You Don’t Know What You Don’t Know

A number of years ago, Victor Mature, the hulking, broad-shouldered star of a number of classic sword and sandal epics of the 1950s and 1960s, applied for a membership at one of the premier country clubs in Beverly Hills. The chairman of the club at the time quickly denied his application citing the fact the club shied away from having actors as members.

“But I’m no actor,” Mature protested. “And I have 67 films to prove it.”

Sometimes I sort of know how he felt.

Despite covering the profession for 12 years, drafting nearly 1,000 columns and articles plus another 18 months on the consulting side of the business, I’m still wending my way through the various nuances of public accounting and most importantly, still maintaining a tabula rasa so to speak.

I learned very early on that I didn’t know what I didn’t know and sought to change that, or at least navigate my knowledge chasm somewhat more skillfully.

Which brings me to the topic de jour.

At a recent gathering of CPA firm owners and managing partners, I had a rather animated conversation with a small firm owner, who, for lack of more apt description, didn’t know what he didn’t know. And what exacerbated the situation is he didn’t want to know.

He was in his mid-60s, planned to work at least another 10-15 years at which time he would address any and all succession concerns.

So, let me get this straight, I asked, when you’re closing in on 75, you’re going to take on the added burden of mapping out an ownership transition plan, while servicing your existing clients and retaining much of the administrative duties of day-to-day operations?

He answered in the affirmative and maintained that he saw no need to engage our services or any other consultant for that matter.

I simply shrugged, wished him luck and moved on. But I gave him my card in the off-chance he experienced a revelation.

For those of you with a Victor Mature-like pedigree in the profession, I doubt I have to explain the pending train wreck awaiting this owner not so far into the future. Nor does it take much of an imagination to envision the inevitable scenario that will ensue.

His 11th hour strategy was one destined to backfire like a potato wedged in an exhaust pipe and will not be nearly half as funny.

Sadly, there are too many owners who think along those lines. When it comes to ownership and transition issues, it’s what you don’t know that can and will hurt you.