Change often starts with discomfort, but identifying the root of the problem is crucial. Are you and your staff constantly battling with your firm to advocate for better client experiences? Whether it’s pricing, product offerings, or technology limitations, these struggles can be signs that the firm’s priorities don’t align with yours.
Recognizing the Signs – When It’s Time to Consider a Change
- Fitting the Mold: What happens when you no longer align with the firm’s vision? You might desire more control over how you market, communicate with clients, or structure services and pricing. If going RIA-only isn’t an option with your current firm, you may feel stifled.
- The “No” Effect: When every request—from hiring staff to communicating with clients—is met with resistance, it feels like fighting uphill. Does your firm default to saying “no” to ideas that could enhance your practice and client experience?
- Misaligned Incentives: Does your firm treat you like the cable company treats its loyal customers? If new advisors receive sizable incentives while long-standing advisors feel neglected, it might be time to reevaluate your relationship.
These are just a few indicators that your firm might not be the right fit anymore. The first step is recognizing these signs and assessing how they impact your business.
Once you’ve identified discomfort, it’s time to explore whether your firm’s structure aligns with your goals.
Exploring Misalignment – Is Your Firm Holding You Back?
- Outgrowing the Firm: If you feel like the smartest person at the table or the odd one out in terms of business operation, it’s a sign you’ve outgrown your firm. Growth requires learning from others and evolving, which may not be possible in your current environment.
- Mandated Products and Lack of Control: Does your firm dictate compensation based on services your clients don’t need, such as mandated banking relationships or financial plans? Are you restricted in expanding your practice, opening new offices, or pursuing outside passions?
- Do You Truly Own Your Business?: If pricing, hiring, marketing strategies, and product offerings are controlled by your firm, how much of your business is truly yours? Recognizing this lack of autonomy can be eye-opening.
Making a change can feel daunting, but it can also lead to freedom and growth.
Taking the Leap – Steps Toward Realigning Your Practice
Here’s how to start the process:
- Evaluate Your Options: Consider platforms like RIAs that offer cutting-edge technology, customizable compliance, and greater control. Evaluate whether you’d benefit from becoming the “house” and running your own practice.
- Define Your Priorities: Determine what matters most—be it technology, client-centric strategies, or autonomy in decision-making. Use these priorities as your guiding compass.
- Seek Expertise and Community: Surround yourself with advisors and mentors who challenge you to grow. If your current firm doesn’t offer this, look for opportunities to connect with like-minded professionals outside your firm.
- Make a Plan: Transitioning requires careful planning. Assess your client base, financial implications, and the resources needed to succeed. Work with consultants or industry experts to ensure a smooth shift.
Remember, change isn’t just about leaving discomfort behind; it’s about embracing a future that better aligns with your goals, values, and vision.
To learn more information on how Focus Financial can support your transition, contact Dave Peck, VP of Business Development.
