From the January 2010 issue of Investment Advisor • Subscribe!

It's Just Business

Sidebar to the Cover Story "Reinvention Time"

When Scott Hanson talks about Hanson McClain's new venture to serve the middle class, he puts it into a business perspective, and explains why he and partner Pat McClain expect the venture to be successful:

"A lot of financial advisors are just tradesmen," says Hanson. "They have a certain service that they provide and that's what they do. As they get more successful they just work with bigger clients or more complicated clients to generate more revenue for the service that they provide. Most advisors don't view themselves as a business. That's why most advisory shops stay small, and I think it's a mistake. Moving forward, it's going to be even more of a challenge for these folks.

"We look at this as a business. We're business people first and financial advisors second. Any decent businessperson would say, 'How can I leverage the brand I have right now to bring in additional revenue?'"

Hanson says he and McClain "just see this as an opportunity. You're not going to get a 20-year veteran CFP working with a $50,000 client, but why can't we take someone who's a couple of years into the business and ethical and have a proper model for them so that they can serve these people? I think it will work."

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