Recently, my CEO and I were discussing the range of advisory practice options that are available to advisors today. On one end of the spectrum, there are options for being part of a corporate structure with proprietary infrastructure, but less freedom and customization. On the other end, there are options to operate as a solo practitioner with all the flexibility and yet all the responsibility. There are benefits and trade-offs with both, but some are not as obvious as others.
The corporate structure offers steady pay, vacation and benefits, and usually a well- developed and defined way to do business. Here advisors primary focus on seeing clients under the corporate brand, support staff handles administration (and sometimes investment management and planning), and the technology offering tends to be proprietary, but above average. Independent thinking and the opportunity to customize at a practice level is usually very limited. On the opposite end of the spectrum, the solo RIA controls and handles all the practice functions. While having the ability to customize everything from marketing to investment management to technology, the RIA practitioner also deals with all the “headaches”, managing the staff, administration, vendor relationships, and compliance. With staff, most times the practitioner becomes the H.R. manager. The idea of a vacation every year in a growing and active practice is but a dream in many cases. RIA practitioners tend to be left to figure things out on their own, and usual have minimal time and resources to handle it all.
Where are you and your firm this spectrum, and where would you like to be in your practice? Most advisors do not realize it, but they can achieve an optimal spot where high practice satisfaction and great rewards are available. With many innovative practice solutions in the industry it may be time to explore how your practice can achieve a more efficient and productive state. Dynamic Wealth Advisors was founded specifically for the advisors seeking to optimize their business. We enable advisors to practice how they want, but they don’t have to go it alone. Advisors can spend time with clients and enjoy many of the benefits of a corporate structure, while using their signature, their brand, and without giving up control.