The prospect of becoming an independent business owner is attractive to many advisors. The freedom and control that comes with ownership, along with the capital building potential, will seem like a compelling choice over switching to another employee model.
However, when it comes to deciding between cashing in on a recruiting deal now or taking the leap to independence, many advisors find themselves caught in the middle—that is, between the proverbial bird in the hand now and the potential down the road through increased profitability. of growth. , and even a sale of some or all of the business.
Especially if you've never made any money, would it make sense to do that first before taking the plunge? Or should you just jump into independence head first with your long term goals in mind?
There are no simple, one-size-fits-all answers, but there are some strategies to help you in the decision-making process.
Jason Diamond takes a deep dive into the topic with Mindy Diamond and shares some guidelines to follow when faced with this important decision, including:
- The growth and legitimacy of the independent space – and the impact on an adviser's decision-making process.
- Monetization options – and how each depends on an advisor's goals.
- Firms with omnichannel connections—and why they've become a go-to option for many advisors.
- “Move once, earn twice” – and what types of advisers this option can attract.
- Succession planning – and what advisors need to know when weighing a retirement plan over other options.
- Short-term versus long-term—and why clarity of goals is one of the most critical aspects of the decision-making process.
- And the questions advisors can ask themselves to determine the right next step.
This is a thorough education of the choices advisors have, as well as the determining factors for each. So whether you're an office consultant considering the best way forward or just looking to familiarize yourself with the ever-changing landscape of the industry, this episode is for you.