The same way cells divide and reproduce, a single financial advisory practice can turn into multiple practices (under the auspices of the same organization). Or an external practice can join another to form a collection of practices. A collaboration is formed when multiple practices share resources (such as rental space and technology) or knowledge (such as investment and wealth management approaches) but otherwise remain largely uncoordinated. Their services offerings are likely inconsistent.
This type of arrangement can involve few or many people. Size doesn’t matter so much as how the people are working within the organization.
Business
Now about the word “business.” Just about everybody offering financial advice says they work in a business, as the term can broadly include any activity engaged in for profit. When we put it next to the terms practice and collaboration, though, a more distinct definition emerges.
A financial advisory “business” has several traits:
1. People within a business share resources and knowledge.
2. They provide services in a coordinated, consistent fashion.
3. Each person in a business tends to have a clearly designated function that doesn’t overlap with those of others.
4. Businesses include one or more people primarily focused on management and operations.
5. The people within a business generally share the same values and operate under a clear plan, with a clear mission and vision.