Growth Stages
The successful pricing of the Focus
Financial IPO is a milestone event.
Unfortunately the event conjured up an old Wall Street missive in my
head – buy on the rumor, sell on the news.
How can we use this pithy saying to help us with our independent wealth
management practice? We will share our
thoughts with you in this week’s blog.
Wealth Management 1.0
The greying
of the RIA industry has driven Wealth Management 1.0. When reality hits and
older advisors realize they need to monetize their practice they look for
buyers. DeVoe
and Company tracks these transactions and identifies the major
players. This trend still has longer to
run but it is closer to the end than the beginning. An iPhone 5 still works but are you thinking
about an upgrade?
Wealth Management 2.0
If you are planning on keeping your firm you need to
consider the tools you will need to compete going forward. The tools are not cheap but the Bill Good belief that we must continually
invest in our firm is a lesson we should all embrace. My experience shows that as we evolve we must
embrace, Social Media, our fee schedule and our technology. A blog or a conference will help but an experienced
manger to oversee the implementation is also needed. Mark Tibergien
threw some cold water on this idea saying he has witnessed that established
firms that hire professional managers have a difficult time implanting their
advice. Especially if it requires the
firm to change their established practices.
Organic Growth
The transition to Wealth Management 2.0 will require a
guide. Most of the growth in 1.0 was inorganic
through corporate transactions and recruiting. Our next
stage of growth needs to be organic.
Organic growth focusses on growing our current business. That type of growth will require a training
professional and an established training program. Sounds expensive. It is, but a good training professional should
pay for themselves with the organic growth they will lead.
Steve
Jobs' genius can help us here. He
said don’t build what consumers want today, build what they will need tomorrow.
Easier said than done but we need to start working on a 2.0 version ASAP.
Nobody will write a step by step solution for you and we know your iPhone 5
still works.
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