Lenox Advisors founder shares tips for firm success in tough environment

HOLLYWOOD, Fla – Rick Van Benschoten helped found Lenox Advisors in 1995 with two friends and partners.

By the time they fully sold the firm to NFP, a New York City-based insurance broker and consultant, more than 20 years later, Lenox grew from 13 employees to more than 400 operating in five states.

In 2022, Lenox Wealth Advisors and its $2.1 billion in client assets was integrated into Wealthspire Advisors’ national independent advisory platform.

Van Benschoten took to the stage Wednesday to share a story of successful growth and succession planning to help kick off the 42nd NAILBA Annual Meeting. He shared a few tips for finding success and holding onto it.

What is your why? This is a common business refrain, and Van Benschoten acknowledged as much. But it's also hugely important for a new business.

"How are you different than the next firm?" he said. "You've got to be able to have that elevator pitch to say this is how we differentiate ourselves. And to me that is super, super, super important. That leads to the business model and how you're building your firm."

What is your company culture? The important thing with company culture is to look outside your immediate colleagues, Van Benschoten said. In other words, visit the mailroom and ask probing questions. And listen.

"You wake up in the morning you're psyched to come into the office and continue to build your business, to work with your executive leadership team," he said. "But if you ask the lower level people in your business, 'How's our culture?' And if they were honest, would you hear that your culture is really really good?"

Growth factors. A firm isn't going to grow and diversify by itself. It takes leadership and a persistent desire to make that growth happen, Van Benschoten said. From 1995 on, despite having success, the Lenox partners were constantly thinking about how to grow, he added.

The firm branched out into benefits and wealth management and set up a platform to charge fees for financial planning.

"Not too many people we run into today that we don't have something to talk to them about," Van Benschoten said.

"If you talk to your brokers and ask your brokers, 'What other products are you selling' or 'What keeps you up at night?'" he added. "Ask your clients, 'What keeps you up at night?' Amazing what you'll hear and how that will change your thinking about how you're going to continue to grow the business."

Mergers and acquisitions. Van Benschoten talked plenty about having a succession plan and firm owners knowing whether their goal is to be acquired, or to sell outright, or to pass the business down to an heir. If it's the former, diversification is key.

"Acquirers are willing to pay for diversified businesses, diversified brands," Van Benschoten said. "They’re not as willing to pay for a one-trick pony."

InsuranceNewsNet Senior Editor John Hilton covered business and other beats in more than 20 years of daily journalism. John may be reached at [email protected]. Follow him on Twitter @INNJohnH.

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