Every advisory firm runs into periodic growth plateaus. A firm might start by streamlining workflows, then hiring an administrative assistant, and bringing on additional advisors. Most advisors will decide on a minimum AUM level, which typically increases over time. In the early years, a lot of the growth bottlenecks are relatively simple to figure out, but there comes a point where firms begin to struggle a lot more. We most often find the difficulties arising in firms with 2 to 10 advisors, because the challenges get more complicated. Here I’m going to show how we designed our firm to help advisors overcome the common hurdles that can keep a team indefinitely stuck if not addressed.
Educational Approach
I started out as a CPA and made a series of discoveries that led me to realize that tax planning would allow me to make a greater contribution to my clients. But eventually, I hit the same brick wall that every business inevitably does finding a way to scale. I came to realize that working with financial planners in a behind-the-scenes role was the best way to grow my business. That led to the decision to focus on advisor education as the core of our business model. We now can make a difference for an exponentially greater number of clients, since we now help them indirectly by way of their advisors.
The Family Office Model
The family office model is one of the most powerful yet underutilized tools in the financial planning industry. The idea is not complicated. Instead of referring out tax-planning services, the advisor stays engaged in the process from beginning to end. When you bring a CPA into the process, you introduce them as a member of your team. The family office model is a crucial part of what allows us to scale our business (and our advisors’ businesses) because we don’t stop with training. When an advisor works with us, we provide credentialed back-office support and coach advisors while they develop tax strategies for their clients. The natural synergy allows us to laser-focus our time and energy. Our advisor partners achieve scale in their practices by dramatically increasing their profitability per client.
A Talent Ecosystem
As we continue to work with new advisors and watch their skills improve as they master the skills required for in-house tax planning, we’ve noticed a network of specialists developing around us. One unique benefit of the family office model: professionals who work together in this manner develop a much more in-depth understanding of each other’s specialties vs. the conventional model of giving third-party referrals. We’re starting to see bigger and more exciting opportunities emerge as a result of the relationships that our advisor partners are forming, not only with us but also with the peer professionals in their networks who now recognize what they bring to the table.
We Are Here for You
Scaling a financial advisory firm is not easy. If you are reaching a point where growth has begun to require more effort and expense and where the bottlenecks are getting harder to find, give us a call and we’ll set up a conversation to see if our model might be a fit for your firm. If you’d like to learn more about how to work with us, click below to schedule a consultation.
About Heath
Heath Walters is a strategic tax planning specialist who partners with financial planners to provide behind-the-scenes tax planning expertise for the high-net-worth clients of financial planning firms. With over 20 years of experience as a CPA and Certified Tax Coach, Heath helps financial planning firms set themselves apart to ideal clients through coaching and specialized services that complement traditional wealth management solutions. Heath’s proven process for client acquisition has led to many advisors doubling their book of business in as little as 24 months. Heath has both a bachelor’s degree in accounting and Master of Science in Accounting from Appalachian State University. When he’s not helping financial planners reach their firm’s goals, you can find him spending time with his wife, Nancy, and their three children, Allie, Brianna, and Cooper, or fishing, grilling, and tackling family remodeling projects. He’s an avid Roll Tide fan as well. To learn more about Heath, connect with him on LinkedIn.
