Does your firm have the support it needs and what can you do about it?

If you’re an advisor leading a firm you likely struggle to see the your clients while you manage the daily demands of running your business. Most advisors joined the industry not to lead a business, but to work with clients to help them achieve their financial goals. The best advisors do not always have the support they need to be the best business owners as they grow. When firms start to see errors and duplication in paperwork, employees without clear role definition, and a leader who spends more time reacting to business concerns than serving clients they have a few options. Firm leaders can look to hire key operational staff to guide the creation of processes in-house, they can join an enterprise organization that provides best practices and guidance to leadership, or they can work with a consulting firm to obtain the outside advise they need to empower their team and find their stride.

• Hire Operational Staff – We are increasingly seeing advisor-led firms hire operational staff to coordinate processes and ensure all members of the team are empowered as part of the larger organization. Traditionally, these firms have been too small to warrant a need for operational expertise. They have been able to manage their books of business through an often inefficient, but functional, system where advisors and support staff share duties to process new business, service existing clients, and grow the firm overall. Hiring operational staff can streamline the inefficiencies that begin to appear as firms grow through generations. Unfortunately, hiring quality team members comes at a high price and many firms do not need full-time operational support.
• Join an Enterprise Organization – We continue to see firms look to join other likeminded firms to grow together with. Firms often find tremendous value in joining the right enterprise organization for them. The key is finding the right organization for you and your firm’s unique needs. Each firm is unique and each enterprise organization provides a variety of services and support to the firms they serve. It is vitally important that you take the time to vet any potential partners to ensure their culture fits your firm. When exploring your options for a partner to grow with be sure: the community of advisors you’re joining, the support your firm will receive, and the price you will pay to be part of the network, all fit you and your team.
• Work with a Consultant – We often see firms look for a shorter term, targeted solution to their operational growth hurdles. Many leaders turn to outside consultants and coaches to help them align their teams for success. Consultants are an appealing option to many because they offer a targeted solution to the problems they see. The unique outsider perspective provided by a consultant can lend an unbiased view to the problems you may face in your business. These engagements can provide the solutions firms need at a lower cost than hiring new staff allowing firms to continue to grow efficiently. Consulting engagements can range from 1-3 month commitments to long term coaching relationships.

Which option is right for your firm? It obviously depends on the unique needs of your firm and the clients you serve. Small advisor-led firms have been able to grow to a point without operational expertise supporting them, but that growth comes at a price. Without proper support you’ll miss opportunities to deepen the client relationships you got into this business to create. Ultimately, as these firms continue to grow, we believe more time and energy will be put into operational efficiencies to ensure less time and energy are spent on the struggles of running your business.