Time for RIAs to Break Out of the Cottage Industry Mold

More often than not, RIAs spend all of their time and energy focusing on their clients and very little on the management of their businesses. Mark Hurley and the Fiduciary Network reported that more than 90% of the independent wealth management industry (approximately 19,000 firms) is made up of tiny enterprises that they termed “books of business.”

Their report noted: “[These firms] do a great job of advising their clients, [but] have low annual revenue, few, if any, capable successor professionals and no obvious strategic plan. In reality, [they] are better described as ‘jobs’ rather than ‘businesses.’”

With over $1 trillion in client assets now managed by independent advisers, isn’t it time these firms emerged from their cottage industry roots and matured into real businesses?

HIRE A DEDICATED COO
KNOW YOUR CLIENTS
EMPOWER THE NEXT GENERATION
BUSINESS DEVELOPMENT CULTURE
UTILIZE VENDORS AND TECHNOLOGY
ENGAGE SOCIAL MEDIA
PUTTING IT ALL TOGETHER

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