5 Tips for a Smooth Transition to Independence
So, you’re ready to take the leap and start your own RIA…now what? It can be nerve-wracking to leave the security of a broker-dealer, but we know reward is worth the risk. To help you in your transition, we’ve put together our top 5 tips to make it go smoothly.
Think About What You Want – This might be the first time in your career where you have the freedom to think about what you truly want. Transitioning to an RIA from a captive firm means you are now in charge of deciding how your workdays look. Take note of what is important to you—whether that’s work-life balance, increasing your income or Implementing changes in the way that you deliver value to your client base.
Outsource What You Don’t - Make a list of the everyday tasks and responsibilities that excite you—then make a list of the ones that don’t. Being your own boss means learning how to delegate and outsource the things that you don’t enjoy taking up your time. Also recognize that your preferences today may not reflect your preferences down the road. Having the flexibility to take the wheel yourself while also having the opportunity to let someone else drive is a can make a big difference in your fulfillment as an Independent Advisor.
Pro tip: let our experienced professionals handle the parts of your business you don’t want to.
Identify Your Ideal Client – There are probably some clients who you have really enjoyed working with and would like to find more of! Think about the qualities that make up your ideal client. Do the live in a certain area or tend to work in a particular industry? Do you get fulfillment out of work with the busy executive or helping to guide individuals during key life transitions? Narrowing your focus may seem counterintuitive to growing – but it allows you to quickly identify the right prospects in a crowded marketplace.
Plan a “Transition Day” (or Days) – You may be limited on making progress on many essential transition activities until after you have official resigned (or perhaps longer) for the firm you are leaving. We recommend Advisors have a clear plan of action to begin transitioning clients as soon as contractually possible. A well-planned transition day focuses on leveraging communication, accessibility, and convenience (for your clients). You should have a well thought out and consistent message that is concise, transparent, and easy for the clients to understand.
Make a Post-Transition Plan – Just like any other job, you should give yourself time to get acclimated post-transition. Creating a 30-60-90 strategy can help you adjust to changes of starting an RIA while maintaining focus on running a successful practice. Focus on what you’d like to accomplish in each of these timeframes and evaluate your performance at the end of each month. Develop some KPIs (key performance indicators) that you will want to monitor closely during this critical period. These are likely things such as expenses, client transitions, technology integrations, training, operational milestones, etc.
Still need help getting started? The team at Atlantis has more than a decade of experience in this space. We are committed to helping Advisors realize their potential as they transition their business to independence. Contact us today to see how we can help make you vision a reality.