10 Steps to Independence
January 10, 2011 12:00 AM
10 Steps to Independence
1. Put in the Legwork Upfront
It will lead to long-term security and enable you to do the right thing for your clients.
10 Steps to Independence
2. Remember You Are the Brand
This is really critical. Think about how you will build equity and value to business.
10 Steps to Independence
3. Understand Your Own Strength
Consider who you need on your team. You might need help with marketing and investment management. There are responsibilities you might want to hire others to handle or outsource.
10 Steps to Independence
4. Understand the Regulatory Changes on the Horizon
Speak with counsel about how rule changes might impact your decision-making process. You need to understand what these changes might mean, and if it will impact the way you structure your business.
10 Steps to Independence
5. Rarely a Money Issue
Money may make the world go round, but it isnt the primary reason advisors go independent. Breakaway brokers want more control of their destiny. A lot of brokers saw their employers equity evaporate during the economic crisis. Ultimately, advisors want to do a better job for their clients.
10 Steps to Independence
6. Use Technology
There is technology available to help you operate an efficient and effective practice. The great news is, a lot of providers, including TD Ameritrade, have resources to help advisors understand what products are available and which best suit their needs.
10 Steps to Independence
7. Know the Rules of the Broker Protocol
A lot of folks dont do their homework upfront and that leads to trouble down the road. Advisors need to consult with counsel about how to deal with rules and regulations.
10 Steps to Independence
8. Implement a Good Communication Strategy
Remember that the clients relationship to the advisor is stronger than the clients loyalty to the brand or the firm. About 73% of clients moved to new firm by the end of the first year of transition, partially because advisors utilize the move as an opportunity to rid themselves of the clients they dont necessarily want to keep.
10 Steps to Independence
9. Going Independent Doesnt Mean Going It Alone
Advisors can join an existing firm. That has gotten a lot of traction in recent years.
10 Steps to Independence
10. Be Clear About Your Motives
This will help you map out a lot of the decisions you make down the road. Some might have a mature, loyal client base but are more driven to go independent because of quality of life issues.
10 Steps to Independence
10 Steps to Independence
Have you decided that 2011 is the year to become an independent advisor? Getting there is not as simple as buying the right software, notifying your clients and renting office space. Tom Nally, managing director of institutional sales at TD Ameritrade Institutional, gave us 10 of the best tips for going independent.
