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Hosted by Financial Advisor Coach, Ray Sclafani, "Building The Billion Dollar Business" is the ultimate podcast for financial advisors seeking to elevate their practice. Each episode features deep dives into actionable advice and exclusive interviews with top professionals in the financial services industry. Tune in to unlock your potential and build a successful, enduring financial advisory practice.
Ray Sclafani (00:00.366)
Welcome to Building the Billion Dollar Business, the podcast where we dive deep into the strategies, insights, and stories behind the world's most successful financial advisors and introduce content and actionable ideas to fuel your growth. Together, we'll unlock the methods, tactics, and mindset shifts that set the top 1 % apart from the rest. I'm Ray Sclafani, and I'll be your host.
Over the past couple of episodes, you've noticed we've been discussing this notion of the hidden risks and quiet challenges that can creep in as an advisory firm grows. And today I want to flip the script. Let's stop talking about what not to do and let's focus on what great firms are doing right now to build enduring future ready businesses. Because here's the truth. It's no longer enough to just grow. The firms that endure are the ones that evolve.
strategically and sustainably. So let's walk through the new playbook. It's not about being the biggest, it's about being the sharpest, the most aligned, the most trusted. So let's dive in. Let's start with what might be the single most overlooked strategy in the advisory business today. Clarity on your ideal client. Not the client of today, but the client of the future. The top firms are ruthless here. They're not chasing everybody with a liquidity event or a high net worth statement.
They're actually defining their ideal client based on complexity, fit, values, and how well that relationship aligns with their firm strength. Why? Because broad client rosters lead to confusion, and confusion leads to inconsistency, inefficiency, and margin erosion. When you narrow the focus, you actually increase your value, and you make it easier for your team to deliver on your promise every time.
Let's also talk about pricing for a moment and real value. Let's talk about money. Asset-based pricing is the industry standard, but does it really reflect the value that you deliver? Most firms today are offering far more than investment oversight. You're coordinating estate plans, you're guiding business transitions, you're navigating family dynamics. You may be even helping an executive negotiate their executive comp strategy. That's not a 1 % service, it's a strategic relationship.
Ray Sclafani (02:24.502)
More and more firms are moving to hybrid pricing models, blending base retainers, complexity tiers, and project fees under a master services agreement. Why? Because this type of pricing protects your margin and it anchors the value conversation while making your scope crystal clear. Here's a myth. You have to do everything in-house to be considered full service. Well, the smartest firms are abandoning that thinking. They're focusing on what they
do best and then partner strategically for everything else. That might mean working with specialized tax advisors or family business consultants or philanthropic strategists or leadership coaches. Whatever makes the client outcomes stronger and the internal workload smarter, that's the right approach. This approach not only enhances value, it improves internal capacity while reducing risk.
and then keeps you in the driver's seat of the relationship. The days of my book, my clients, my way are fading fast. Think like lone rangers to ensemble teams. Firms with staying power are adopting the ensemble model where client relationships are co-owned by teams and served collaboratively. This improves consistency, smooth succession, and it builds a culture where the client gets the best of everybody.
Not just one advisor with a jammed calendar. The ensemble doesn't happen by accident. You've got to train for it. You've got to reward it and you've got to build your communication cadence around it. Let's be real. There aren't enough qualified advisors in the market to poach your way to greatness. The firms that win are building academies, mentorship paths, and coaching cultures that develop talent from the inside.
They're playing the long game. They're developing people throughout their entire career journey. And they're identifying high character professionals early and giving them real training, not just technical knowledge, but client relationship and listening skills. That's what the future requires. Not just a team that can deliver a plan, but a team that can carry the conversation. Founder led firms eventually face a fork in the road. How to share ownership without
Ray Sclafani (04:50.072)
giving up what matters most. The best transitions start early. They involve clear buy-in paths. They reward contribution, not just tenure. And they build a next generation leadership bench that's ready, not just willing, to lead. Ownership is not just an equity strategy. It's a cultural one. I want to finish with tech for a moment. There's no future without digital enablement. But the key is integration.
If your systems don't talk to each other, or if your advisors are spending more time with software than clients, well, it's time to rethink your tech stack. The goal is to free up your team from admin so they can focus on what matters, which is delivering advice, building relationships and growing with intentionality. So there you have it. These are a few shifts that make up the modern advisory firm playbook. It's not about how fast you grow. It's about how well you align.
how clearly you deliver value and how intentionally you lead your teams. The firms that embrace this won't just be profitable. They'll be positioned for legacy, for continuity, and ultimately for impact. want to share three coaching questions that hopefully, I want to share three coaching questions that spark your next strategy session as a leadership team. First, where are we overextending our team or services and how can we refocus
on where we deliver the most value. what steps can we take this quarter to realign pricing with the complexity of our work? And number three, who on the team today has the potential to lead tomorrow and how are we actively developing them? If this episode helped clarify where your firm is heading or where it needs to go, I have a quick favor for you. If this episode helped clarify where your firm is heading or where it needs to go,
I have a quick favor to ask. Please share this episode with your leadership team. Use it to fuel your next strategic discussion and remember to subscribe so you never miss a chance to sharpen your edge. Well, thanks for tuning in and that's a wrap. Until next time, this is Ray Sclafani. Keep building, growing and striving for greatness. Together, we'll redefine what's possible in the world of wealth management. Be sure to check back for our latest episode and article.