Most of our long-term clients have been in situations where our service became invaluable to them because of wisdom we were able to offer when something was going on in their lives. We don’t know when that occasion will occur, we just know that it inevitably will. Our model means that we need to be in frequent direct contact with our clients to anticipate when those things will happen. This makes the delivery of our services expensive—we have four people working directly with each client and call in specialists as needs arise. Again, this is not the “right” way of doing things, this is simply one way of doing them.
For us, with roughly 450 clients, we have to figure out where our next 45 clients are going to come from. That seems easily doable, regardless of how things shift. Every year, we may need to gradually grow that number, but not exponentially so.
The mergers and acquisitions occurring in our business are not a cause for alarm. They are a tacit acknowledgement that we are doing valuable work. While we may find ourselves competing with larger firms, they will spend dollars that we don’t have to promote the viability of planning.
The most important thing for any organization is to understand who you are before you jump to whom you want to be. You will be more successful having a business that reflects your values and operating principles than trying to construct something inauthentic in advance of what you see coming. Bill Gross used to talk about an investment alarm clock that can be as expensive to set too early as it is to set too late.
This does not mean to rest on your laurels. Regardless of the future you wish to create, you still need to participate in the technological revolution by getting faster on the things that artificial intelligence will turn into commodities. You have to still find staff who meet the demands of the business model that you feel is most appropriate for you. And you have to find clients who value the service that you provide, regardless of how you provide them.
It also means you don’t have to get too far ahead of yourself. There will be some early adopter firms that develop more quickly; there will be others that disappear. But most of us won’t fall into either of those categories.
Your future will be an extension of your past. Make sure it is also a reflection of what you value and is aligned with your values.
Ross Levin, CFP, is the founder and chief executive officer of Accredited Investors in Edina, Minn. He can be reached at [email protected].