Forming your own RIA requires a hefty amount of legwork. We called in two leading experts — Dasarte Yarnway, Founder & Managing Director of Berknell Financial Group, and Brittney Castro, CFP, Founder & CEO of Financial Wise, Inc. — to help answer the most important questions when it comes to building your RIA from the ground up.
Q: Compliance can be scary. Where should advisors start if they’re thinking of establishing their own RIA?
A: For solo practitioners, read and research as much as possible. If you’re moving from a larger wirehouse into your own RIA, lean on your training and experiences with your internal compliance department. You can get a feel for what requires a disclosure statement or what’s okay to include in your marketing.
But there’s a lot of moving parts and pieces to compliance, so hire a professional if you can. Employing a consultant to help can keep you agile but remain in control. For example, a compliance manager can help get the disclosures you need in place while acting as a sounding board for you.
Q: So much of an advisor’s business comes from social media. How did you deal with compliance to get social media marketing approved?
A: There’s much more freedom on social media now than there was 10-15 years ago and there is also better general understanding around compliance and content. It’s always a good idea to consult and know what needs disclosures and what content doesn’t require it.
Q: There are so many options for advisors. How do you overcome indecision and avoid buyer’s remorse?
A: It’s overwhelming, to say the least. Having a vision is a great starting block, and then come up with a plan that you can chunk big goals down into achievable steps. For example, in year one, what are all the tasks you need to complete in order to get the business up and running. In year two, what strategic initiatives can you add to your plan? It’s always good to do an efficiency check, when and where in your business can you ask for help? What can you (and should you) take on yourself? This approach can help you stay motivated and on track to reach your goals.
Q: What’s been your best tool to get new clients?
A: There is no one answer to this question. All these channels work together very well and some will work better than others, depending on the type of client you are trying to attract. It’s a combination of word-of-mouth, social media, digital presence, and networking. By strategically approaching online and offline channels, you can target potential clients through both avenues.
Whichever tool (or tools) you find work best for your business, it’s crucial to establish your voice within a niche, serve your clients to the best of your ability, and network within that community.
Q: On this topic, how did you pick your niche and branding around it?
A: When it comes to finding the right niche for you, a good question to ask is, “what value are you bringing to your client?” When you specialize with one certain group of people — for example, tech and startup employees — and you know more about the equity compensation plans at Google, Facebook, etc. than anyone else, you’re able to provide very specific value to that segment.
As for branding, it’s important to think about the overall vision of your company and how that will be portrayed to your audience, in order to ultimately attract new clients that are a good fit.
