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Practice Management > Building Your Business

How to build a million-dollar practice

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David J. Mullen, Jr.’s new book, “The Million-Dollar Financial Services Practice,” gets specific:

  • To support a million-dollar practice, you need to bring in $12 million of net new assets per year and add at least 10 new $250,000 households per year, of which at least two are $1 million plus.
  • You should limit the number of total relationships to 100: teams of three or more should consider limiting each member’s total number of relationships to 50.
  • No relationship should be below $250,000.
  • In most market conditions, a well-managed financial practice should generate 80 basis points on assets managed.
  • Set a minimum amount of business for a relationship to qualify as one of your 100. As a guideline, set a $1,000 revenue minimum for relationships with $250,000 to $1 million in assets and $10,000 for relationships with over $1 million.