Ep 128: Advising Small Business Owners By Helping Them Increase Their Own Enterprise Value with Justin Goodbread
Financial Advisor Success
Michael Kitces
4.8 • 696 Ratings
🗓️ 11 June 2019
⏱️ 116 minutes
🧾️ Download transcript
Summary
After starting his first of five businesses at the age of 15, there aren’t many business activities Justin Goodbread hasn’t experienced. In 2009, he founded Heritage Investors, an independent RIA based in Knoxville, Tennessee, in hopes of helping individuals, business owners, and retirees attain their financial goals. Today, Justin joins the show to discuss how his firm has crafted a niche in working with small business owners and how they track how each owner’s net worth increases over time.
In this episode, we talk about why Justin finds it more effective to break his advisory fee—which can sometimes be as much as $20,000 a year—into a more cash flow friendly monthly subscription fee. Listen in to learn how he has focused his marketing toward these small business owners and how doing so has ironically brought him more prospects outside his niche. You’ll also hear which five business books he reads every year to run his own advisory business more efficiently.
For show notes and more visit: https://www.kitces.com/128
Transcript
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| 0:00.0 | Welcome to the Financial Advisor Success Podcast, where you go behind the scenes with |
| 0:07.2 | financial planner, speaker, and consultant Michael Kitsis to hear stories of how leading financial |
| 0:13.0 | advisors navigated the inevitable challenges that arise on the path to success and get insight |
| 0:18.7 | from leading industry consultants about how to break through to the |
| 0:22.1 | next level in your advisory business. And now here's your host, Michael Kitsis. Welcome, everyone. |
| 0:29.2 | Welcome to the 128th episode of the Financial Advisor Success podcast. My guest on today's podcast is |
| 0:35.9 | Justin Goodbred. Justin is the founder of heritage investors, |
| 0:39.6 | an independent RIA based in Knoxville tennis fee that supports nearly 150 million of assets |
| 0:44.7 | under advisement for 120 client households. What's unique about Justin's firm, though, is the way |
| 0:50.5 | they've crafted a niche in working with small business owners, to the point that the |
| 0:54.2 | primary asset they advise on is the client's business, not their portfolio, and performance |
| 1:00.3 | is tracked not via the returns of the portfolio relative to a benchmark, but by how the |
| 1:05.2 | owner's net worth increases over time through creating enterprise value in their business. |
| 1:16.6 | In this episode, we talk in depth about what exactly Justin does to advise small business owners. The way his process starts with traditional financial planning, but then shifts in |
| 1:20.6 | great depth into business planning instead. The tools that Justin uses to do an informal |
| 1:25.7 | valuation for every small business owner client to |
| 1:28.3 | start the conversation on increasing enterprise value. |
| 1:32.3 | The eight business areas of leadership, planning, sales, marketing, people, operations, |
| 1:37.4 | finance, and legal that Justin advises on. |
| 1:40.6 | And why Justin has found it most effective to work with small business owners by breaking |
| 1:45.0 | his advisory fee that may be as much as $10,000 to $20,000 a year into a more business cash flow |
| 1:51.4 | friendly monthly subscription fee instead. We also talk about how Justin built his marketing to reach |
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