Advisors are many things, but, as a group, technologically savvy is not one of them, so too many of us have a tech stack that operates like the greenhorn barista in the above scenario. To this day, some advisors use a physical Rolodex to find phone numbers or use scratch paper to adjust client accounts manually. Nevertheless, they get by, in many instances because they have a pool of wealthy older clients who neither ask about modern technology nor require much hands-on guidance.
But when it comes time for those advisors to sell their business, they are bound to encounter resistance from younger, would-be buyers who will likely be stunned by the lack of technology. For an exiting advisor, it may seem counterintuitive, if not foolish, to adopt software solutions that they have not used throughout their career. Making upgrades now, though, would create efficiencies that will attract more eager buyers later.
Stop doing unnecessary work that adds little tangible value to your practice. Abandon conventional wisdom and take the counterintuitive approach of shedding surplus investment vehicles and adding automated technology. It will simplify your workflows and enhance your succession planning.
Greg Luken is founder and CEO of Luken Investment Analytics, a turnkey quantitative research and third-party asset management firm.