Recruiting a diverse team also fosters innovation and adaptability. A workforce that combines traditional expertise with modern perspectives is better equipped to navigate industry changes. Firms should also consider implementing mentorship programs that pair experienced advisors with newer team members. This collaboration can facilitate knowledge transfer, bolster confidence and create a culture of continuous learning.
3. Lean into configurable technology and integrations.
Unlike the wirehouse model, independence allows for adoption of agile technology, which advisors should prioritize. This flexibility enables RIAs to integrate solutions rapidly, enhancing efficiency and scalability. A recent survey from Fidelity shows that firms embracing tech-related best practices report higher-than-average efficiency, stronger growth, better client experiences and increased advisor satisfaction.
According to the survey, tech-forward firms experienced a client growth rate of 20% compared to 8% for others and double the average assets under management growth rate (22% versus 11%). Additionally, advisors at “digitally empowered” firms reported higher career satisfaction (81% versus 59%), greater firm satisfaction (64% versus 44%), and higher average compensation ($489,000 versus $373,000).
4. Build strategic partnerships.
Building strategic partnerships can enhance service offerings and remove barriers to growth. By collaborating with such specialists as CPAs, estate attorneys and other professionals, RIAs can provide a more comprehensive suite of services.
Clients increasingly desire a “family office” experience, where all their financial needs are managed under one roof. However, not every advisory firm has the in-house expertise to meet these diverse demands. This is where strategic partnerships come into play.
By creating a robust network of specialists, RIAs can offer clients access to tax planning, legal advice, estate planning and more — all while ensuring that they receive top-tier service.
Collaborating with experts in different fields also fosters a referral network that can lead to new client opportunities. For example, a CPA may refer clients to an RIA for investment management, while the RIA can direct clients to the CPA for tax-related matters. This reciprocal relationship strengthens both businesses and enhances the overall value provided to clients.
5. Remember, agility Is your superpower.
Independence often goes hand-in-hand with an entrepreneurial spirit. This freedom allows advisors to make swift decisions that benefit clients and adapt quickly to market changes. Advisors should leverage this agility in time-sensitive environments, as competitors with different models may struggle to keep pace.
By embracing these strategies, independent advisors can grow their practices while providing exceptional value to clients, which remains at the center of the wealth management universe.
Robert B. Tamarkin is a founding partner and head of business development at Elevation Point, a firm that provides the resources and collaborative culture to help advisors build and grow their own businesses.
