Starting and growing a business takes a leap of faith. It is often said that MBAs never start a new business because, upon close analysis, new businesses make no sense.

So clearly entrepreneurs are special types. They create something out of nothing but an idea, a spreadsheet and perhaps some capital. They believe that opportunity will turn into success and risks will turn into fun memories. They aren’t afraid to make that leap. In a way, to truly understand entrepreneurs, one has to become one—at least for a day.

Together, Fidelity and the Ensemble Practice attempted to do just that in a business simulation that asked 80 relationship managers at Fidelity to walk in the shoes of an entrepreneur and run a fictional business for a year and a half. This simulation may tell us something about the lessons that the next generation of leaders inside RIAs will need to learn in order to truly become entrepreneurs.

The independent RIA industry was created by entrepreneurs—people who took a leap of faith to create a business out of their skills and passion. If all of us who consult with and service RIAs are to truly understand them, we have to understand their experience. What is it like to chart a vision and recruit people to that vision? How does one make difficult decisions about compensation? How do partners communicate with one another while keeping an eye on the bank account, trying to perfect client service, serving as leaders and examples, connecting those cables under the desk and worrying about all of the other things business owners deal with daily?

As part of the project, Ensemble and Fidelity created 10 true-to-life RIA businesses and asked Fidelity relationship managers to oversee them. Each RIA had a history, an income statement with profits and expenses, clients and assets, a website, a payroll, a list of looming issues and a few attractive opportunities. Each manager was assigned a character role. Some were CEOs and others COOs. Some were partners or partners-to-be. Some were founders and some were successors. All were asked to be leaders.

Our simulation was similar to a large-scale sociology study wherein academics observe and study group behavior. We had a chance to see what experienced professionals would do if they were given the opportunity to get behind the wheel of a business and drive. This glimpse gave us many rich insights into what the next generation of leaders in the RIA industry will do when they take over. Members of this next generation closely resemble our friends and colleagues in the Fidelity relationship management ranks—skilled, passionate and experienced professionals who have not yet run a business. Here is what we learned.

There Is An Entrepreneur In Everyone
Running a business is exciting, and this excitement can be addictive. It is like driving a sports car: It’s a little scary getting behind the wheel, but once you get going, you don’t want to stop. In the case of our simulation, what was meant to be a “training game” quickly turned into a very realistic experience. Participants in our group were spending a lot of time brainstorming ideas, looking for better ways to accomplish their goals and researching possibilities. This was time they spent above and beyond their day jobs, time carved away from family and hobbies and put to work toward something they became very passionate about. That’s how a business starts.

It is a little counterintuitive at first to be a business owner. When you grow your career inside an established organization, you must often ask, “Who is responsible for this?” When you become an entrepreneur, you realize that the answer to this question is always the same: You are responsible. This is a lesson that the next generation of leaders inside RIAs are learning.

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