I know many seasoned advisors who have built and established very successful businesses. But capitalizing on that initial success and taking their practice to the next level often poses a significant challenge. In many cases, fostering growth for long-term continuity and health of the firm is best achieved through careful expansion of the team. But where do you start?
Bringing on the “Right Fit” advisor can fulfill your growth goal in the short term and also help play a role in your long-term succession plan if you find the ideal fit.
First Steps: What’s Your Strategy?
Once you’ve decided it’s time to expand your business through recruiting an advisor, take the time to clearly define your firm’s value proposition and how you want to go about growing your business.
There are two growth strategies to consider:
1. Bringing on an experienced advisor who can either
- manage more of the day-to-day operations, freeing up the senior advisor to spend more time servicing clients, or bring along a strong client base and book of business
2. Bringing on a junior advisor to train, develop and groom to eventually generate additional client and revenue opportunities for the firm
Advisors who want to expand their practices must have a clear understanding of the strategy they wish to employ and whether they want to continue to be a sole practitioner or build a more team-oriented business. Before considering expansion, it is a good idea to answer some statements to clarify exactly what you are seeking:
- What business need am I trying to fulfill with this new advisor?
- What expectation do I have of this person and his/her role with the firm?
- What skillset(s) am I looking for?
- What type of experience do I want to create for myself and my clients long term?
Once you have defined what you are looking for, it’s time to begin searching for and attracting the right talent. The clearer you are about the advisor you are seeking, the easier it will be to narrow the search and filter out the advisors who aren’t a fit.
Strategy 1: The Case for Hiring an Experienced Advisor
If you decide the right strategy for your business is to bring on an experienced advisor who can help with the firm’s operations and allow you to spend more time with clients, this individual needs to understand the industry and your business so they can assume some of the managerial and day-to-day operations quickly.
With this advisor role filled, you can let go of many of the administrative responsibilities currently absorbing your time and redirect your energy to what you do best: serving your clients.
This operational leverage can also create the opportunity to grow your client base by giving you more time to dedicate to prospecting and lead generation. The experienced advisor can also bring in additional revenue as they build their own book of business, while managing your business.
If you have the operations side of your business already working efficiently, but want to add to your immediate client base and assets under management, hiring an experienced advisor with a robust clientele and book of business may make sense.