RIAs: What’s Your Business Model Look Like?

orghartAdvisors are often running a practice that is quite different from the type of practice they went independent to run.  Their business model is often one reasons they end up frustrated and feeling overwhelmed.

Working on (or towards) the “right” business model is extremely important — and something to decide upon before improving a firm’s operations and marketing.

Since I work with clients on developing their ideal practices, the subject of business models comes up very early as we work together.

In September I’ll complete a report that includes samples of the various types of advisory business models along with organizations charges.   Below I’ve listed a few types of models I’ll include.

I can use your help.

You Game?

2 QUESTIONS for RIAs & Advisors to Answer

1.  Is the way you operate your firm noted below?  If not, can you let me know more about your business model?

2.  If you changed your business model, what model did you previous have.  Why did you change models?   Which model do you have now?


If you’d prefer to tell me privately, email me at linkedin @ ElevatingYourBusiness . com  — just remove all the spaces.  Otherwise you can tell me in the comment area.  Feel free to also leave the name of your firm and your website URL too.   This way if I have any questions I can easily contact you.

I am looking forward to your expertise in this area!

Solo Business With Office
Owner-Advisor.  May have a very small team, hired on a low budget, often first hires are family members.   First 3-5 years usually involves an excessive amount of training and turnover.  Owner is involved in both production and management of staff.  At exit time, the only book of business to sell is that of the owner.  Some advisors would like to purchase a turn-key solo practice while others want to have their own hires.

Solo Business With Virtual Office
Same as above, but with a fully virtual office.

Solo PLUS Business
Owner-Advisor plus multiple other independent-advisors who retain existing clients and share in the overhead expenses of the office, technology, support staff, operations costs, etc.  Owner advisor is involved in production, bringing in new advisors and the management of staff. When everyone has their own book, the only book the owner has to sell at exit time, is that of the owner-advisor.  There  an office (or offices).  Can also be virtual offices.  New owner-advisor may want a ready made office with independent advisors, other buyers may not.

Ensemble Business
Owner-advisor plus associates and junior team members who share clients that belong to the firm.  As time goes on, a Sales Manger is brought in.  An Office Manager is hired who also has excellent people skills and who over time will also manages staff.  Clients get accustomed from the get-go of working with the team, not just one Advisor. For sale at exit is the firms’ book of business, office space and team — a turn key company.

Thank you in advance for your insights.

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