Do you ever wonder if the way your practice operates is really setting you up for success? Between staffing, compensation packages, and compliance, it can be a challenge to get an objective look at how you’re actually doing. With that in mind, let’s walk through some of the basics you need to think about – no matter what stage of growth your practice is in.
Does my current setup make sense?
When you first started your practice, you may have been fueled by the excitement of starting your own firm, or partnering with other advisors. You set up your ideal business structure at the time, whether that was an LLC, S-corp or sole proprietor. You got your accountant in place, maybe even hired a few staff for support, put an insurance plan in place, and opened an office. You might have been newly independent, bringing a book of business with you or building your book from the ground up.
Most likely, you spent much time continuing to build that business and servicing your clients. But how is that structure serving you now? Your business has grown, but has the structure grown along with it? How are personal changes in your life affecting your goals now? If you begin with the end in mind, how do you see your business in the next 5 to 10 years?
Tip #1. Take a moment to reflect on where you were at when you started your practice. Jot down a few things that may have changed since you began.
Who and how much?
Staffing is one of the biggest challenges a financial advisor faces in their practice. Whether you started your business a few years ago, or have been in business for twenty years, there might be better ways of hiring and compensating your staff and advisors that make you more competitive – and grow your business at the same time.
Tip #2. Review your staff and compensation structure. Is everyone compensated fairly? Have you incentivized your team for optimal performance? If you need to hire another advisor, would they find your comp plan attractive?
Is my business structure compliant?
Compliance regulations are complex and ever-changing. It’s hard to stay current, and doing the right thing may seem difficult the more you study the regulations. As you examine your staffing and compensation structure, ask yourself the following questions: is it set up to be compliant, and what might need adjusting?
Tip # 3. Write down your three biggest concerns around compliance for your firm’s operating structure.
The bottom line
Success adds complexity to your business. It can be difficult to get a truly objective look at how you’re actually doing, how you stack up against other advisors, and if your business structure is enabling you to achieve your goals.
LPL offers CFO Solutions, your strategic partner who focuses exclusively on translating your business data into actionable insights and plans to optimize your practice. If the answers to these questions are important to you and your practice – or you’d like to discuss other staffing or business optimization strategies for your practice – let’s schedule a 30-minute consultation and talk. Schedule now >>