How To Know If It’s Time To Leave your Company

The benefits of getting started with another company’s resources are undeniable, but at some point you may realize that you would be better off being the master of your own fate by controlling and owning these 2 critical assets:

1. The Client Experience — the systems & processes you’re creating to consistently exceed your client’s expectations
2. Your Client Community — your ability to freely move your clients to any other contractual arrangement which you and your client agree is in their best interest

But leaving your company is a scary decision… so, how do you go about deciding whether you’re ready to completely own your own operation?

Run a Fire Drill

No, no, do not pull the fire alarm (as fun that may sound)… DO NOT alert any current relationships that you’re thinking about this, you’re just drafting a theoretical game plan on paper.

This (silent) fire drill is like a practice run — to create a written, step-by-step plan for changing every current company, partner, and institution you currently work with.

The strategy here is to first identify the most complicated issues, then break them down into smaller & smaller bite-sized pieces until you have figured out whether “going completely independent” is a good option for you or not.

If you offer “Investment Advice” start with that service, since it is typically the most highly regulated and most complicated piece.

If you don’t offer investment advice, use the investment advice example (below) as a model for running a fire drill for the other services you do offer (even if you’re a professional in another area of the financial services industry, such as tax accounting, estate planning, or insurance).

The American “Investment Advice” Example

Here’s our shortcut for determining whether or not you’re ready to start and run your own Registered Investment Advisor (RIA) in the USA.

Set up 3 separate phone appointments with institutions able & willing to serve as custodians of your client’s investment assets and who provide trading services. There are others in the US, but start with these:

• Charles Schwab Institutional
• Fidelity Institutional
• TD Ameritrade Institutional

These institutions are actively looking for new business, so while they’re not completely “conflict-free,” they are set up to help any Financial Advisor to assess whether or not they’re ready for this step.

PRO TIP: record these calls so you can focus on the call rather than being distracted by making detailed notes. Get the recording transcribed or make your notes later.

On the phone, ask these questions (and any others that occur to you)

“I’m thinking about striking out on my own, can you help me decide if I’m ready to go completely independent and start my own RIA?”

“Please walk me through the entire process?”

“In your opinion, how will I know if I’m ready for this step or not?”

“Please email me any resources your firm has for advisors considering this, including checklists, processes, and contact information for any other resources I’ll need if I decide to move forward”

They won’t help you start your business or provide you any legal advice, but…

They’re highly motivated to help you organize and execute a smooth transition if you’re a good fit for starting an RIA.  You will learn a lot from these calls, and this exercise.

Plus they have established referral relationships with most of the outside professional services you’ll need if you decide to move forward.

Lather, Rinse, Repeat

Establish a similar plan for changing the relationships in each of the areas of financial service you currently provide.

Also plan to “own your 2 critical assets” in any additional areas of personal finance you’re considering providing, such as: Tax Planning, Financial Planning, Estate Planning, or Insurance Planning.

Take them one-by-one, and create a hypothetical plan spelling-out specifically what it will take in each financial service area you’re considering.

Once you’ve completed all the hypothetical fire drills you’ll have a much clearer sense of whether you’re ready to strike out on your own right now or not.

And even if you’re not ready now, you’ll have a roadmap for getting there.