A few years ago, I received a call out of the blue from the CEO of a $5 billion RIA. He needed help facilitating his firm’s strategic planning offsite and wanted to develop his next-generation leaders. As a second-generation owner, he and his partners had acquired the firm from its late founder and were deeply committed to sustaining their legacy. Their vision was clear: ensure the firm endured for generations to come.
We signed him up as a client and began preparing for the offsite. A week before, I joined a preliminary Zoom call with the COO to align on the agenda. Twenty minutes into the conversation, I hit a wall.
"One thing you need to know," the COO said firmly. "Business development is off-limits. We don’t discuss it. Ever."
I paused, unsure if I had heard correctly.
He continued, “Acquiring new clients through sales is not something we do. It’s not our culture. Every advisor here was hired with the understanding that business development would never be part of their job. We’ve always grown through referrals, and our performance speaks for itself.”
In other words, the very mention of the word “sales” was a non-starter.
Can you imagine? A multi-billion-dollar firm, in a fiercely competitive industry, refusing to even acknowledge the engine that fuels every enduring business—growth.
I couldn’t help but wonder: How does a firm sustain its legacy if it refuses to evolve?
This conversation didn’t end with that Zoom call. It was the start of a deeper dialogue—one about mindset, value creation, and the future. Because while “sales” may be a dirty word to some, the most successful firms understand that growth is not about selling—it’s about serving.
Rethinking new client acquisition
The RIA channel has treated sales as a taboo topic for too long. This has led many firms to historically resist proactive client acquisition efforts – fearing that even the slightest perception of selling might be seen to conflict with their fiduciary duty. It's a mindset that's outdated and detrimental to your long-term ability to build an enduring business.
Organic growth isn't a byproduct of market performance – it requires intentional strategy, investment, and execution. Yet many firms have no defined growth plan or business development strategy; instead, they rely on referrals and market appreciation to carry them forward. It's a passive approach that is unsustainable in this rapidly evolving and competitive industry. Instead, the firms that recognize business development as a fundamental fiduciary responsibility (not a compromise of values) will ultimately endure.
The ClientWise 10% rule: a benchmark for growth
One way to establish clear and actionable growth goals is by applying our ClientWise 10% rule, which suggests that you should:
Remember that this rule should act as a benchmark rather than a strict mandate – and you might want to adjust it according to your specific strategic growth plan (for instance, you may aim for 10% new asset growth but only 5% in new revenue due to fee structure changes). The important thing is to ensure that a structured, measurable plan is established – focusing on actively acquiring new clients instead of passively depending on market appreciation and internal referrals.
Growth = Impact: your fiduciary duty to expand
Acquiring new clients is essential for every successful advisory firm. Even the most established organizations risk stagnation without a consistent flow of new clients. However, growth involves not just forming new relationships—it's also about enhancing the value provided to existing clients.
Expanding wallet share by discovering new ways to provide assistance, such as helping with retirement rollovers, deferred compensation strategies, closely-held business sales, or tax, estate, or retirement income planning, is crucial. Yet, it's astounding how many RIAs struggle to track these future opportunities within their CRM systems. Even more concerning is that many firms fail to evaluate the risk level of their existing relationships – missing critical warning signs that clients (particularly next-generation inheritors) may not stay with the firm during wealth transitions.
The best advisory firms understand that growth is not about selling products but expanding impact. More clients mean more families benefiting from sound financial guidance, better tax strategies, and stronger wealth preservation. If you genuinely believe in your firm's ability to improve your clients' financial outcomes, then you've got an obligation to bring those benefits to as many people as possible.
Failing to grow means leaving countless individuals and families underserved, often at the mercy of institutions that may not act wholly in their best interests. Growth enables your business to ensure continuity and sustainability, invest in next-generation talent, strengthen multi-generational relationships, and generate the capital necessary to reinvest in the firm—elevating the value and quality of service provided to clients. In truth, it's a gross fiduciary disservice to clients when a firm stagnates, struggling to keep pace with changing needs and expectations.
Reframing business development
Business development isn't about pushing products – it's about helping more clients achieve better financial outcomes. You owe it to them to maximize your firm's impact. But you also need to carefully plan for the impending reality of the Great Wealth Transfer.
$84+ trillion will change hands over the next two decades
Yet only 45% of advisors have any relationship with their clients' adult children
There's no avoiding the harsh reality that firms that fail to engage the next generation will watch as assets walk out the door. You might believe that your clients' heirs will naturally stay with your firm, but research tells a different story. Retention will become increasingly challenging without a clear, well-thought-out plan.
Perhaps the most significant mindset shift you need to embrace is that business development is not selling—it's helping prospective clients. Proper business development is an act of service, guiding individuals toward better financial outcomes by educating them on the value of holistic financial planning, tax optimization, estate structuring, and more.
When framed appropriately, business development aligns with core fiduciary principles, ensuring that more families and businesses benefit from high-quality financial advice. Approaching business development with a mindset of helping rather than selling strengthens client relationships and contributes to your firm's long-term sustainability.
Redefine your value proposition beyond the table stakes of investment management. Focus on outcomes – how well you help clients structure their wealth, minimize taxes, transfer assets effectively, and achieve their broader financial goals. Remember, the next generation isn't looking for investment managers. They're seeking a financial guide—a trusted facilitator—who can make navigating the complexities of wealth management easy (facile, the root of "facilitate"), understand their unique needs, and deliver outcomes that go beyond market returns.
Growth doesn't occur by chance. It demands a highly organized and deliberate approach founded on a basis of:
The firms that will thrive in the future recognize that growth is not optional—it's a mandatory responsibility. Expanding impact, nurturing client relationships across generations, and establishing a sustainable business must be fundamental components of a successful fiduciary.
The question is not whether your firm should grow—it's how committed you are to making it happen.
Coaching Questions for Advisors:
Based on your firm's current AUM growth, profit margin, and retention rate, what's a typical client's lifetime value (CLV)? What specific actions can you take to enhance each of those inputs?
How can you better weave professional development plans into the fabric of your firm to foster organic growth? Additionally, how could that investment in your team shape the firm's future leadership and culture?
What immediate changes or improvements can you undertake to move closer to your goals of attracting new clients and assets?
How will your firm improve its capability to track and measure opportunities for serving clients more comprehensively in the future?
Consider:
A well-defined approach to tracking and measuring opportunities leads to stronger relationships, deeper engagement, and a firm that remains proactive in delivering value.
Remember, sustainable and intentional growth isn’t just about sales—it’s about expanding your impact, ensuring continuity, and fulfilling your fiduciary duty to serve more clients comprehensively. When you grow with positive intent, you create a stronger, more enduring firm, elevating the lives of those you serve and building a foundation that empowers future generations to thrive.