The Massive Growth Mindset—A Blog for Financial Advisors
Welcome to the ultimate resource for financial advisors seeking rapid growth and success in their practice! In today’s dynamic and ever-changing financial landscape, staying ahead of the curve is paramount. My blog is your trusted companion on this journey, offering valuable insights, strategies, and tips to supercharge your advisory business. Whether you are just starting or looking to elevate your existing practice, we’ve got you covered. Get ready to unlock the secrets of exponential growth and achieve your goals faster than ever before! I will cover a wide range of topics, all designed to accelerate your growth and put you on the path to doubling your revenue in five years or less.
Knowing When to Leap—Words of Wisdom from Someone Who’s Leapt
In the fable of the boiling frog, a frog placed in a pot of tepid water will remain there as the temperature gradually rises, eventually boiling to death without realizing the danger until it’s too late. This cautionary tale is a metaphor for how individuals can find themselves trapped in unfavorable situations, often failing to recognize the need to change until circumstances become dire.
Similarly, within the realm of broker dealer firms, financial professionals can sometimes find themselves in environments that become increasingly challenging and restrictive over time. Like the unsuspecting frog, they may tolerate incremental changes and inconveniences until the situation reaches a tipping point. However, just as the frog could have leaped to safety at any moment, there comes a time when financial advisors must evaluate whether remaining with their current firm is truly in their best interest.
In this blog, we’ll delve into the nuances of recognizing when it’s time to leave your current broker dealer firm. We’ll explore the signs indicating that the water is heating up, metaphorically speaking, and discuss the factors to consider when contemplating a transition. From evolving business models to shifting industry regulations, broker-dealer firms can make conducting business feel increasingly difficult but knowing when to make a change can lead to newfound freedom and professional fulfillment.
Being With a Firm is Like Being in a Relationship
In any relationship, there is the good, the not-so-good, and the bad. The same goes for your connection with a broker dealer/RIA firm. When things are going well, your practice thrives, and you are highly productive. But in an unhealthy relationship with a firm, your enthusiasm to grow and run your business wanes, and eventually, productivity stalls or declines. It is crucial to consider a change at this point. Many an advisor has stuck around hoping that their firm will make big changes, but that almost never happens. A tiger never changes its stripes and to hope that it will is a futile effort. More than likely, if a change is to be made, it will have to be made by you. So, the question is, if you are in a relationship with a firm that is not meeting your needs, when should you make the leap? The answer is as soon as you reasonably can. Don’t become the proverbial frog that remains in the water as it continues to heat up.
The L.E.A.P. Process
I’m not suggesting that you go into your office tomorrow morning and fire off your resignation letter. NO, that would be insane! It’s no secret that leaving a firm to join another can be a difficult, emotional experience that requires immense preparation. I’m suggesting to begin the process of discovering what an ideal fit for you and your team would look and feel like. Your goal should be to identify a firm that can help you become the best version of the financial advisor you can be. To that end I’ve developed a method to assist you with this important task. I call it the L.E.A.P. process which is more of a “look before you leap” exercise. It is designed to help you think critically and objectively and it is the process I went through when I was contemplating making a firm change. Going through this process provided me the insight I needed to come to the realization I was with the wrong firm and made my choice of a new firm, crystal clear.
The L.E.A.P. Process—Learn. Evaluate. Assemble a plan. Proceed
Learn: Learn what is important to you and what your options are. The learning process will help you define who you are, what you need and what you are looking for in a firm. To make your next move your last, it is vital that your core values are aligned. This is also the time to begin gathering information on firms you may be interested in. I would recommend collecting intelligence on at least three firms so that you can evaluate your best options. Speaking to other advisors who have made the move can also give you great insight into potential firms. Hearing them talk about their process and rationale for choosing their current firm can help you narrow the scope.
Evaluate: It’s time to inspect and evaluate firms to see which ones are potentially a good fit. This is the due diligence part of the process and should include an extensive interview with at least three firms. To help you measure the strengths and weaknesses of each firm and organize your results, I would suggest using a spreadsheet that lists all the items that are important to you across the top and the firms you have an interest in down the left side. Include your current firm on the spreadsheet so that you can see how they stack up. On your spreadsheet, keep score of how the firms rate in each category. Or, if you’d rather just hit the Easy-Button, at the end of this blog, I’ll give you access to my Firm Interview Scoring Sheet designed to help advisors through the firm interview process.
