- Growing your advisory business takes commitment and work
- For those willing to take on the challenge, there are several areas of opportunity
- Advisors can capitalize on the expected transfer of wealth between generations, the expected wave of retirements among older advisors, and referrals from other professionals
Have you ever had people tell you they’re too busy? It’s an excuse we give others as well as ourselves and it really just means I don’t want to or No, thank you. It’s the ultimate procrastination tool. But when we want to get something done, somehow we find the time. While the busy excuse can be the little white lie we tell the door-to-door salesman so we can get on with our lives, the problem is that when you tell yourself you’re too busy it can have lasting effects.
In my role, I talk to a lot of advisors, and they often ask me what other advisors are doing and whether it is working. They tell me they’d like to grow their business and ask me what they can do. The question we all have to ask ourselves when we want change is if we are ready to do the work or not. Too many times we look for the easy answer or a magic formula that helps us execute. When I pose the commitment to doing the work question to an advisor, I often see an instinctive response flash across their face—always in the positive. However, as the conversation develops, the truth comes out. While growth is desired, the work to achieve it can be daunting. Often, when faced with the reality of how much work is involved, the desire to grow begins to fade. It always seems as though, I want to grow is the right thing to say, but sometimes it is not what’s really wanted, at least not enough to dedicate real time, energy, and effort into a plan.
For those who are ready to embark and take on the necessary work, there are a few areas of great opportunity to build a growing and thriving practice.
Transfer of wealth
We are already seeing the beginning of the tremendous wealth transfer transitioning from Baby Boomers to their Generation X or Millennial children and down the line. The amount of wealth that is projected to move between generations is staggering, and the opportunity for advisors is huge in two ways: Retirement and acquisition.
It’s currently estimated that more than 100,000 advisors will retire in the next 10 years.1 These advisors control almost 40% of industry assets or more than $10 trillion dollars. That’s a lot of money in motion that can be captured as their clients (and in turn, their heirs) may be looking for a new advisor to work with. This could be a fantastic way to gather meaningful assets from individuals and families who’ve been prudent in their strategy and understand the importance of professional guidance. So, keep your ears and eyes open for accounts transferring out of another advisor’s business. Even within your current book, there may be clients who are considering transferring wealth to the next generation and need guidance.