Break Away From The Pack

Addressing concerns when leaving a financial firm

On Behalf of | Dec 16, 2023 | Business And Commercial Litigation |

When financial advisors decide to leave a major firm and start their own, they’re going to have a number of concerns. If you’re in this position, you may know that it’s the right move or the direction you want to take your career. But you should also carefully consider the steps you can take to address these concerns.

In many ways, you may be worried about similar things to other business owners who are leaving a stable situation to set out on their own. Below are a few examples of potential issues to keep in mind while working through this process.

Is it financially viable?

First and foremost, the financial side of the picture has to be considered. What is this going to mean for the stability of your income moving forward? What is it going to cost to take all of the necessary legal steps to establish your own firm? It’s good to make a budget and to compile these costs so you can develop a plan for both the first year and long-term success.

Are there enough clients?

One of the main reasons that advisors will leave a major firm is because they believe they can find plenty of clients on their own. This can be more lucrative. But it’s important to begin building that network and identifying potential clients – or ways to acquire more – to ensure that the new firm has immediate work.

Do they need industry support?

Speaking of building a network, it’s also important to consider other industry professionals who may help with certain steps or at different points in the process. Some financial advisors will even start firms or partnerships with their peers, while others want to start the firm entirely on their own. Either option can be correct, just depending on the unique circumstances each person is facing.

If you’re considering starting your own firm, it can be a very exciting time in your life. As you can see, though, it’s also quite important to consider the necessary legal steps to take moving forward.