How Small Financial Advisory Firms Can Level-Up their Practices

By Ken South

Originally published in L.A. Business First

In today's asset management business, scalability, footprint and depth of service all add to the growth of a franchise and the stickiness of the client relationships.

When the markets are going straight up with only occasional pullbacks of 5%-10%, the stewardship of a talented advisory team seems a lot less important. Investors can go through low-cost platforms and sort of set it and forget it.

Should your team find itself in this position, here are some steps to consider when growing your financial advising practice by joining an established company.

  • Utilize company resources: One of the benefits of joining an established company is access to resources and support systems that can help you grow your practice. This may include marketing materials, client management software and training programs. Utilize these resources to the fullest extent to help you build your business efficiently and effectively.
  • Expand your services: As your practice grows and you become more established, consider expanding the services you offer to clients. This may include offering additional financial planning services, such as investment management or insurance planning, or branching out into new areas, such as real estate or business consulting.
  • Specialize and differentiate: While it’s important to have a solid foundation in financial planning, specializing in a particular area or niche can help you differentiate yourself and stand out in a crowded field. Consider focusing on a specific client demographic, such as millennials or small business owners, or a particular financial planning area, such as retirement planning or estate planning.
  • Focus on client relationships: Building strong, trusting relationships with your clients is crucial to the success of your practice. Take the time to get to know your clients and their financial goals, and be responsive to their needs and concerns. Regular communication, whether through in-person meetings or through electronic means, can help build trust and strengthen your client relationships.
  • Seek out mentorship: Joining an established company can provide access to experienced financial advisors who can serve as mentors and provide guidance as you build your practice. Look for companies that offer mentorship programs or opportunities to work closely with seasoned advisors.
  • Network and build relationships: Networking and building relationships with other advisors and industry professionals can be key to growing your practice. Look for opportunities within the company to connect with colleagues and seek out industry events and conferences to meet potential clients and referral sources.
  • Stay up-to-date on industry trends and regulations: As a financial advisor, it’s essential to stay up-to-date on industry trends and regulatory changes to provide the best possible service to your clients. Look for opportunities within the company to participate in continuing education and professional development programs to ensure you are providing the most current and accurate advice.

By following these steps and taking advantage of the resources and support provided by an established financial advising company, you can successfully grow your practice and achieve your business goals.

Prior to launching Tower 68 Financial Advisors, this is something our leadership team wrestled with. Because of this, we developed our business model so we could to support other practices that need additional resources and talent to serve their clients better, grow their practices, and feel confident that an understanding of the markets is articulated to them and their clients.

The types of advisory practices Tower 68 can support include:

  • Small practices desiring a greater number of professionals to assist them so they are most productive to their clients.

  • Practices that focus on client relationships but prefer not to support asset management or use highly-diversified bank models.

  • Mature practices looking for a transition of their clients without an interruption to service that their clients have grown accustomed to.

  • Practices being sold that want to be assured that their practices remain as they have been for generations.

If this article resonates for you and your advisory practice, the principals at Tower 68 Financial Advisors would love to have a confidential discussion with you on how we can help you and your practice.


Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific situation with a qualified tax advisor.