Are you one of the many financial advisors thinking about going independent? If so, make sure you have a solid plan. The transition process can be extremely smooth for your clients who follow if you have developed a business plan. This transition process typically takes up to a quarter as well. Lack of preparation could halt your new business before it takes off.
Advisors need set goals for their new business and consult with financial professionals and legal experts for advice and to assure there are no restraints from leaving their current firms. Many times there are signing bonuses or outstanding loans that need to be resolved before advisors can venture out on their own.
Financial advisors also must know the policy their current firm has on taking their clients with them. The last thing you want is to get sued or have a temporary restraining order placed on you just when you are starting your new business. This is where legal advice is important. Attorneys can review your contract or the rules before you move to ensure there will be no issue.
The good news is, once you have a solid business plan and worked through all possible issues, the majority of your clients should follow if you go independent. Clients tend to follow their advisors going independent because they hire the advisor, not just the firm.