To help you fully evaluate, consider visiting the firm’s corporate offices if possible. The corporate interview should include scheduled time with senior leadership, technology, investment management, practice transition, compliance, marketing and branding, compensation, etc. Your objective is to go beyond the nice exterior and look under the hood. You need to know they have the ability and resources to deliver the advisor experience you require and want. By the end of the evaluation process, you should have enough data to narrow your choice to one firm.
Assemble a plan: Now that you have identified a firm that aligns with your core values and can deliver a suitable advisor experience, it’s time to create your exit strategy. Your exit strategy will include three phases:
- Pre-transition Phase: The pre-transition phase is all about preparing you, your team, and your practice for the move. Your new firm should assign you a dedicated team of transition specialists that will work with you every step of the way. In this phase, you will gather client data, strategize communication plans, and get familiar with the technology and account opening systems. This phase will take 60 to 180 days to complete all the necessary work to prep your practice for a successful transition. This is also a good time to think about offloading clients that you no longer wish to work with.
- Transition Phase: The transition phase commences with formalizing the move, navigating regulatory requirements, and transitioning client accounts seamlessly to your new firm. Here you’ll manage client expectations, communicate the change effectively, and ensure regulatory compliance throughout the process. The goal is to successfully transition 80% of your AUM within 120 days. All the prep work during the pre-transition phase will help make this possible. Within 6 to 8 months, you should be able to transition 90% plus of your AUM.
- Post-Transition: Finally, the post-transition phase focuses on solidifying relationships with clients in the new environment, leveraging the resources and support of the new firm to enhance service offerings and grow your practice. It’s a period of adaption, where you will integrate into the culture of the new firm while continuing to provide exceptional financial guidance to your clients.
Before you know it, you’ll be back to the business of doing business, but in an ideal environment where you can focus on the things that matter most.
Proceed: You’ve done your due diligence and have chosen your ideal firm, now it’s time to make the leap. Armed with a clear vision of your objectives and the support of your chosen firm, you’re poised to take the next step in your career journey. Embrace this opportunity with enthusiasm, knowing you’re embarking on a path that aligns with your aspirations and values. With careful planning and diligent execution, you’re well-equipped to navigate this transition successfully and emerge stronger on the other side.
Don’t Make It About the Money
If you prioritize money when choosing a new firm, you might regret your decision. Remember, along with a hefty check often comes a significant commitment in the form of a forgivable loan that can span up to ten years. While financial assistance is crucial for your transition, don’t let the allure of a big check blind you. Instead, focus on the factors that foster unhindered growth for your practice, efficient business operations, and exceptional client experiences. Money is a bonus, but it shouldn’t overshadow what truly matters. As Albert Einstein wisely said, “The important thing is to keep the important thing the important thing.” Let these words guide your decision-making process as you plan your leap.
The Grass Can Truly Be Greener
It’s not a myth. You can find yourself in a place where the grass truly is greener on the other side. A place where both personal and business satisfaction can increase dramatically. By conducting thorough research and deciding wisely, you can find yourself in a place where thriving is a reality. When you do, you’ll rediscover happiness, rejuvenation, and renewed zeal for your work. And perhaps more importantly, your clients will see a difference. They’ll appreciate the added value they receive and thank you for it.
Moral of the Story
Don’t be the frog simmering in gradually boiling water, ignoring the danger. When faced with increasing obstacles that impede your ability to serve your clients effectively or achieve your professional goals, you should not hesitate to consider alternative paths. The moral of the story reminds us that proactive decision-making, even when it involves leaving familiar territories, can pave the way for growth, opportunity, and ultimately, greater success.
Take Knowing When to Leap Survey
Thank you for taking time to read this addition of The Massive Growth Mindset—A Blog for Financial Advisors. I hope you were enlightened and discovered new ideas to help you on your path to massive growth. As you navigate the ever-evolving financial advisor landscape, remember that knowledge is your greatest asset. Here’s to your prosperous future!
A little about my firm, Elevare Advisors, Inc. Our mission is four-fold: to help you grow, give you critical resources, empower you to take care of your clients, and maximize your compensation. We strive to provide our advisors and the clients they serve with an extraordinary experience. If you would like to explore more about the topic of this blog or how we can help you on your growth journey, I would invite you click on the link below and let’s connect.
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