To drive growth organically, advisors need to engage in activities that deliver high value to clients. This means they should get out of low-value activities that cost time, money, and brainpower, especially when better alternatives are available. Below are 4 key areas we see firms implementing that are both growing organically and driving margins.
1. Outsource effectively
Spend more time working with clients by outsourcing activities that don’t add value. By identifying and using trusted vendors for services like CFO, compliance, marketing, and tech management, you can still deliver high-quality client experiences. This frees advisors to focus on their growth trajectories. Support efficiency by outsourcing mid-to back-office functions to focus advisors on creating better client experiences to build margin. If a firm can increase its growth rate by three or four percent, it might increase its enterprise value by millions of dollars.
2. Build out your service offering
Clients are looking for additional services. By including them in your offering, you can do more for clients, which creates stickier relationships. Services that clients want and that align well with financial planning include:
- Lending, Insurance, Trust Services, Planning, Focusing on the Business Owner
By adding these outsourced services, you can increase client satisfaction while growing revenue and adding margin points without having to onboard more clients.
3. Get out of the technology business
Don’t waste resources building and managing a tech solution that’s already on the market. Advisors should focus on their core competencies: Helping clients. We see advisors get distracted by the next new shiny solution, and before you know it, they are operating a true “frankenstack”
4. Build portfolios around scaled individuality
Clients value personal touch. But the demands of building and managing custom portfolios are great. To create individual portfolios at scale, advisors need help from an experienced outsourced chief investment officer (OCIO) service. An OCIO can help advisors provide top clients with customized, white-glove experiences while offering managed solutions to all clients. With UMA technology, an OCIO can add individual fixed income, restrict and add alternatives, and deliver customized solutions to the end client, all at scale.
LibertyFi and our network of partners in the Wealth Advisor Growth Network (WAGN) Ecosystem have deep expertise in helping established and breakaway advisors launch and run their RIAs. Contact us to learn how we can help you manage your costs by increasing your efficiency.