Financial advisors are entrepreneurs who have chosen to be in financial services. As an entrepreneur building a business, you will be called upon to answer three questions:

1. What role do you want to play? The type of organization you build depends upon the role you want to play.

2. How big do you want to become? As a business grows, administrative, underwriting, compliance and client service activities cut into the time available to attract and retain clients. For those who want to get bigger, the challenge is to address the third question.

3. What is the Requisite Organization? Requisite organization is defined by psychologist Elliott Jaques as “required by the natural order of things.” To grow, you have to decide what type of organization you require.

Norm Trainor is the founder of The Covenant Group, a company specializing in practice development for advisors. For further information, visit his website at

Sign up for The Lead and get a new tip in your inbox every day!

More tips: