As advisory firms look to overcome challenges as they grow, three main factors largely determine how successful their businesses can become, according to Aneri Jambusaria, managing director of LPL Financial's Services Group.
The group's 800 staff members — now working with over 3,200 of LPL's affiliated financial advisors and institutions — is introducing new programs that zoom in on these factors so advisors can both improve and grow their businesses, Jambusaria says.
Jambusaria joined LPL over three years ago, after working at Fidelity Investments for about eight years. She also serves as a judge for ThinkAdvisor's LUMINARIES industry awards program.
The executive recently discussed what advisors should be doing today to position their practices for tomorrow via email.
THINKADVISOR: What is LPL research telling you, and how does it influence what LPL does for advisors?
ANERI JAMBUSARIA: In our latest advisor research about top-performing practices, we found three primary drivers of extraordinary businesses: growth, efficiency and resiliency. As an industry, we talk a lot about growth and an advisor's ability to capitalize on the increasing demand for independent advice.
With the advisor-centered wealth management space expected to grow from $27 trillion [in assets] to $35 trillion over this decade, that secular trend is showing no signs of slowing.
We see those advisors with strong marketing capabilities who are investing in building [their] client service capacity are best positioned to attract and retain more than their share.
Efficiency and resiliency don't get as much airtime as growth, but we see them as being equally important to driving success. From an efficiency perspective, it's thinking about how an advisor wants to spend their time and how the people in the office spend their time.
Where can they get more leverage and drive scale? That's where some of our services, like Administrative Solutions and Paraplanning Services, can help free up time to spend on high-value work.
Resiliency is also top of mind, especially in the current market environment. Advisors want to ensure their business is set up for all kinds of market conditions.
This is where the comprehensive advice conversation comes in. We found that successful advisors have diverse revenue streams, like charging for financial planning to weather the ups and downs.
In addition, resilient advisor businesses are planning ahead and have a long-term succession plan in place. This allows them to be intentional about their team and growth plans, and ensure they are protected in case of an unforeseen event.
What do advisors most need to be doing for their investor clients, and how is LPL helping them?
Many firms focus on providing financial advisors with ideas and insights to drive their success, leaving it up to the advisor to manage the execution. We found that while insights can be an incredible catalyst, you also need an accelerant to execute on those insights and drive impact.
