Smaller advisor practices are most likely to feel the pain from the ongoing market convergence and impending DOL changes. This is because smaller firms have limited resources to comply with new rules and regulations.
At the same time, it can be easier and less disruptive for smaller companies to change, especially when it comes to implementing new web-based technologies that can dramatically increase productivity at a fraction of the cost of transitioning from legacy systems within larger firms.
Advisors who are managing assets under $100 million have the greatest opportunity for rapid growth. The industry underserves these businesses, and they can benefit the most from implementing the kind of performance metrics that can accelerate growth and produce a higher valuation if the business is sold.
The key is to begin with a small footprint within a given region, connected through common purpose, shared operating principles, and an unwavering commitment to delivering a high-touch experience at every opportunity.
This provides the essential intelligence necessary to evolve the products and services required to rapidly grow and serve a new national network of independent advisor practices with multiple sources of revenue — from platform services to asset management, succession strategies and beyond.
