How to Build a Firm that Runs Without You

Your business was built around you. That makes sense right? It is your business after all. Many advisor-led firms are built around the success of their founder. The early success of the business generally reinforces this belief as clients flock to the firm to work with the advisor. Business processes develop around direct input from leaders, and over time they lead to the creation of a business that ultimately cannot run without you. When was the last time the founder of a small firm felt they could take a vacation without working? This is a result of the tension caused by a business built around their founder. Eventually growth feels capped, founders find themselves unable to step away, and they constantly suffer from decision fatigue.

At the heart of this struggle is the common problem that founders become the system their business relies on for success. When leaders are forced into daily decision-making, employees lose autonomy. The relationships advisors build are crucial to firm revenue, but daily business frustrations often take leaders out of client meetings. When teams are constantly asking for approval, processes are in the head of the leader instead of clear on paper, and things inevitably stall when leaders step away, it’s clear that systems must be built for firm growth to continue without their founders.

The solution begins with a simple shift in founder mindset: from producer to architect. Leaders step back from doing the work in order to design how the work gets done.  Building the operational foundation for success is simple, but not easy. First, every team member must know what they own. Taking the time to clearly define roles and responsibilities is crucial to taking leaders out of daily decisions. Next, defined workflows also create repeatable processes that team members can look to when they have questions. Finally, creating decision frameworks with tools, like EOS or If/Then decision trees, allow teams to clearly know what decisions to make and which to escalate, leading to fewer questions for leaders. These key items prevent bottlenecks and allow business to flow even when leaders are not there.

Making these changes does not require leaders to change who they are, or to take themselves out of the process. When founders take the time to work with the proper resources they find they have more time to spend with their clients, work on larger business strategy, or simply enjoy a bit of personal time. Meanwhile, teams are empowered to increase their ownership and role confidence. Research from Gallup shows that empowered teams lead to higher profitability, productivity, and client satisfaction. Founders and teams grow all while the business sees more constituent client experiences and scaling without hitting the common break points other firms hit along the way.

A business that runs without you is a business that can truly grow. Without taking yourself out of the process entirely, proper operational structure can create a firm that runs smoothly without constant intervention and still reflects the vision you set out to build. If your firm still depends on you more than you’d like, you’re not alone. Surround yourself with the right experts early to find successful growth for life.