In many aspects, running a successful financial planning practice is like running any other type of business. There are decisions to make and people to help, and in many cases, customer and client satisfaction is the number one dictator of your success. Having two advisors in a firm is much better than one for several distinct reasons.
Reason #1 – Multiple Perspectives
Running a successful financial practice takes a lot of know-how, and the fact is that two people can put their heads together and tackle everything from marketing to client lists to future mergers and acquisitions much more successfully than a solo operation. Being able to see things from multiple points of view puts things into perspective for many financial planning practices, and the same idea can be applied to individual clients, too. For example, if you are unsure whether a particular client should put his money with ABC, Inc. or XYZ, LLC, you have a source of advice.
Reason #2 – A Backup Plan
As a solo advisor, planning for a vacation or even a day off is tricky business. Maybe you can pack up and head to the beach for a week, but that won’t stop clients from calling you about a stock that continues to drop or the other emergencies they experience. When you have a second advisor in your firm, there is always someone to handle the issues that arise. It makes planning days off and family vacations simpler and easier – for both yourself and all of your dedicated clients.
Reason #3 – Combining the Best of Two Worlds
Different people have different outlooks on everything from time management to client acquisition. This can truly pay off in a financial planning firm, particularly when two advisors can learn from each other. For example, if you have a knack for marketing and obtaining new clientele, but your partner has the skills when it comes to organizing and drafting business correspondence, then the two of you combined are a true force. You can handle bringing in the new clients, and he or she can handle the organization of their information.
Are There Any Downfalls?
Of course, when you decide to merge or go into business with another financial advisor, there are a few things to keep in mind. You need to make sure that the two of you agree on many different aspects of the financial world. Otherwise, your conflicting views can have a negative impact on your business. After all, you do not want your partner to tell a client that the advice you provided was incorrect; this takes away from your credibility. Although you may do things differently, it is important that you share similar views to avoid this situation.
As you can see, in almost every scenario, having two heads in a financial planning practice is a good thing. However, before you merge with another advisor, make sure that you get along on a personal level and share the same views about financial planning.