In this edition of ‘Principal Business Champions – Winning Ideas’, we asked distributors across the country to share how they have planned their business succession.
The Principal Business Champions is a joint initiative between Principal Mutual Fund and Cafemutual that offers a platform to the MF distribution community to share their successful business practices and ideas.
The contest has received some interesting experiences from distributors. Here are the entries that received the highest votes.
Winner on Twitter: Dhaval Doshi
I remember one of my clients asking me what would happen to his money if I were to die. While I had no answer then, I decided to groom my daughter to take over my business.
Currently, I am mentoring my daughter by giving her training on products and business development. I often take her to client meetings. In fact, I have asked her to jot down minutes of the meetings and some frequently questions asked by clients. This way, my clients get to know the succession plan and be comfortable with the successor.
Winner on website: Paresh Shah
I always wanted my daughter to take over my business. Right from the beginning, I would take my daughter for client meetings and industry events to prepare her for the responsibility.
I encouraged her to pursue CFP to acquire the necessary knowledge about financial planning. Before joining my business, she had worked for a few advisory and wealth management firms; the idea was to expose her to the nitty gritty of advisory business.
We have segregated personal and professional life. In fact, we have put in place a contract stating that she will take over the business and give me ‘x’ amount every month once I retire.
Winner on Facebook: Prakash Thakkar
I suffered a heart stroke in 2018. The stroke made me realize that though I had secured my family financially through insurance, I had not protected my clients against this eventuality. Once I recovered from illness, I asked my daughter to join my business.
She has cleared NISM exam and obtained her ARN. Apart from assisting me in handling business, she is focusing on creating a niche business by catering to millennial clients, as she is young and can easily relate to the needs and aspirations of this growing investor segment.
