Starting an RIA

Resources and personal connections offer significant advantages. But financial advisors and other experts say they only get new RIAs part of the way.

Much like deciding the right client headcount, choosing whether to fire a customer or turn away new business represents an important step in a firm's development.

The question ties into so many of the factors that distinguish large and small firms, various client niches and decisions about whether or not to hire staff.

Some financial advisors may still hesitate to get on LinkedIn, Facebook, Instagram, YouTube or TikTok. But experts say growing firms need to be on the social platforms.

For a newly launched RIA, its website is one area in which less can be more — but only if the firm's online HQ puts the right visitors on the path to conversion.

Many express frustration with either real or perceived doubts about clients' concerns, but experts say they're missing an opportunity to address them up front.

Attorneys and other compliance experts say it's important that financial advisors greet any type of negative feedback with a thoughtful response — especially if it could turn into a legal matter.

A frequent subject of SEC enforcement complaints and examinations can cause newer firms pain if they don't follow the rules.

Errors and omissions policies may not represent the most exciting aspect of launching an advisory firm, but experts say custodians often require firms to purchase this and other insurance.

The question has turned into something of a paradox because of the related, but different, rise of RIAs and how that has affected independent brokerages.