4 Time-Wasting Mistakes That Limit Your Firm's Growth

Not only does using multiple software solutions increase complexity but it also increases costs associated with onboarding new clients and servicing existing ones. Each piece of technology has its own cost structure, which means additional fees may need to be factored in when budgeting for a practice's operations.

Lastly, a glut of technology introduces more room for human error due to inconsistencies between systems or the lack of integration between them. This, in turn, can create more headaches than necessary when trying to troubleshoot any issues that arise.

Having too much technology can have a negative effect on a practice's ability to grow organically— it restricts scalability and efficiency while increasing operational complexities that hinder long-term growth.

3. Ignoring Model Portfolios

Leveraging model portfolios is one of the most effective ways to streamline operations and maximize efficiency within a financial advice practice. Model portfolios allow for a structured approach to investment management — advisors are able to offer clients sophisticated models while leveraging scaling gains that come with using models.

The use of model portfolios also helps reduce operational costs associated with manual data entry and tracking errors due to differences between systems. By consolidating all relevant information into a single source, advisors can feel more confident that their reports are accurate and up to date.

Additionally, this system allows for more efficient execution of trades, saving time and money in the long run. Model portfolios can also be used to quickly update client accounts in response to market conditions or changes in client needs — and advisors can quickly switch from one portfolio to another without having to manually enter new orders for each individual account they manage. This flexibility makes it easier for advisors to respond quickly when needed without sacrificing accuracy or incurring unnecessary costs.

Advisors should carefully consider the number of model portfolios they use; depending on the size and complexity of their practice, 10-30 may suffice. Too many model portfolios can lead to an overwhelming amount of administrative work, while too few could limit an advisor's ability to respond flexibly in changing markets or meet specific client needs.

4. Failing to Standardize Billing

When it comes to streamlining operations, failure to standardize billing can cause a significant bottleneck for RIAs. Many firms and advisors have different billing frequencies and methodologies across a single book of business — and managing all of these inconsistencies puts a strain on a practice's resources, preventing them from efficiently scaling.

To prevent this, it is essential that all team members are on the same page with their billing software.

A consistent approach will save time and frustration in the long run while supporting billing cycles that are prompt and accurate. With a comprehensive platform offering a robust suite of billing features, a firm is able to streamline the nuances that come with billing to meet the evolving needs of clients.

Conclusion

Streamlining operations is extremely important for RIAs to manage and grow their practice organically, regardless of market conditions or the economic environment. By remaining judicious and carefully selecting the right combination of technology tools, RIAs can free up valuable time to focus on elevating the client experience.

By consolidating multiple software solutions into one comprehensive platform with automated processes, RIAs can not only reduce costs associated with scalability but also offer the timely delivery of quality advice. Ultimately, these measures enable RIAs to better manage their practice while paving the way for sustainable growth.

Jack Hannah is chief operating officer of GeoWealth, a proprietary technology and TAMP built specifically for the needs of modern RIAs.

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