7 essential steps to create a million-dollar financial advisory firm

Advisors are experts at guiding clients toward their financial futures, yet they tend to get stuck when trying to achieve new levels of success for themselves.  

Let me illustrate this with my favorite riddle: Five frogs are sitting on a lily pad. One decides to jump off. How many frogs are left?

If you said four, not quite.  The answer is still five. Why? Because this isn’t a math question; it’s a life problem.  

We spend a lot of time thinking about growth – how to hit that next milestone, escape the daily grind or reach new heights. But thinking about change isn’t enough; it’s the action that counts.

The Latin root of decision and commitment is "to cut off," as in to cut off any other possibilities. The frog decided, but he didn't commit. 

Many advisors sit on their lily pads, waiting and wishing for things to be better while failing to leap necessary to make them happen. Not much changes for those advisors.

It’s not a failure of intention that’s the issue. It’s a failure of framework. Or rather, a lack of one.  

Too often, advisors are stuck in a never-ending game of whack-a-mole from the pizza parlor – constantly feeling short on time, struggling to keep up with service demands, feeling tethered to their practice, wishing running a practice was easier.  

Here’s a quick outline of the 7-step framework I use to build 7-figures practices that come with the income, time, and freedom to enjoy them:

1. Planning

A clear vision simplifies every decision. More often than not, advisors run their firms reactively, playing an instinctual game of whack-a-mole without a vision or strategy, making it impossible to best align their time, energy and capital (human and financial) with their goals. Defining success on your terms – whether it’s the growth you want to drive, the clients you want to serve or the lifestyle you want to live – is the first step.   

Ask yourself:

• What kind of income and lifestyle do I want to create?
• Who are the clients I do my best work with?
• What are the “three big moves” we must make to address the gaps? 

What research says:
A Harvard Business Review study found that businesses with a clear vision are 70% more likely to outperform competitors. 

2. Positioning

Trying to serve everyone can dilute your value and compromise client service and satisfaction. Positioning is about narrowing your focus, identifying a niche and building expertise. The narrower your focus, the more efficiently you can deliver specialized value, the faster you can grow and the deeper your profits can be. 

Ask yourself:

• Who is my ideal client and what unique challenges do they face?
• How can I best position my firm to stand out and attract these clients?

What research says:
Firms that focus on a niche grow 2-3x faster than firms that generalize their focus. 

3. Packaging

Many firms struggle to communicate the value they provide clearly. To grow your firm, you need a clear, concise, compelling message demonstrating your value to prospects and clients.

Ask yourself:

• Does my message effectively communicate the value I deliver?
• How can I package my services and advice relationship to reflect the deep value I provide?  

What research says:
A Nielsen study found that 59% of consumers prefer to purchase from brands they know. Branding can differentiate a business, creating up to a 40% increase in the likelihood of attracting new customers due to the consistent and recognizable presentation of the brand.

4. Promotion

Being a great advisor while hiding your light under a bushel is no longer enough.  Promotion ensures your message reaches the right people at the right time. Consistent marketing, optimized marketing funnels and a disciplined sales process can create a steady, double-digit pipeline and a consistent 70% closing rate.  

Ask yourself:

• How am I promoting my firm? 
• Is it generating a steady pipeline of qualified prospects?  
• What channels are best for my target clients; how can I build my marketing plan and funnels to optimize for my target clients? 

What research says:
Fidelity’s 2023 Benchmarking Study revealed a steep drop in growth, free-falling from 8.4% in 2021 to just 3.6% in 2022.

5. Process

To grow sustainably, you need systems that help maximize your capacity and deliver high levels of client service. Streamlined processes – from marketing to onboarding to client care – create efficiency, helping you maintain quality while scaling your firm.

Ask yourself:

• Are my processes standardized, optimized and consistent?
• Do we have the people, processes and platforms to deliver a hyper-efficient, hyper-specialized experience? 

What research says:
A Deloitte survey revealed that digitally mature firms are 23% more profitable. Implementing standardized processes saves time and creates space to deliver specialized services and a high-quality client experience.  

6. Platform

Your tech stack is the backbone of your practice. The right technology automates workflows, improves the client experience and scales your operations as you grow. Make sure you’re using tools that support your firm’s current needs and future goals.

Ask yourself:

• Am I using the best tools to leverage my time and support my firm’s growth?
• Have I invested enough to optimize my tech for greater efficiency and a better client experience?

What research says:
A McKinsey study found that companies with higher levels of digital maturity outperform their peers, generating up to 5 times higher revenue growth and up to 8 times higher profitability due to technology investments.

7. People

Your team is critical to your firm’s success. Whether hiring your first assistant or managing growing teams, the right people organized into the most effective structure for your goals and clients is key to profitably growing your business.

Ask yourself:

• What is the optimal organizational structure for my clients and business goals?  

• Does our culture, compensation plan, and career pathing attract and retain happy, high-performing team members?  

What the research says:
Companies that leverage their teams see 19% faster growth and 15% more profits. A Harvard Business Review study found improving employee experience can lead to a 45% increase in operating profits, underscoring the direct link between people and financial performance.  

If I could guarantee you that leaping came with a guarantee that all your practice goals would come true, you’d be lunging off your lily pads the second you stop reading this page. 

I can’t. 

What I can guarantee you is that the ‘more and better’ that calls you isn’t nagging you to sit back and wait on your lily pad.  

Let the leaping begin.

Stephanie is the CEO and Consulting Leader of Limitless Advisor Coaching.  Join #MondayMojo blog for quick insights to elevate your work, wealth & well-being at LimitlessFA.life. Join her Nov. 14 webinar to learn the framework that helped Michael Kitces 10x his growth and that you can use to build a $1M practice you love or scale your 7+ figure without sacrificing your lifestyle.