Who's in Your "Starting Five"?

This article was originally featured in Triangle Business Journal.

While both the ACC and NCAA tournaments are much different today, every March, I get the same feeling I had in fourth grade when my teacher rolled in the TV cart on Friday afternoons in March. The nervous anticipation before my team tipped off. My absolute belief that I knew how it was going to end and the thrill of the ride, regardless of the outcome.

Unless you have zero competition, your business is in a constant state of bracket play. And while it’s one thing to manage your business in good times, when things get rocky for your industry or in the economy, you need a deep bench — not just of talent within your company, but also strategically, to help you with your knowledge gaps and give you perspective and context for making informed decisions as a leader.

What to consider before signing your players

In the spirit of March Madness, let’s talk about what it takes to build a superstar team of advisors. Before we get into the specifics of your team, a couple of things to consider:

Geography

Is it important that your advisory team is local, or can your advisors come from outside your geographic area? There are pros and cons to each approach, and most clients have a preference. Some business owners don’t want someone they see at church or at the grocery store knowing “their business,” while others appreciate working with someone who knows everything about them.

References

Ask candidates for examples of how they’ve helped others in your shoes. Speak to references for each candidate as you construct your team. Also ask the candidate for references to other business owners and entrepreneurs like you so that you are assured you’ll have a similar experience.

Now let’s get into the starting five for any entrepreneur.

The entrepreneurial starting five

Wealth manager

Your wealth manager is your point guard and, as such, needs the big picture — they should understand everyone’s role on the court, and they are responsible for getting each player involved when it is necessary. Your wealth manager should be a fiduciary, which means they are legally required to put their clients’ needs ahead of their own.

CPA /Accountant

The CPA/accountant takes center stage as the playmaker, orchestrating your tax strategy with precision. It’s crucial to recognize the difference between tax preparation and tax planning, so define your needs clearly. In seeking a tax planner, inquire about concrete examples of strategic opportunities presented to fellow business owners. Understand how these opportunities were identified and executed, ensuring that you maximize tax advantages and stay ahead of the game.

Corporate attorney

Just as the point guard orchestrates the offense, your attorney handles defense — the legal plays to keep your team in the clear. Whether it’s setting up partnerships, negotiating loans, guarding trademarks or reviewing contracts, their job is to make sure your company plays by the rules and comes out on top. And if you face a lawsuit or a regulatory challenge, you’ll rely on them to defend your team and secure the win.

Estate attorney

Imagine the game’s intensity when sudden injury benches the entrepreneur. Questions flood the court: Who calls the shots on medical and financial matters? How does the team handle the company’s game plan during this absence, whether it’s a quick break or a prolonged timeout? The estate attorney is the player who advises on wills, succession plans, trusts and buy-sell agreements.

Property and casualty insurance agent

Your property and casualty insurance agent is an important specialist, especially as your wealth or risks increase. As an entrepreneur’s wealth grows, we frequently see a rise in other assets — second homes, boats, ATVs, etc. All represent specific risks that need to be addressed by agents working specifically with high-net-worth families. This isn’t where you want to skimp, so don’t make decisions solely on the lowest premiums. Ensure you understand what is covered, and more importantly, what is not, because you don’t want to find out down the road.

A strong bench

In addition to your starting five, you need a solid bench that you’ll call on from time to time to ensure that you’re operating at peak offense. When it’s crunch time, you don’t want to have to recruit a new advisor and bring them up to speed.

Tax attorney

The tax attorney is the strategist who ensures your team plays the long game, minimizing tax liabilities and maximizing opportunities for financial growth. Whether it’s drafting tax-efficient structures or executing timely tax-planning plays, your tax attorney is essential for the long-term success of your business.

M&A attorney

The M&A attorney is the sixth man, ready to step onto the court when it’s time to make big moves. Their superpower lies in orchestrating mergers and acquisitions, transforming potential hurdles into slam-dunk opportunities. When the game calls for strategic partnerships or expansion plays, your M&A attorney takes charge, conducting thorough due diligence and crafting ironclad contracts.

Life insurance agent

A life insurance agent plays a crucial role, akin to a versatile utility player. While term insurance suits the needs of many Americans, entrepreneurs and business owners often require specialized life insurance policies for funding buy-sell agreements or addressing estate and tax planning needs.

Too often, clients have policies they purchased years ago and are unaware whether they still serve their intended purposes. This is where an independent insurance agent steps in as a key player. With their expertise and unbiased guidance, they ensure that your team’s insurance strategy remains agile and effective.

Playing to win

Building a superstar advisory team is an investment of time and expense that will pay dividends during every phase of your company’s life — from startup to the day you might sell or transition your company to a new generation of leadership. With the right strategy for your starting five, your family will have a solid foundation to manage its wealth for generations — just like the basketball dynasties on Tobacco Road.

‍

‍