Grow Your Firm Strategically With Working Capital

Although acquisitions are a great way to grow your firm, they are not the only way. Advisors who don’t want to buy another firm or book of business can use working capital to add new assets to their firm and prepare their firm for future growth and succession. For instance, they can bring on a new advisor to the firm, enhance marketing efforts to attract new clients, and build out the firm’s infrastructure and office space to prepare for future growth and stay relevant. Here’s a rundown of the benefits of each strategy.

Tucking-in an advisor to your firm allows you to add new assets and increase your firm’s capacity. This could include recruiting an advisor who already has a book of business or bringing on a junior advisor to take on additional clients and eventually to implement your succession plan. Oftentimes, advisors at wirehouses or other firms are ready to go independent or make a change, but they are hesitant to take on the responsibilities of owning a business. By bringing them into your firm, you could provide them with the business infrastructure and compliance they need while adding new assets to your firm. Bringing on a junior advisor is a great way to start implementing your succession plan. You will be able to train this junior advisor and introduce him or her to your clients so that when you are ready to retire, you will be able to leave your clients with an advisor that you know and trust.

Marketing and maintaining your brand is critical in order to keep your firm and your name relevant and to continue bringing in new clients. With additional capital, you could execute a marketing campaign that includes new advertisements, new signage, and/or redesigning your website. By keeping your firm relevant, you will attract new clients as well as new advisors to your firm.

When growing your firm, you want to make sure that you have the infrastructure and capacity that will allow your firm to absorb the growth and additional clients. There are several ways that you can make sure your firm is ready for growth. These include leasehold improvements, sprucing up your office space to make your firm attractive for prospective clients, and updating technology to make sure your systems and software are up-to-date to take on the additional client accounts. By keeping your office and technology up-to-date and secure, you will not only attract new clients but you will also enhance the retention of your existing clients. Strong technology also helps attract and retain junior advisors.

With capital available, financial advisors are given the opportunity to make their firm more enticing, which will attract both new talent and new clients.

If you are looking for working capital, consider Live Oak Bank. Our Investment Advisory Lending Team has extensive industry experience and expertise—we understand your business. Our loan officers are industry veterans who work specifically with financial advisors like you. Let us share our experience and data to help you refine your growth strategy and access the capital to make it a success. We have lent over $400 million to independent investment advisors for working capital, succession, acquisition and more. We look forward to being your financing partner and helping you capitalize your business and continue your growth and success.