Ep 507: Growing Bigger For Succession And Then Intentionally Downsizing For A Simpler Lifestyle P...
Carolyn McClanahan talks with Michael Kitces about cutting her client base from 100+ to 65 and reducing to a four-day week without losing much profitability.
The gist
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McClanahan says downsizing clients intentionally, based on age and complexity, let her cut to four days a week while keeping similar profits.
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She structured succession by gifting 15% equity to her team and letting key advisors buy 34% over six years, avoiding outside financing.
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McClanahan recommends hiring external coaches to set transparent pay scales and career milestones before you start hiring, not after problems arise.
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The Obstacle is the Way informed her mindset around treating burnout and setbacks as prompts to rethink her practice model.
"I've been big into stoicism, reading stoic philosophy the last few years, and you know Ryan Holiday wrote the book The Obstacle Is the Way, which Marcus Aurelius talked about, and learning to approach obstacles as opportunities instead of problems. I think that I wish I would ..."
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