Why Corporatise ???
1) Let’s say an MFD managing 100 cr passes away suddenly. Doesn’t this happen???
2) If the AUM is in his or her personal name and if none of his family members are in a position to fill his or her professional gap (which again is the most likely scenario), then it is likely that his AUM will slowly but certainly slip out of his family’s control and move into some other MFD’s control. This is the law of nature
3) Now that means a sizeable income which the family was getting will suddenly cease to flow for them adding to their miseries
4) This is no way to insure one’s family and protect their future. We buy Insurance of Rs 1 cr. but we do not protect a Rs 1 cr. per annum cash flow. This is just like the story of the hen that lays golden eggs. Our Business is the hen. Have we done enough to protect it???
5) However if the AUM was in the name of a Company with a Brand at its helm, it would have provided the required continuity
6) This is because the moment you truly corporatise with a team, systems, management, automation etc, Clients see the Corporate Brand as the Advisor / MFD
7) Companies and Brands are independent entities
8) Company takes birth at the ROC (Registrar of companies)
9) A Brand takes birth by way of its Trademark / Registration
10) Brands and Companies are Assets that attract Valuation and are freely transferable
11) An Individual does not attract any Valuation because an individual is a mere mortal with an end date that is unknown and unspecified except that it is certain
12) An individual is neither divisible nor transferable
13) Time to Wake Up and Smell the Coffee
14) Instead of worrying about the receding margins of the business, what one must seek to protect is the sustainability of the business
15) One must seek to transform the “Individual Business Cash Flow” into a “Corporate Asset” that is capable of providing a “Beyond life Cash Flow”
16) Building a Corporate is thus the greatest legacy a person can leave behind for his or her family
I rest my case