That’s Not Growth—That’s Gravity: Why Confusing Market Returns with Real Business Growth Is Killing Your Firm’s Future

Let’s be blunt: too many advisory firms are fooling themselves.

They point to a 12% increase in AUM and pat themselves on the back. They celebrate hitting “record highs” in revenue without pausing to ask the most critical question of all:

Where did that growth actually come from?

Here’s the truth most firms don’t want to hear:
That’s not growth. That’s gravity.

You’re not growing; you’re floating. And eventually, gravity doesn’t lift you up; it pulls you down.

Mistaking Market Lift for Real Growth

Markets rise and fall. That’s the game. And yes, when portfolios expand from a 15% bull run, your AUM chart looks great—but let’s not confuse that with real business progress.

Real growth—the kind that builds enterprise value—comes from what you can control:

• Adding new ideal clients
• Increasing wallet share with existing clients
• Creating deeper, more meaningful engagement
• Expanding your firm’s capacity to serve

Market returns are a background force. They’re the wind in the sails. But if you remove the market tailwind and your numbers stall, you’re not running a growth business; you’re riding a market wave.

What the Best Firms Are Doing Instead

The firms that are truly growing are doing three things differently:

1. They Separate Signal from Noise
   They understand the distinction between market gains and operational progress. They generate reports that clearly distinguish net new assets from capital appreciation. They monitor actual client acquisition and retention, wallet share, and client lifetime value—not just an AUM blur.

2. They Build Well-Funded Growth Plans
   As Mark Tibergien said, “Growth is an investment, not a reward." These firms allocate real budgets to growth—marketing, business development training, client engagement tools, advisor capacity expansion—not wishful thinking, not leftovers, but strategic capital. On purpose.

3. They Hold the Mirror Up
   They pose challenging questions to themselves. Are we genuinely growing, or merely keeping busy? Are we deliberate about whom we serve and how we attract them? Are our advisors prepared to drive growth—or simply manage what already exists?

The Danger of Delusion

Here’s the risk of ignoring this: you build an enterprise that appears healthy on the surface but is hollow underneath. A rising market conceals mediocre practices. And when the tide rolls out, the illusion disappears.

Worse yet, firms that buy into the gravity myth fall behind. They neglect investing in key roles, technology, or marketing strategies because “everything looks fine.” Meanwhile, competitors are upgrading, rebranding, and building teams designed to win new business.

When markets stall—or worse, decline—these firms panic. They haven’t built up their growth capabilities. Their sales pipeline is empty. Their team lacks the experience for business development. Now they’re scrambling.

What To Do Right Now

If you’re serious about real growth, do this:

• Strip market gains from your reports. Analyze your numbers as if the market didn’t change. What’s remaining? That’s the reality.

• Develop a focused business development strategy. Designate roles. Allocate funding. Provide training. Monitor progress. Make adjustments. Don’t leave it to chance.

• Audit your marketing. If a stranger visits your website, do they immediately understand who you serve, how you help, and what sets you apart? If not, fix it.

• Define an ambitious growth target. Not one dependent on market increases, but one linked to new relationships, revenue streams, and referrals. Develop a plan to support it.

• Reframe sales. Selling isn’t sleazy; it’s how you help more people. If your team is allergic to it, they’re allergic to impact.

The Bottom Line

You are either building a growth engine, or you’re coasting on someone else’s. Organic growth is not an accident; it results from deliberate choices, consistent actions, and a mindset that doesn’t confuse momentum with mastery.

Growth doesn’t just happen. It’s earned.

So ask yourself: Are you growing—or just floating?

Coaching Questions for Teams

1. What would your real growth rate be this year if you removed the market tailwind from your AUM?
2. What specific investments in growth have you made in the past six months—and what’s missing?
3. Is your team equipped—and expected—to drive growth, or to maintain the status quo?

About ClientWise LLC

ClientWise is the premier business and executive coaching firm working exclusively with financial professionals. We specialize in helping clients optimize growth and maximize revenue by engaging as a knowledgeable partner in accomplishing specific and significant business results. Our full-service coaching program empowers financial advisors, wholesalers, managers and executives to enhance performance through customized, action-oriented solutions based on each client’s specific vision and situation.

Our certified coaches are members of the International Coach Federation (ICF). They adhere to ICF’s strict code of ethics and have the experience and insight to work with you on the unique challenges and opportunities you face each day.

Drawing from an in-depth knowledge of the financial industry, ClientWise’s mission is to professionally develop industry leaders and consistently raise the bar for industry service, commitment and integrity. Simply put, our singular focus is to help you get clear, get focused, and get results.