How to create a self-sustaining advice firm
Learning to delegate authority and relinquish a hands-on approach is critical when building a self-sustaining financial advice practice, Assured Support unpacks.
The consultancy explored how advice leaders can transition from being a founder-led, key-person-dependent business to a scaleable, self-sustaining enterprise.
To do so, this involves cultivating a practice that can operate effectively on its own without relying on the founder or managing director for daily management.
“This requires scaleable systems, aligned teams, a clear strategic vision, and robust processes that enable the business to thrive independently,” described Sean Graham, managing director at Assured Support.
In particular, he encouraged leaders to assign responsibilities to relevant staff and instead focus working on the business rather than working in the business.
“Transitioning to an actual CEO role involves focusing on strategic priorities, such as growth planning and stakeholder engagement, and embracing the challenge of relinquishing hands-on control,” Graham said.
While this may feel like a loss of agency or control for many founders, Graham recognised, empowering your staff can multiply your impact through others’ expertise.
He added: “Embracing this mindset allows you to focus on steering the business strategically while building trust and capability within your organisation.”
Money Management previously spoke with two consulting professionals who underscored the value of letting go and empowering staff to drive growth, with many leaders often wearing too many hats within the business.
Lana Clark, senior consultant at Vital Business Partners (VBP) owned Elixir Consulting, said being an effective advice leader means recognising you can’t be all things to all people and trusting staff to complete tasks that advisers can easily do themselves.
“Letting go is one of the hardest parts of leadership. We often think the hardest part about becoming a leader is knowing the right thing to do at the right time and then doing it. But in reality, the hardest part is knowing the right thing to do at the right time and then not doing it,” Clark remarked.
“For some of us, it’s easier to continue to do the job ourselves than to watch others struggle through it. This is really common for advisers, who often think ‘it’s quicker for me to do it myself than to spend the time to train someone else to do it’.”
However, this approach can lead to higher key person risk and doesn’t adequately equip junior advisers and back-office staff with the opportunity to make mistakes and grow within the business.
Graham also emphasised the value of talent development when fostering independence in an advice practice by identifying and supporting future leaders who can drive the business’ mission forward.
“Investing in professional development opportunities, such as industry certifications, workshops, and leadership training, ensures your team members can adapt to evolving challenges and responsibilities,” the managing director continued.
Having a trusted “number two” or a second-in-command to handle daily operations can also be transformational for leaders seeking greater work/life balance, according to Pitcher Partners.
These professionals can help an adviser or business owner streamline operations, allowing leaders to delegate responsibilities so they can focus on enhancing profitability and growth.
AUTHOR
Jasmine Siljic
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