1. ESTABLISHED CLIENT BASE
One of the signs that a financial advisor is ready to leave their current firm and become independent is having an established and loyal client base. If the advisor has built strong relationships with clients over the years and has a consistent stream of business and referrals, it indicates they have the potential to carry their clients with them when transitioning to private practice.
2. EXTENSIVE INDUSTRY EXPERIENCE
Financial advisors who have a wealth of industry experience are more likely to consider independence. Years of working as an advisor provide them with the knowledge, skills, and confidence to handle the challenges that come with running their own practice. Moreover, their credibility and reputation within the financial community can attract clients to their new venture.
3. HIGH LEVEL OF AUTONOMY
When a financial advisor finds that their current firm's policies and restrictions limit their ability to serve clients in the best way possible, it may be a sign that they’re ready to go independent. Having the freedom to offer a broader range of financial products and services can be a strong motivator to make the switch.
4. ENTREPRENEURIAL DRIVE
Advisors who possess a strong entrepreneurial spirit and are passionate about building their own business are likely to go into private practice. They’re willing to take on the responsibilities of running a business, from marketing and compliance to managing a team and daily operations.
5. FINANCIAL STABILITY AND RESOURCES
Before making the leap to independence, financial advisors should ensure they have the financial stability and resources to support the move. Starting an independent practice requires an investment in areas like office space, technology and marketing. Advisors should assess their financial situation and ensure they can weather potential challenges while they transition to being a business owner.
It's important to note that the decision to become independent should not be taken lightly. Seeking advice from other independent financial advisors or industry experts can also provide valuable insights to assist in the decision-making process.
The advisors who join Cornerstone Wealth Management are independent but not alone. They benefit from the collective knowledge of more than 120 advisors who moved to private practice before them, as well as a dedicated transition team that handles the account transfer process from start to finish. Cornerstone provides support on operational tasks like compliance, marketing, and technology, so advisors have more time to spend with their clients and families.
If you’re ready to become independent, talk to Cornerstone’s recruiting team to learn more about how we can support your move and accelerate your growth.