let's raise the bar on YOUR PATH

to Success or SignificanceHOW WE LIVE TOmorrow DEPENDS ON OUR DECISIONS TODAY

owners & Advisors

Why is this important?

what 1200 engagements and 1500+ clients & their wealth in 25 years has taught us both - In short, the top 1% of owners andtheir advisors succeed because they mastered two principles ofleveraging human capital and managing risk.

investing in unique knowledge & relationships

Whether: growing the business to the next level; sales, revenue, profit, valueAn eventual transaction of the business, hold, sell, transfer, M&Aa liquidity event & wealth managementOwner & Family desire to become a family of significance

what the top 1%does differently

They require a strategic ("holistic") approach that aligns advisors andowners.

This forces them to play an A-game, which includes collaboration andcohesion.

The owner will always be willing to pay a premium for receivingsomething above the rate and/or commission as the return of value provided far exceeds the amount paid.

The provider's success becomes the owner's success as is the conversebenefit to the provider.

As we learned to drive

the Auto insurance and repair businesses knew that wecan't all be "great" drivers.

and then in the business world

there were those who push themselves to strive, questionand answer. There were those who show up having earned the rightto practice their profession andthose, like you, who "dared greatly" to make their ownpaths instead of following others

back in High Schoolremember, there were A-students, B, C and so on?

the practice of law

Having worked with hundreds of attorneys, there are as manyvarying competency levels and personalities as there aredisciplines. a solid generalist may be ideal for some matters;whereas a trust & estate litigator may be preferred in others.

The layperson might understand the two differ, but we can'tassume this is true.

owners often don't know what they don't know. This leavesthem vulnerable. to their advisors' interpretation. For manyowners "what does it cost?" is the measure understood. It'salso a serious limitation.

the practice of accounting

Many use the general term accountant or CPA however, within their profession, there are those whosediscipline is primarily business and/or personal tax returns;others that focus on audits; and others are complianceoriented.

The point is that not only are there gradients of ability, butalso specialization.

Not all are great students or drivers or service professionals.

OWNERS Expend RESOURCES working with existing professionals.

DO owners see these services as necessary & does this equate to theirhaving value? or are they expenditures that come down to rates andcommissions paid?

a provider will always justify s/he is receiving a fair amount (akin tothat we're all good drivers).

owner's expectationsWhat advisors often can't see

However, if other providers can render the sameservices or relationship "quality" at the same

levels, no differentiation is provided.

the issue of synergies

Most advice is ad hoc, one-off, technical, tactical and transactional.

Each profession, based upon orientation, may see a solution for theirpart of the case. while never ensuring that all are looking at the samecase.

they may have differing and conflicting vantage points.

This is why alignments are a key to success

(What question would a patient likely ask a heart surgeon? Is it cost or success rate?)

the "fees/rates" issue gets compounded when there's "not enoughdetail to determine scope or complexity" so the inquiry becomes; ""my client needs 'X', what will it cost?"

Yet, The real fear of god issue is what and when will this impact theclient or present itself such as in an audit or a dispute arises? (this isthe reactive stance, not proactive in view)

what will it cost?

negotiating fees, when clients/prospects may notunderstand what is being received, frames the

offering as a commodity.

too often these compound owner frustration and hesitation toact.

Think of this as inefficient at best and ineffective at worst....while assuming all are competent professionals.

common predicamentsa lack of perceived value

Is it any surprise the prospect/ownerwants to minimize what s/he's paying?

difference between an Accountant,an economist and a finance

professional?ACCOUNTant is concerned with the gathering, reporting and analysisof business transaction data

ECONOMIST studies the production, consumption and distribution ofgoods and services through the behavior of people, companies,industries and nations.

FINANCE figures that process out as it reflects investing decisions andrisk management. It is concerned with the time value of money, rates ofreturn, costs of capital and optimal financial structures.

Yet retention selection often is basedon fee not knowledge

Cost, price, value & worth

COST is what is considered and the benefit of what an alternativewould have given.PRICE is the amount paid in return for goods and services. VALUE is the measure of the benefit believed to be gained from thegoods or servicesWorth is what one is willing to pay, which may or may not be thesame as its price or value.

example

it cost $0.15 to produce a jug of water it is sold for a price of $0.75to $1.25. would you pay $1.25 if it was the only selection available? What's its value if you hadn't had any fluids in three days andwould you be willing to pay $10.00? How about if that gallon was poured into a pool of water and itwas the difference between drowning or not?

what is the most valuableasset owners have?

their prized possession, the business.

This has incalculable consequences and lays business owners bareto consultants and advisors who may be well intentioned simplybecause the time to at least distinguish what "good" or"great" strains commitments of time and importance.

the largest number of business owners have no idea theirsusceptibility to the fee versus value received dynamic.

why some advisors are paid for performance and why some ownersgrow $50 to $500 million companies?

They leverage human capital while managing risk.

It's simply not financial and tax engineering alone.

risk-vs-opportunity-optics

Do you the reader nowunderstand

Vision. Direction. Execution.

your team leaders

Robin Coady Smith1330 Avenue of the Americas, 23rd FlNew York, NY 10019Phone: 1-646-328-1982Email: robin@prcio.com

carl Lloyd Sheeler, PhD, ASA, CBA, CVA 2725 County road 250Durango, CO 81301Phone: 1-619-453-3015Email: carl@prcio.com