To grow your advisory business, hiring a chief executive officer is a good first step, but it’s a tricky one
The goal for many of today’s independent advisory firms is to grow to $1 billion in client assets under management. However, to get there, these businesses need a chief executive officer who is dedicated full-time to running and growing the business.
To fill this role, the founding owners of firms must decide whether they want the CEO job, or want someone from either inside or outside their firm to fill that role. Although it’s a difficult decision, most firm owners still prefer to take the job themselves. Yet a growing percentage seem to be taking a different direction: either promoting someone from within, or bringing in an outsider to fill the CEO role.
Granted, it’s a tough decision for most firm owners to stop working with clients and/or to stop becoming the rainmaker for new clients. Yet it seems just as difficult for many firm owners to let a new CEO actually serve as the CEO. This can create many problems within their firms — and seriously jeopardize the future of their businesses.