As a wealth advisor, you take a long-term view of each client's portfolio. You write investment-policy statements, establish benchmarks for success and invest a great deal of time helping your clients achieve their most important goals. But how much time do you invest in yourself? Do you have benchmarks for the success of your own business? Do you set aside specific time to update or refine your business plan? Do you have the tools, resources and staff to turn that plan into a reality? Are you making measurable progress toward your vision for your business? Do you ever feel frustrated that your business seems stuck?

If you are a high-performing advisor or part of an elite advisory firm, you might consider yourself to be an entrepreneur—but very few advisors today truly are. The distinction is in how you invest your time. As an entrepreneur or business owner, your primary focus should be on strategy and defining your long-term vision for success, rather than being overly involved in daily operations. As the chief executive officer of your business, it's your job to make certain the team you've assembled is supporting your client service model and client acquisition strategy. If you aspire to be an entrepreneur, the question you must ask yourself is: "How much time do I need to invest working as the CEO of my business rather than working in the trenches?"

In your role as CEO, consider every possible resource for achieving your personal vision for the future. Whether you work for a wirehouse, at an independent broker-dealer or as a registered investment advisor, only you can determine your ceiling for personal success—but part of your strategy may involve working with a coach or a consultant. Research and consulting firm Cerulli Associates recently reported that advisory practices that employed a coach or consultant generated more in average annual revenue ($861,289) than those that didn't ($670

Work on Your Business, Not Just in Your Business

Many wealth advisors think it's enough to have strong money management skills. While it's important to continue refining those skills as your core competency, they're not enough to build a successful business. Author Michael Gerber calls this the entrepreneurial myth, or the "E-myth": the flawed assumption that because you have the technical skills to manage money, you'll automatically become a successful business manager for your own practice. To overcome the E-myth, it's important to distinguish between working in your business and working on your business.

Working in your business describes the tactical, daily activities required to keep the operation running. In contrast, working on your business describes the strategic, long-term activities required to make the enterprise a success. If you're spending all of your time working in your business, you may be missing the big picture. To position yourself for continued success, look for ways to spend more time working on your business.

Working in your business would include tasks such as:

• client meetings and reviews
• networking events;
• answering emails;
• setting allocation plans for clients;
• client service requests;
• human resource issues; and
• compliance activities.

Conversely, working on your business would include the following:

• defining the culture of your firm;
• establishing a clear vision for your business;
• developing the team that you need to succeed;
• building a full-service wealth advisory practice;
• identifying your target markets;
• articulating your relevant value;
• implementing your acquisition strategy; and
• creating segmented client service models.

The Advisor of the Future

There are powerful forces changing the industry—and changing the way that advisors approach their careers: increasingly sophisticated client demands; new intermediaries; and intense competition for skilled money managers and experienced administrative and support staff. As a result, there will be a gap between those advisors who see their work as a job and those who see it as a business. To become a true business manager or owner, it's important to organize your team for success, create more capacity for serving the types of clients you're most interested in and recognize the importance of establishing a solid business plan.

A big part of your success will rely on clearly defining the ethos of your firm. "It's important to foster a culture that supports your strategy," says Mark Tibergien, CEO of Pershing Advisor Solutions. He notes that the simplest definition of culture is how your team members and employees perform when no one is watching. Each team member must understand and embrace your values and strategic goals in order for your firm to succeed. While culture is often easy to overlook, it will play a critical role in successful advisory practices of the future.