This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Let Go And Prosper: Avoiding Three Common Pitfalls In The Path To Breakout Growth

The Colony Group, one of the country’s largest RIA firms at $2.8 billion under management, tripled its assets and doubled accounts during the past seven years in no small part because the firm’s ”Path to Partnership” program recruits graduates as associate advisors and helps them progress through five clearly defined levels of increasing responsibility. Today roughly a third of Colony’s 60 employees are partners, compared with 11 percent for other firms of similar size. 2

“We get great people and we retain them because they have a clear, long-term career path,” said Michael Nathanson, Chief Executive, President and Chairman of Colony Group.

SignatureFD of Atlanta similarly created a three-step advisor progression. The firm says it has grown around 20 percent a year over the past five years to more than $2 billion in assets, a record of success that was fueled by the way it develops associates.

“It’s a big leap of faith, but the next generation is really stepping up. There are many examples of where they come in and do just as good a job as we would,” SignatureFD co-founder and CEO Jeff Peller says.

Let Go

Adding an operations manager or chief operating officer isn’t overhead: dedicated managers hold the fort so that the senior advisor can focus on strategy and attracting more assets. Consider that half of U.S. RIA firms generating $1.5 million in annual revenue have one or more dedicated managers, but among firms generating at least $3.5 million, 90 percent have professional management. 2

The challenge for principals is moving over and letting their new manager take the wheel. It is not always a comfortable transition for RIA principals, many of whom are entrepreneurs who wanted to be the boss and spent years building their own business. As a result many firms postpone hiring dedicated management until they get “bigger,” but these firms may wait too long and see growth stall as bottlenecks form around the owner.

3 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.75 -1.10%
FB $117.53 0.69%
GOOG $693.00 0.29%
TSLA $240.76 -2.81%
YHOO $36.61 0.06%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs