Focus Point Solutions RIA Solutions

The Reality of Transitions: What to Expect and How to Prepare

Planning to transition to a more independent or ideal business model? If you’re like many advisors, you’ve probably done a significant amount of planning and research to prepare for a move. FocusPoint Solutions has significant experience and a strong history of leading advisors through their unique transitions to ultimately help them reach their goals.

Here are some key points to add to your arsenal of transition planning resources:

  1. The key to a successful transition is to design a solid plan, and then fully commit to it.
  2. If you don’t plan adequately up front or stick to your transition plan, your business and revenue stream may suffer.
  3. Some clients you least expected won’t—or will!—make the move with you.
  4. Plan for (a lot of) paperwork.
  5. Take a long view on technology and training.
  6. If forming your own RIA is your ultimate goal, but not feasible right now, there may be a temporary solution.

1)    Making a business change is a major undertaking. It’s critical to set the stage for a smooth, efficient experience as you transition from one business model to another. Each advisor preparing to make a move has a uniquely realistic—and necessary—timeline. While planning for the expected is essential, also anticipate that you’ll experience a few complications along the way. Missing or incorrect paperwork, clients who are unavailable at inopportune times, asset transfer issues, technology glitches, and any other number of random obstacles will inevitably crop up throughout a transition. Having an experienced partner by your side throughout a transition can help you stay focused and on course. FocusPoint Solutions helps to create and then successfully implement a transition plan within an advisor’s ideal timeframe.

2)    While you and your firm are unique, know that it can potentially take up to six months to get back to your current revenue stream. With adequate upfront planning prior to a transition, you can dramatically shrink this timeframe. In order to avoid unnecessary stress or difficulty caused by lower revenue, plan to create and put in place a financial cushion in anticipation of this (temporary) situation.

3)    We can’t predict how anyone will respond to change (it’s human nature). But as a trusted advisor to your clients, if you express excitement, passion, and confidence to them about making a business move, most will likely share your positive feelings. For any host of reasons (many totally beyond your control), some clients you expected would join you in your new venture will not. On the same note, a handful of clients may pleasantly surprise you by opting to move forward with you on your new journey. Also worth noting: Making a business transition is the right time to take a close look at your client base and decide whether to trim some clients from the list of those you serve.

4)    FocusPoint Solutions assists advisors with the creation of all new paperwork (yes, as much as you and your clients may have become accustomed to a relatively paperless environment, there will be a significant amount of physical documentation that requires actual client signatures). Advisors simply gather and provide the information and data necessary to populate required forms. FocusPoint Solutions then quarterbacks the entire paperwork process and preps all documents for each advisory firm.

5)    How much time and effort do you really want to put into researching, implementing, integrating, and training on new technology and systems—today and continuously? FocusPoint Solutions offers advisors an integrated, non-proprietary technology solution which includes CRM, PMS, document storage, and a client portal. Reporting on outside assets is also an option. Advisors and their teams are provided with systems and technology training as part of the onboarding process. Additionally, FocusPoint Solutions regularly backs up client-related data and makes it available to each advisor.

6)    For advisors who don’t have their own RIA, FocusPoint Solutions may be able to offer a bridge solution.

Here is FocusPoint Solutions’ brochure of services. Here are some real-life case studies involving advisors FocusPoint Solutions has helped to successfully transition to new business models, while supporting them with an experienced virtual team and integrated technology. Finally, here are the starting points for a few service model options FocusPoint Solutions offers to advisors.

If you’d like to schedule a 30-minute demo to learn more about FocusPoint Solutions’ virtual support team and technology offering, contact us at (866) 201-3034 or info@focuspointsolutions.com. Our goal is to customize a solution to address your unique needs.

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“As a traditional ensemble firm with over 20 years in the business, we could afford to bring on our own employees, but then we’d have to find the right people, make sure they were trained and had the right systems, supervise them, manage the human aspects that come with that type of working relationship, create an investment committee, and more. Frankly, I don’t want the headaches that come with more people and systems.”

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