Advisors shouldn’t have to create a mega-firm to build a successful practice and enjoy a fulfilling career, according to a recent whitepaper.
In “The Purposeful Advisory Firm: Maximize your firm by design, not default,” SEI Advisor Network suggests that advisors are probably better served maximizing their value within the business model they prefer.
“Most advisors are edging towards a lifestyle practice approach to their business, when the industry is telling them that building an enterprise firm is the way to go,” says John Anderson, managing director, head of practice management solutions at SEI. “There isn’t a lot out there right now to help lifestyle advisors maximize their revenue and assets.”
Lifestyle practices are owned and managed by their founder, who may not be interested in scaling the business or increasing valuation, but focus more on maximizing current cash flow and helping their clients through retirement.