Owners of advisory firms should learn to let go, so they can get the resources they need and have the focus and time required to grow their businesses.
My consulting business has the exact opposite problem of most independent advisory businesses. In my business, I tend to spend more time on the business — thinking about new ways to help advisory firm owners and how to get that information out to more of them — than I do working in my business.
In contrast, most advisory firm owners (at least most of the owners that I’ve come across) are far more likely to spend their time working with clients than working on their businesses. This can create problems.
The owners of today’s advisory firms that are generating $2 million or more in annual revenue who wish to grow their businesses toward the $1 billion in client assets-under-management mark (or roughly $10 million or so annual revenue) need to appoint or hire a full-time CEO to guide them to their goal.
However, most smaller advisory firm owners — with more modest growth goals — don’t have the resources to support full-time management, either by filing the role themselves, let alone hiring an outside professional.
But that doesn’t mean that these firms wouldn’t benefit from having someone working on the business — that is, thinking about ways for their firm to be larger, more profitable, and more successful.