This is the 13th installment in a Financial Planning series by Chief Correspondent Tobias Salinger on how to build a successful RIA. See the previous stories here, or find them by following Salinger on LinkedIn.
Registered investment advisory firms that hire new staff members can harness much greater productivity, but the first employee in the door after a founder represents a costly investment.
For financial advisors who have recently launched RIAs or another solo advisory practice, that raises the stakes for picking the right person at the correct time — an essential step for growth-minded firms seeking to gain value as a business and boost their client services. Like many practice management and professional development quandaries facing RIA founders, the pivotal question leads to no single answer that fits every company.
Rather, the solution lies in every single RIA’s approach to issues such as whether to outsource tasks with vendors like brokerages, aggregators, custodians or financial technology firms, the number of clients that an advisor can serve before they have topped their capacity and the extent that automation or artificial intelligence could obviate the need for more employees.
To read the full article, please visit: https://www.financial-planning.com/news/when-should-a-new-ria-hire-more-staff
Disclaimer
This article was first published by Tobias Salinger
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