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Easing Into Independence

by Victoria Bowen

When you see a reference to financial advisors going independent, the words "leap" and "jump" are often used along with an image of someone soaring over a mountain or bounding into a body of water.


In my 20-plus years working with advisors transitioning to independence, I have found this is not quite the case. In reality, it's more of a gradual process that usually takes months or even years.


This thought always comes to mind when watching seasoned beachgoers enter the cold New England waters. They tend to ease in—first, ankle-deep, and then up to their knees or waists before finally immersing their whole bodies.


This sort of "easing in," along with a well-thought-out approach, works best for advisors considering going independent since it's such a big decision with various factors to consider and many moving pieces. I've put together some thoughts on items to consider before deciding to catch the wave of independence.


See what's below the surface.

Before you even contemplate going independent, take some time for deep self-reflection, both professionally and personally. You've likely been so busy building a career that you haven't taken this holistic view in a while (or ever) of where you're at now and where you want to go next.


So, take a deep breath and look beneath the surface of your work and life frustrations to see what's lurking there. During this exercise, you might identify some significant professional and personal changes that you must make to achieve fulfillment and purpose in business and life. Gaining greater self-awareness will ensure alignment between your values and goals.


Working with a good business coach can help with this process of self-reflection and discovery. A coach can help you gain clarity, provide accountability, and offer actionable next steps.


Keep an eye on the horizon.

You're likely so busy with your day-to-day work that you haven't spent enough time thinking through your longer-term strategy and goals. 


This is why taking that step back and developing a long-term strategic vision and written business plan is essential. Monumental shifts are happening in the wealth management industry, and what helped you get to this point in your career might not be what will get you to where you ultimately want to be in five, ten, or fifteen years. Understanding what you want over the long term is critical.


Crafting a strategic plan that aligns with your vision, values, and goals will help refine the conceptual vision to a clear, action-oriented, and structured framework of next steps, core tools, resources, and the support you'll need. You'll also better understand what you might need to let go of or leave behind.


Test the waters.

After completing the previous self-reflection exercises and envisioning your long-term strategy and business plan, you might realize that your current firm isn't aligned with your current goals or equipped to support them.


It may be time to explore other options, like going independent. Perhaps you've considered independence in the past. If so, be aware that a lot has changed within the space. There are now many more options than you would have had even five years ago. Just make sure you spend appropriate time exploring your vision and goals first. This crucial step will help you avoid getting lost in a sea of choices. It will also help you enter the process with clarity and confidence. You can test the waters by gathering information and having exploratory conversations. Being well-prepared makes it easier to identify and seize the opportunities that independence presents.


A word of caution: The independent channel has become increasingly popular. It's hard to go a week without seeing a headline or hearing about a colleague's experience. Being outside looking in could trigger an intense fear of missing out (FOMO).


It might be tempting to think that all you need to do is jump in to experience similar results. But doing so without serious thought and preparation would be as foolhardy as jumping into the ocean without paying attention to rip currents. Anyone who's ever gotten caught in a rip can attest to how quickly it will send you out to sea, far away from your desired destination.


You'll want to have a comprehensive understanding of the various models and choices available. This means educating yourself thoroughly and accessing objective and accurate information. This may include speaking with other advisors about their experiences, which can be helpful, but remember that everyone's path is unique. An ideal choice for someone else might not be the best choice for you.


Never swim alone.

Although much information is readily available, it's helpful to have an experienced and trusted source who can curate information, answer complex questions, and serve as a sounding board during the process.


Working with an objective recruiter/consultant can give you a confidential, tailored understanding of how to prepare effectively. They can help you understand the landscape and ask the right questions. Plus, they will take the time to learn about your business and your unique vision and challenges, connect you to resources, and provide introductions and guidance when and if you're ready to dive deeper into the due diligence process.


Get in your reps and improve your strokes.

Although you may be limited in what you can do in your current situation, use this time to improve your "swim strokes" by working on foundational business elements. You can begin working on several critical tasks while exploring and refining your vision. 

  • Deepening client relationships is paramount. Understanding and meeting client needs will ensure loyalty and trust if you transition to the independent space.

  • Developing core values and branding ideas are equally important, as both will form the essence of your independent practice's identity.

  • Defining your ideal client profile helps create a focused strategy for growth and service delivery.

These building blocks can serve as the blueprint for your future independent business, setting a solid foundation for a successful transition and beyond if or when the time comes.


Pay attention to your surroundings and be alert to danger.

Most shark attacks happen in shallow waters. Same with jellyfish stings. And rogue waves—as their names suggest—can happen suddenly, coming out of nowhere. (I once lost my sunglasses to a rogue wave!)


Always be prepared for the unexpected, even if you feel confident or think you're in a safe area. Circumstances can change quickly. HR issues, compliance challenges, and due diligence pitfalls are not always obvious, much like the dangers lurking in shallow waters.


Some things to keep in mind:

  • Confidentiality is crucial. Remember, loose lips sink ships. Even when casually exploring due diligence, be mindful of what you share. Exercise caution in all conversations, even if you're not fully engaged in due diligence. Whether working with a coach, consultant, or recruiter, ensure they are trusted sources who prioritize confidentiality.

  • Preparation is vital and will help you stay afloat should the unexpected happen. This is especially critical in the unfortunate event of a sudden termination (which has become all too common these days). Understanding your options and having done the groundwork with a consultant or coach can be invaluable. They can serve as a lifeline, enabling you to act quickly if necessary.

  • You must be an active participant in your own rescue. It's essential to have an emergency plan equipped with crucial business information, key contacts (like your trusted consultant), and other vital details. If you're well-prepared, it will be much easier for people to help you. This prep work serves as your life raft for navigating any unexpected challenges that come your way.


Remember, you are ultimately in charge of this decision. Be proactive, be prepared, and take an active role in your own long-term success.

 

Ready to dip your toe in the water? Get in touch. My mission is to increase awareness of the various paths to independence and to help advisors assess their unique situations, motivations, and goals to make an informed choice.

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