Questions advisers should consider when considering a change

Is your business growing?

If it is growing, are you growing steadily and efficiently? Is your current broker-dealer affiliation fostering this growth and translating your increased revenue into additional support? Does the math make sense?
When is it time to consider a change? Here are five key signs:

1. If you grow only to find the more revenue you gross, the less you actually net.

2. If your increased revenue goes toward corporate overhead rather than providing more support to enable more time for prospecting.

3. If you don’t have the staff and systems in place to service existing clients.

4. If you only have the bandwidth to service existing clients, but not the time to prospect for new clients.

5. If bringing on new clients would result in a decline in service standards due to lack of support.

Should you go independent?

If you want more control over deciding how and where to allocate your revenue, going independent may be the growth solution you are looking for. Finding a broker dealer supporting your unique needs and client base will be your next step. Your broker-dealer due diligence should include analyzing which firms offer the appropriate technology, compliance, marketing support and responsive customer service to help you leverage your business.

Should you change broker-dealers?

If you’re an independent advisor, but are considering switching broker dealers, where are the gaps in service? Why am I not running my business as efficiently as I could? Determine which factors are preventing you from growing steadily or preventing you from properly helping your clients.

The Bottomline….

Often, financial advisors don’t make time to scrutinize the financials of their own businesses. Analyzing payouts and expenses, as well as their services and capabilities to determine whether an opportunity with a different affiliation would help grow their businesses in a way that maximizes their margins.

If the number make sense you can enjoy peace of mind. If not, it may be time to consider a change.

This blog post was excerpted from The Advisor Center Blog.