By Steve Kulesza, CFP®, Dynamic Chief Business Development Officer
You’ve built a thriving financial advisory practice within a Wirehouse or Independent Broker Dealer (IBD), but to take your business—and your personal life—to the next level, it’s time for a change. To gain the autonomy you need for both your clients and your family, you must break free from the constraints of your captive environment. Yet, severing ties is a daunting task, especially when it means leaving behind technology, back-office support, and compliance assistance.
There are plenty of solutions to fill these gaps, but the universe of options can be overwhelming. This article outlines the top three considerations that will help you confidently transition to independence without sacrificing the essential components that keep your business running smoothly.
Consideration #1: Investigate Technology Support
The last thing you want is to spend time solving technology problems when you could be focusing on revenue-generating activities and serving your clients. A chief concern for many breakaway brokers is choosing the right technology platform. While every provider will showcase their solution as the best, the devil is in the details.
- Read the Fine Print: Beyond the flashy features, you need to know how much support the platform offers for integration with your existing systems. Even the most sophisticated software is useless if it doesn’t integrate smoothly with your financial planning tools or custodian.
- Cost Transparency: Ensure that the technology support you need is included in the fees, not as an expensive add-on. If troubleshooting or assistance comes with hefty fees, it will erode the efficiencies the technology is supposed to provide.
The best platform is one that allows you to focus on your business while providing prompt, reliable support when problems arise.
Consideration #2: Examine Client Support
As important as technology is, client support is the backbone of your practice. If you’re spending time handling client inquiries or administrative issues, you’re not growing your business. At a Wirehouse or IBD, you typically have an in-house team to lean on. When you go independent, you’ll need to recreate or even improve that support system.
- Identify Support Needs: Before seeking a solution, figure out what level of client support you’ll need to free yourself for high-value tasks.
- Choose the Right Model: Options for client support are plentiful. You can hire in-person staff, utilize virtual assistants, or outsource client services entirely. The key is to find the solution that aligns with your practice’s scale, your clients’ expectations, and your lifestyle.
By securing strong client support, you’ll have more time to focus on what matters most—serving clients and growing your practice.
Consideration #3: Understand Your Bottom Line
In a survey of breakaway financial advisors, Cerulli Associates identified the top three reasons that advisors go independent1:
- Greater autonomy: 62%
- Higher payout: 57%
- Building a practice for sale or succession: 54%
These are likely the same reasons driving you to seek independence. However, don’t get caught up in platforms offering shiny solutions at the expense of your ultimate goals.
- Avoid Short-Term Thinking: While certain platforms may seem attractive at first glance, you need to ensure they provide long-term value. Skimping on support or reliability can hurt you down the road, forcing you into a new set of constraints.
- Keep the Big Picture in Mind: Whether you’re building a legacy, increasing profitability, or planning a succession, ensure that the platform you choose helps you meet these goals. Opt for a platform that gives you the freedom to grow while addressing the needs of your business, your clients, and your family.
Deciding to leave the security of your current firm is a major step, but with the right preparation and careful selection of partners, it can lead to greater autonomy, higher payouts, and a more fulfilling life. Whether it’s technology, client support, or your overall business goals, the key is to find solutions that truly support your independence.
The right partners, like Dynamic Advisor Solutions, can offer a range of investment options, technology support, and back-office services that enable you to spend more time where it counts—on your clients and your future. Make sure the choice you make empowers your business, not limits it.
For a complimentary consultation, please contact Dynamic at (888) 997-4212 or joinus@dynamicadvisorsolutions.com.
