One important thing to keep in mind is that business and investing is a team sport. You have to discover how to set up your team, manage your team, and continue to evaluate your team to make sure they are truly still the right team members for you.
For example, someone you want on your team for basketball might not be the same person you want on your team for football. The same applies for business and investing. Oftentimes, when you first start out in your job, you find you’re in the right place for some time, but eventually you might outgrow it. The same is true for members of your team. You're always growing and developing. Over the years, you might outgrow your team members and advisors and not share the same values and goals as you once did.
As a business owner and investor, you strive to grow and build your business. Occasionally, business owners may consider selling it once their business has become stable and grown as far as it will grow. What can happen is the business owner then turns over their money to an investment advisor and they don’t pay attention to it.
At TFW Advisors®, we say that you have a greater ability to create wealth than anyone else on your team. YOU are the primary person on your team. You must realize, though, that investing is a team sport and that you can’t do it all yourself. However, you can’t rely on someone to do it all for you, either. TFW Advisors® advocates for participating with your advisors in growing and developing your wealth and your cashflow rather than turning it over to them or just doing it yourself. It’s the idea that when you work together as a team and have the right team members, that’s when you're going to grow the most.
Recognize that as you grow, you will need to assemble your team. You will outgrow your team. You may start with your tax advisor and need help with your tax return. As you grow, you may need assistance with your alternative investments and need to seek a CPA with greater expertise. This is why you have to evaluate your advisors and not be hesitant to make a change to accelerate your growth. You need to recognize when it is time to upgrade your team of advisors.
How do you know when it’s time to upgrade your team?
You will know it when you start getting that uncomfortable feeling. This is why you should be paying attention to and constantly evaluating your team members. Someone may not be a great match like they once were. For example, if you have been investing in stocks or through 401Ks and now you want to invest in real estate, do your advisors understand your new direction? Interviewing your advisors and looking at their specialties may reveal that they don’t have the necessary skillsets to help you succeed moving forward. If you get this uncomfortable feeling or if you sense that you’re unsure they understand, then it’s time to start reevaluating your team and your situation. Every entrepreneur and investor who is paying attention detects this.
Now that you have assembled your team and are constantly evaluating your team, how do you deal with a team member who is no longer a fit for you?
Sometimes, it’s a matter of whether there isn’t a place for them anymore since you have grown. It’s a hard decision. Whether it’s your tax advisor, your financial advisor, your attorney, or any other team member, you will always need to consider upgrading your team. Don’t be afraid to make the change when you’re ready to make it. It’s not easy. At the same time, if it’s not right for you for things to stay the way they are, it’s not right for them either.
You will always want to seek an advisor and team member who accepts your feedback and who is willing to grow, be honest, and act on that feedback. When you do this, they will be more likely to be willing to grow with you. When you pay attention to your team, educate them, manage them, and upgrade when necessary, you’re going to make way more money and pay way less taxes.
Want more help making way more money and paying way less taxes? Schedule a call with the team at TFW Advisors® today!