What World Champs Have in Common: • A Strong Organization with a Common Goal • A Great Coach • Talent Diversity • A Winning Playbook • Best (Not Perfect) Execution • The 12th Man
Slide 50: Great Coaching
Great Coaching • Those Who CAN do Teach • Bona Fides of FG Talent Pool and Leadership
Slide 51: Talent Diversity
Talent Diversity Director of Marketing Retirement Planning = FOD & Planning FOP Enhanced Planning Compliance Family Office Partner Liaison Client Success Director of Education ay Kimberly Perry, CPA [Family Office Director a= pollock w | ‘Scott Winters II Family Office Partner sieon JEdtyon, J.D. Ta
Slide 52: Winning Playbook
Winning Playbook Best Best Best Best Story Value Prop Philosopohy Tools MFO Model TFTM Control the Real Risk Meter, Controllables Incomize, etc etc
Slide 53: Best Execution
Best Execution • Perfection NOT Required (or Possible) • Lived Experience Aligns with Expectations • Business Processes Take Years to Create • Client Development Process • Client Uptake Process • Client Servicing ○ Portal ○ Responsiveness ○ Transparency
Slide 54: Referral Engine
Referral Engine • Ratcheting up Your Business • Redefining your Brand • 80 great Clients More Valuable than 800 Customers*
Slide 55: Best Decision Test Ever
Best Decision Test Ever Is This Move Objectively Positive / Good / Improving For: • Your Clients? + • • Your Coworkers? Your Company? • Your Career? When All Four Are “YES”, the Decision Becomes Easy.
Slide 56: Tale Of Two Choices
Tale Of Two Choices DIY, but not the cool Home Show kind, Partial Checklist – Available on Request • Become RIA • Plan, write and get approved Wealth Centric email • Hire Compliance Company • Calendar Software Get Compliance Software • Find Tax Planning Software • Determine Decision Making Paradigm
Slide 57: Tale Of Two Choices
Tale Of Two Choices DIY Projected Cost Timeline $100k - $250k a Year One – Three Years
Slide 58: Tale Of Two Choices
Tale Of Two Choices OR DFY Multi-Family Office Charter $1,199 a month Full List 1. Guaranteed Success Map - $50k in Revenue in the First Year 2. Weekly ½ Hour Cadence Coaching Calls 3. We set up all the Technology with a bit of information from you 4. We set up Marketing Infrastructure with a list,
Slide 59: The Future of the Entrepreneurial Tax Professional
Thank You for Attending: The Future of the Entrepreneurial Tax Professional A Bold Vision for the Future of Tax Professionals
Financial Gravity Companies — Financial Gravity Tampa Conference 2022 – Day 2 on 6ix