Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.
Ah, the age-old dilemma: to leave or not to leave.
We've all been there at one point – stuck at a firm we are not satisfied with, perhaps feeling out of control or underpaid, lacking flexibility and work-life balance. Likely, it led you to question whether you should break loose, start your own RIA, and build your business your way from the ground up.
Before you give your notice and clean out your desk, there are some careful considerations to make. After all, leaving an established firm to go out on your own might solve some of your problems, but they will be replaced by a new host of obstacles and challenges.
That's not to say that you shouldn't go out on your own, but before you do, put some thought into whether it's the right move. Do you have a business plan? A rough idea of how you plan to bring in business? An estimate of your costs?
Consider these important aspects of your business:
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Time: Starting your own RIA requires a significant level of time and dedication, as you will be required (at least at the beginning) to juggle many new responsibilities. Are you prepared to wear numerous hats? Do you have the time and energy to throw yourself into establishing and scaling your new business?
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Compliance: When you break off on your own, compliance is your responsibility. While it's always an option to outsource this role or to hire a chief compliance officer, the responsibility ultimately is yours.
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Resources: Consider all the efficiencies built into your existing firm, including marketing, technology, and innovations. Are you willing to risk those resources? Be mindful of your costs. Can you afford to pay for these resources on your own?
If you've thought through your options and have concluded that you're ready to take the leap, we are excited for you and rooting for you. Starting your own RIA is an exhilarating time, with seemingly limitless possibilities. And the best part? You don't have to do it all on your own. Joining an RIA platform with robust resources provides the solutions to your assorted concerns.
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Time: A major pro to choosing an RIA platform is the option to outsource key functions that you don’t have the resources to cover. Passing off certain responsibilities means you will have more time to spend focusing on how to best serve your clients.
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Compliance: While compliance is costly and time consuming, it shouldn’t be the reason you stay at a firm that doesn’t align with your vision or values. The best option for independent RIAs is to become a member firm in a financial network that assists with compliance coverage. These networks deal with the logistical details so that you don't have to.
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Resources: Joining an RIA platform is a win-win situation. You're able to maintain your autonomous brand and run your business the way you want to, and many of the time-consuming back end tasks and costly resources are covered so that you're able to focus on client-facing services.
Bridget Grimes and Katie Burke co-founded Equita Financial Network out of a need to fuel business success while empowering other women in the financial services industry. Equita became the first platform solely focused on women-led financial planning firms, designed to encourage women to make the leap into launching their own practice and provide solutions to support them every step of the way. Equita is a way for like-minded women to not only share resources and run their business at an affordable cost, but to also share ideas on everything from best practices to help with questions regarding client issues.
Equita Financial Network helps female financial advisors pursue an independent path, take more control of their business, gain access to better career opportunities, and boost their overall sense of freedom. If you’re ready to break away from your current firm and go independent, reach out to the Equita team.
Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.
