The responsibilities of a financial advisor have certainly become more complex.
The demands of servicing wealthy families have clearly increased and the business responsibilities have greatly expanded.
Mike Byrnes, owner of Byrnes Consulting, was quoted in the Financial Planning article titled To team or not to team: The data behind financial advisor growth.
As Mike shares in the article, the challenge with growth is recognizing that the modern advisory business provides many more services than just stock picking, like it did decades ago.
If going it alone, solo advisors end up wearing too many hats:
- Marketing and sales
- Compliance and legal
- Operations
- Technology
- Human resources
- Client service
- Management
Without vast resources, an advisor can become a one-man band. This can result in being spread too thin, increasing the risk of burnout, mistakes, and slow growth.
The benefits of the team approach:
- Higher profitability, allowing for reinvestment in growth
- Stronger marketing execution, which often gets deprioritized by solo advisors
- Fewer inefficiencies
- Economies of scale through shared resources and technology
- Better succession planning without needing an outside sale
When advisors are doing less of the “grunt work,” they can focus on what they do best: serving clients, building relationships and growing the business.
Marketing is important to help drive organic growth, but not all advisors love doing it. A team structure can help solve that problem by aligning skills with responsibilities. Especially today, someone must take ownership of artificial intelligence (AI) strategy and implementation.
Advisors who want to grow organically need to stop trying to do everything themselves, instead building businesses designed to scale.
Need help accelerating your growth? Want to create or improve a team structure?
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