Cheers to Independence! As We Celebrate America’s Birthday, We Share 4 Lessons to Support Your Road to Freedom
After leading successful careers as wealth management professionals and forming our own RIA, we’ve learned a thing or two about becoming independent – there is both an easy way and a hard way. With that in mind, we wanted to share a few of our hard-fought lessons with you – touching on everything from real estate to technology.
- When it comes to leasing, read the fine print.
Leasing a piece of commercial real estate is a whole different ball game than buying, selling, or renting a residential property. There are a variety of lease types and options for building out your office space and – you guessed it, many potential pitfalls.
Remember: All leases are not created equally. The terms you choose will have a significant impact on your bottom line. Select a reputable landlord and do your research to see what is right for you. For example, under a gross lease, the landlord is responsible for all repairs, taxes, and insurance associated with the property. Whereas with a triple net lease, you would be expected to pay those costs in addition to the monthly rent.
Nervous? Don’t be. We handle everything from identifying potential office space to scheduling tours to negotiating lease terms for our associated firms. We hire contractors to oversee the renovations. You ride shotgun through the entire process to provide direction on branding and design. We’ve customized dozens of offices across the country and each one has a unique look and feel.
- Technology is the force multiplier in wealth management.
Poor technology solutions quickly inhibit business growth and job satisfaction. However, expense is a real roadblock for small businesses looking to secure top-notch technology – think: laptops, desktops, software, copiers, phones, etc. Buying these tools is the easy part. Keeping everything running smoothly and efficiently requires next-level expertise.
Through our partnership with industry-leading, third-party technology vendors, we provide a flexible and customizable menu of options for new firms. We have a team of over 30 technology experts who offer remote and nationwide, on-site troubleshooting to assist with our integrated ‘tech stack.’
- Save time and outsource the management of your office infrastructure.
Once the office space is identified and remodeled, there is an entirely separate set of considerations required to get the business up and running. Coffee must be bought, shredding services will have to be arranged, and office supplies will need to be stocked (and restocked). These tasks are often overlooked because they have always been managed by others. Did we mention you need coffee?
While this all sounds simple enough, independent wealth management professionals can spend up to 30 to 40% of their day making the business run.
We take care of all the little things for our associated firms, so wealth managers can focus on what they do best and what they set out to do in the first place – help their clients.
- A paperless office streamlines many compliance procedures.
Compliance departments are beneficial to protecting the value of your firm. However, the reality is that few wealth management professionals have (or want) experience in this area.
At Kestra Private Wealth Services, we created a centralized compliance department to ensure all our teams have professional oversight and guidance on regulatory matters. Our onboarding process is even paperless, so we can ensure all your ducks are in a row in the event of an audit. This virtual experience incorporates e-signatures and integrated software to share documents for verification. When you inevitably do get audited, we will represent you in person with the regulators, allowing you to maintain your focus on your clients.
As you celebrate the Fourth of July, we hope you consider furthering your own American dream by taking the leap to independence. If you have any questions about what the transition away from the wirehouse looks like or how to prepare, we’d love to chat.
Learn more about Kestra Private Wealth Services.