Finding the best team of associates for your RIA firm takes work, but the benefits of a team versus a solo shop are substantial. That’s because RIA firms don’t have help from broker-dealers provided to them. Many advisors tend to have a special niche such as financial planners or investment oriented advisors that set them apart from the rest. You should look for an advisor whose niche complements yours. This will provide added value to your clients and they will appreciate it.
If you decide to start your own RIA firm, make sure you have a solid business plan. If you want to bring on a partner, make sure you discuss what specific job functions each with perform. A well thought out business plan will help prevent issues that could ultimately end your partnership. When there is a team set in place and everyone has a specific job function, your business will run smoother.
Having a team will also make it easier to transition clients to junior advisors when the senior financial advisors retire. Clients will be less likely to leave your firm if they still receive the same service they are accustomed to.