Growth is a multifaceted concept in the financial advisory space. For some firms, it is about increasing assets under management (AUM). For others, growth may mean expanding the team, attracting higher-net-worth clients or diversifying service offerings. Ultimately, growth is personal—it should align with your vision, values and long-term goals.
Why Defining Growth Matters
Growth is not a one-size-fits-all journey. What drives success for one firm may not resonate with another. Without a clear understanding of what growth means for your business, you risk pursuing goals that fail to serve your firm’s mission. Tailoring your growth strategy to your unique strengths, vision and priorities enables you to achieve sustainable success that builds enterprise level value.
In a previous post, Business Intelligence Dashboard: Knowing What Practice Metrics Matter, we explored the importance of defining key metrics and actively monitoring performance. Now, let’s dive into some actionable ways to define and measure growth—and why these approaches matter.
- Assets Under Management (AUM)
AUM is often the most straightforward measure of growth and success for financial advisory firms. It represents the total client assets your firm manages and indicates trust, market presence and operational capacity. Larger AUM often translates into higher revenue, enabling firms to invest in infrastructure, technology and talent. For many firms, growing AUM is also about optimizing efficiency—managing more assets without significantly increasing overhead. While it is a key performance metric, AUM should be evaluated alongside the quality of service and long-term client satisfaction.
Key Takeaway:
Sustainable AUM growth depends on maintaining strong relationships across your client base while delivering consistent results. While larger AUM might signal success, focusing solely on this metric risks neglecting smaller clients who could grow into high-net-worth individuals or overlooking the quality of your services.
- Expanding Your Team
A growing team reflects success and lays the groundwork for future scalability. Expanding your team allows your firm to handle an increasing client base, explore niche markets and offer specialized services that differentiate you from competitors. Adding advisors, administrative staff, or experts in areas like tax strategy or estate planning can expand your firm’s capabilities while ensuring you maintain the personalized attention your clients expect. It is about having the right people in place to meet the demands of today while planning for tomorrow.
Key Takeaway:
Expansion requires thoughtful planning. Hiring too quickly can strain resources, while waiting too long may lead to service inefficiencies. Building a collaborative and cohesive culture ensures seamless integration of new team members and aligns them with your firm’s values.
- Client Asset Size
Client asset size is a metric that goes beyond total AUM by focusing on the average assets held by individual clients. Increasing this figure often involves targeting high-net-worth (HNW) and ultra-high-net-worth (UHNW) clients who require sophisticated planning services, from advanced tax strategies to legacy planning. Serving these clients often yields higher revenue per client and allows your firm to offer more customized, in-depth solutions. At the same time, growth in client asset size can result from deepening relationships with existing clients through consistent results and value-added services.
Key Takeaway:
Shifting your focus to HNW or UHNW clients may require adjustments to your service model, including a more comprehensive approach to estate and tax planning. However, your existing clients with growth potential should not be overlooked, as they could evolve into significant contributors to your firm’s success.
- Diversifying Services
Diversifying services is about meeting the evolving needs of your clients and positioning your firm as a one-stop solution for comprehensive financial advice. Modern clients increasingly seek holistic guidance that covers all facets of their financial lives, including tax-efficient strategies, estate planning, retirement income planning and philanthropy. By broadening your service offerings, you can strengthen client loyalty, attract new client segments, and even weather economic downturns more effectively. Diversification is not just an operational change—it is a strategic decision to remain competitive and relevant in a dynamic industry.
Key Takeaway:
Diversification often requires investments in certifications, staff training and new technologies. It is crucial to ensure your team is well-equipped to communicate the value of these services and deliver them seamlessly.
- Geographic Expansion
Geographic expansion broadens your reach, enabling your firm to tap into new markets and access previously untapped client segments. By establishing additional offices, offering virtual services, or targeting regional niches, your firm can create new opportunities for growth. Expanding into new geographic areas also helps mitigate the risks of being overly reliant on a single market or client base. This strategy can be particularly effective when combined with targeted marketing efforts and technology to create a seamless client experience across locations.
Key Takeaway:
Geographic growth involves upfront investments in marketing, staffing and infrastructure. Navigating state-specific licensing, tax and compliance requirements is also essential. Building client trust in new markets takes time and effort but can be a rewarding growth strategy.
Final Thoughts
Growth, regardless of how you define it, requires focus and strategic planning. Outsourcing can be a powerful tool to streamline operations, enhance scalability and free up resources for higher-value activities. At the Wealth Advisor Alliance, we are here to help you navigate the complexities of growth. Whether you need support with compliance, administrative tasks or investment management, our solutions allow you to focus on building a business that aligns with your goals. Contact us to explore how we can support your journey to sustainable growth.
We help advisors establish and grow successful wealth management practices. To learn more about how we can help you amplify your life’s work, contact us at team@waalliance.com. You can follow us on LinkedIn.