Want more profit? Look to your intangible assets, not your inventory.

As the S&P Market Value chart indicates, in 1975 tangible assets which consists of your inventory, building and other balance sheet items, represented 83% of  S&P 500 corporate value. By contrast intangible assets, which consists of  primarily people and enabling technology, represented only 17% of S&P 500 corporate value. Now turn the numbers upside down, because in 2015, intangible assets represented a whopping 87% of value and tangible assets was only 13%. For the MI retailer this observation is key, because of the inordinate amount of time & resources invested in inventory & other tangible assets. “In today’s knowledge economy, company value is no longer driven primarily by physical or tangible assets, but is increasingly attributable to non-financial business drivers — the intangible assets of an enterprise.” CGMA- Chartered Global Management Accountant The two primary business models retailers can chose from is either the Apple model, or the Amazon model. A hybrid puts you in the…

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Musical Instrument Museum: A model for music retailers.

Is their a need for physical shopping spaces in a world of AI intelligence and a global community tethered to their device? Yes according to retail guru Doug Stephens. I agree.  I believe that consumers, will pay according to the value of the emotional connection they have for the special “moments” only brick & mortar retailers can create; aka customer experience. This is not pie in the sky talk. Humans are wired to shop, to interact with people, to be entertained, to share stories. This is how joy central  kicks in and releases the beloved dopamine we all want and can't get enough of. In fact customer experience is so important to the world of global commerce, there is even a Customer Experience (CX Index). Forrester's Customer Experience Index is based on consumer survey data. Criteria for Customer Experience Index rankings include how effectively respondents felt their needs were met and how they assessed the…

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Exit Planning Summit

I had the opportunity this past Monday and Tuesday to share ideas with some of the most respected thought leaders in the exit & succession planning space. The Exit Planning  Institute sponsors and annual event where advisors can share ideas, and connect with old and new friends. Peter Hickey, the CEO of Maus Software, Peter Christman, the original Exit Planner, and Chris Snider, the President of The Exit Planning Institute were all inspiring. My three point takeaway from the event: 1- Your intangible assets aka intellectual capital— human capital, customer capital, structural capital, personal wellness capital—are your key value acceleration drivers. 2- Most entrepreneurs find structural capital which is concerned with documenting processes the most difficult intangible to implement. 3- Peter Christman and Peter Hickey reminded me that managing one's intangible assets successfully requires practice. That's no surprise to me. As a musician, I have been practicing the guitar every day since…

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I hate my job. I’m working too many hours. I’m going to call an Estate and Trust attorney.

Seem far fetched? Not if you believe that estate planning ought to focus on what your client values, rather than the value of what your client owns. Let's say you are an Estate & Trust Attorney who we will call Joan. You have the technical skills to implement well written estate planning documents. You are with a potential client we will call George. You ask George how you can help, and George starts to tell you how he knows he should be putting an estate plan together, but starts complaining how his work is taking all of his time and no longer enjoys his work. Joan has two choices. She  can say that's nice, let's get down to estate planning. Or she can try to learn more about George's work/life balance problem. Joan- What is important to you? George - I raised my family to be passionate about their work, while being mindful of work/life balance.…

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Money and the Meaning of Life

I loved  reading Jacob Needleman's meaning of life book. For anyone that wants to add more "life"   into their financial planning conversation, this book is a must read. If for no other reasons, the questions Dr. Needleman  raises are wonderful. What can we give? What are we meant to give? What, exactly, is our attitude toward money, and how did it originate? How deeply is our sense of self-identity bound up with our emotions about money? What is real wealth? I have to include this wonderful quote. "Personal gain is not excluded from a spiritual life. On the contrary, one gains something in order to give. This is the essence, not only of human life, but of existence itself." When I send personal life event cards to my clients, I always include the following: Wishing you- Physical- Spiritual- and Financial health. This simple triad says it all. In health, Jaimie http://www.jacobneedleman.com/books/money-and-the-meaning-of-life.html…

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Advisor Training. Has anything really changed in the last decade?

I can remember my advisor training at the wire house. The deluge of information coming at me felt more like a train wreck ready to happen than training. Why did the trainers always seem nervous and in a rush? The answer was simple. Less than 10 out of the 30 advisors would succeed as a financial advisor. Has the situation changed much over the years. Not according to a practice manager I recently spoke to at a wire house who was still struggling with 70% dropouts. I wasn't a kid going into the advisor trainee program. My previous experience spanned two entrepreneurial careers, Music Education, and Consulting complete with a Masters degree. Relationship building was always a strength for me. A required skill for the success of a business owner. Coming from an arts background, added a layer of complexity because the financial language had to be learned. I worked hard.…

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Clients continue diversifying financial advice: Cerulli

Nearly 40% of investors express an increased need for financial advice, prompting the typical investor to build relationships with multiple financial advisers, according to the report published by Cerulli. Why are so few clients asking for financial planning help? They don't know what financial planning is. If they don't know what financial planning is, they don't know how it can help them. Click below to read the full article. http://www.investmentnews.com/article/20140416/FREE/140419928#    

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Financial Planning Help. Why no one is asking for it?

According to a 2013 Financial Literacy Survey, 2 out 5 adults would give themselves a C-D or F  on their knowledge of personal finance. Clearly, people need the help of Financial Advisors. Why aren't people asking for financial planning help? They don't know how financial planning can help them because they don't know what financial planning is. Why aren't most advisors promoting financial planning? Same reason... The CFP board defines financial planning as- "A process of determining whether and how an individual can meet life goals through the proper management of financial resources." With only 8% of the population  actually achieving their goals, the word goal  is enough to scare off the crowd right out of the gate. I propose a new definition. "A conversation designed to help individuals organize and understand their financial life, necessary to make sound money decisions." Financial Planing starts with the conversation. Asking the right questions,…

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