Independence: More Than a Standalone Event

We all have “what ifs” — those dreams we’d pursue if our time was truly our own and we had more control over our career trajectory. As an advisor, you’ve built a career around helping clients pursue their “what ifs”. But what about yours?

There’s never been a better time to seize your “what if” moment. Thanks to the evolution of the independent channel, W2 and 1099 advisors alike can gain a more fulfilling work/life balance, greater control over their business, and dedicated support — not just in a one-time transition event, but throughout each stage of their business. Here’s how.

Phase 1: Build a Solid Foundation

The early growth phase is a crucial period for any advisor. It's the time when you lay the foundation for your practice, establish a client base, and build credibility that will sustain your business in the long run. These strategies can help you generate vital momentum.

Choose Your Business Structure

When deciding what type of business you want to create, ask yourself these questions to pinpoint what independence means to you.

• What are my strengths?
• Which activities do I enjoy most in my business? Least?
• What does growth mean to me?
• What level of autonomy am I seeking?
• Do I want to have all of my services packaged together and coordinated or build my own suite of options?

From there, you can better determine the independent business structure best suited to your needs and goals.

• Independent employee model: As a solo practitioner or team, you want to continue to operate as a branch employee, but with better economics and more control over your business.
• Supported independence model: You’re ready to start your own business but want turnkey support in managing and running it.
• Regional community: You want to own and run your business with access to a regional advisor community, coaching expertise, and dedicated support.
• Join a branch office or enterprise: You want to have your own business, but like the idea of tucking into an established branch for support and scale.
• Traditional: You’re comfortable being an independent business owner and functioning as a CEO.
• RIA: You want maximum control and autonomy over your business.

Network

Your success hinges on the trust and relationships you build. Focus on creating meaningful connections with other professionals, such as attorneys, accountants, and other financial experts through industry conferences, local business groups, and community events.

Ask for Referrals

Providing exceptional service to your initial clients can earn you their trust and recommendations, which can be a powerful tool for attracting new clients. It may feel a little uncomfortable at first, but you shouldn't be shy about asking for referrals. These stats¹ underscore why:

• People are 400% more likely to become a client when referred by a friend.
• 58% of wealthy investors found their financial advisor via referral.
• Lifetime value of a referred client is 16% higher than a non-referred client.

Establish Your Brand

Developing a strong brand and marketing strategy is essential for attracting new clients. Your plan should include:

• Website: Clearly communicate your expertise, services, and unique value proposition.
• SEO: Improve your website’s ranking in search engine results to attract organic traffic from prospective clients.
• Content marketing: Develop blog posts, articles, videos, webinars, and other materials to engage and educate your target audience on the financial topics that matter most to them.
• Social media: Use platforms like LinkedIn and Facebook to build your brand, share educational videos, and write educational articles that position you as a valued financial guide.

Phase 2: Growth Mode

By mid-career, your focus shifts from establishing a client base to scaling your practice. This involves exploring organic growth opportunities, considering mergers and acquisitions, and expanding your service offerings to become a one-stop solution for your clients. These tips can help you sustain growth and increase your profitability.

Focus on Your Ideal Client

As your business grows, you may find yourself spread too thin — especially if your book consists of clients with divergent needs, service expectations, and account sizes. Using a solution like LPL Partial Book Sales can help right-size and streamline your practice so you can spend more time with clients who fit your business model.

Diversify Revenue Streams

Consider broadening your service offerings to include things like:

• Estate planning
• Retirement planning for small-business owners
• Tax planning
• Debt management
• Values-based / Environmental, Social, Governance (ESG) financial planning
• Insurance solutions
• Guidance on employer benefits

Upgrade Your Technology

Strong technology can fuel business growth by saving you valuable time, increasing your efficiency, and enhancing your clients’ experience.

• Automate time-consuming tasks like client onboarding, document management, scheduling, and repetitive communications.
• Integrate key tools, such as CRM systems and financial planning software, to create a seamless workflow and increase accuracy.
• Leverage AI analysis to identify trends, optimize portfolio management, increase efficiency, and deepen client analytics.
• Personalize client experiences by tracking their preferences, goals, and interactions.
• Offer a secure client portal to provide 24/7 access to financial information, documents, and progress tracking.

Build Your Team

Hiring additional staff or outsourcing the business functions you’re ready to take off your plate can:

• Increase efficiency and streamline administrative tasks
• Provide specialized expertise to your clients
• Scale your business
• Free up time to spend on what matters most to you
• Optimize service delivery and response time

Phase 3: Legacy Building and Succession Planning

This is the capstone phase where you begin preparing for your next step. It could be retirement, or simply a change in your career path. Proper succession planning is critical to secure the future of your practice and maintain client trust. Use these strategies to help you preserve your legacy and take your next step with confidence.

Identify Successors

Consider mentoring junior associates, gradually delegating responsibilities and providing them with the necessary training and experience.

Explore the benefits of hiring a junior financial advisor

Communicate with Clients

Transparent, consistent, and proactive communication with clients about the succession plan is essential to maintaining their trust and confidence.

• Emphasize the continuity of service and qualifications of the new leader.
• Make time for in-person meetings and calls to help clients understand the transition process and feel confident in the future of their financial planning.
• Consider implementing client retention strategies, such as offering additional services or incentives, to encourage client loyalty during the transition.

Obtain a Business Valuation

Understanding the value of your practice, which can be influenced by your client base, revenue streams, and your team’s experience, is crucial for a successful sale. Engaging a merger and acquisition specialist can help identify potential buyers, negotiate the best terms, and ensure that the sale aligns with the your long-term goals.

Consult with Legal Counsel and Tax Professionals

Drafting and reviewing legal agreements, such as buy-sell agreements, is essential to protect the interests of all parties involved. Legal professionals can provide guidance to ensure that the necessary documents are comprehensive and sound. Additionally, consulting with financial planners and tax experts can help you create a strategy that maximizes the value of the sale while minimizing your tax liabilities.

Putting it All Together

Your journey as an advisor in the independent channel is an ongoing evolution. From the initial startup phase to the growth mode and finally to succession planning, each stage presents unique challenges and opportunities. By implementing the strategies highlighted in this article, you can work towards building a sustainable and thriving practice that not only addresses your clients’ needs but also aligns with your personal and professional “what ifs”.

To explore how LPL Financial can help you reach your goals, contact your business development representative.