As independent advisors grow their businesses, they often fail to capitalize on the unique characteristics that set them apart from legacy and big-brand competitors, according to a white paper by SEI.
The paper, titled ‘Dotting the I’s: How Independence, Integration and Intelligence can Transform your Practice into a Sustainable Business,’ offers an in-depth look at the strategies and techniques necessary to successfully manage growth. It highlights the importance of multi-faceted thinking and a holistic approach to expansion.
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John Anderson, head of Practice Management for the SEI Advisor Network, said: The independent RIA segment has experienced incredible growth since 2005 and we don’t see any signs of that pace slowing. As such, many advisors have the opportunity to branch out, but seem to be unprepared for what they encounter once they do. However, capitalizing on the very strengths that differentiate their firm – independence, integration, and intelligence – can help them flourish as business owners. Taking stock of these attributes and understanding how to apply them as they evolve is key to advisor business growth."
A recent SEI poll revealed that nearly two-thirds of respondents identified themselves largely as advisors, rather than business owners. This highlights the need for guidance and best practices when it comes to business management.
The white paper focuses on leveraging independence, integration, and intelligence to build an advisory firm. According to the paper, the ‘three I’s’ build upon one another to form a pyramid. At the base of the pyramid, independence is an advisor’s most basic asset and allows the advisor to make business decisions that are in the firm’s best interest.
Integration is the second tier and is critical to advisor and firm efficiency. At the top of the pyramid, intelligence means leveraging a firm’s intellectual capital and finding the right balance between managing client relationships and making effective decisions.
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By GlobalDataBill Glubiak, CEO of Cedar Brook Financial Partners of Cleveland, Ohio, said: "Investments are changing, client expectations are changing and to be successful, advisors have to think beyond individual relationships to institutionalized business practices. From implementing new client service processes to integrating new technology everyone on the team has to be prepared to adapt. Maintaining a focus on the ‘three I’s’ gives you the framework needed to handle the complex, diverse situations you will face in building a sustainable business."
