6 ways the entrepreneurial mindset differs from the employee mindset — and how it can shape your future.
The migration to independence has huge momentum and has prompted many advisors to look inward and ask themselves whether they have the entrepreneurial DNA and the mindset to make the leap to independence. In the end, there is no one size fits all answer to this question but here is some food for thought to help you determine whether independence is right for you.
6 key traits and values of individuals with an “entrepreneurial mindset”
- You are bottom line oriented. Even when functioning as an employee, you are conscious of running a lean and profitable business.
- You value the long term economic picture, including the increased take-home economics and future enterprise value of the business you are building, more than the short-term gain from a transition deal at another firm.
- You are never complacent and are always focused on achieving the next milestone for the business, constantly looking for ways to grow and improve.
- You have a clear path. You know who you want as clients, what your offering and approach are, and what makes you different – and better – than the competition.
- You value your own brand. Although you may work for a firm with a world-class name, you recognize that clients are tied to you and your team, and not to the firm that you work for.
- You want control over your business inclusive of branding, marketing, client service, investment approach and pricing.
6 key traits and values of individuals with an “employee mindset”
- You are more comfortable in a large, corporate atmosphere.
- You want to spend your time focused completely on client facing activities, and feel that the administration and strategic planning aspects of business ownership would diminish that.
- You do not like managing people and navigating human resource issues.
- You like having at-your-fingertips access to specialists and resources and believe they are critical to your success.
- You are more comfortable with a “one-stop shop” approach and your clients are accustomed to that style as well.
- You place a high value on a big brand name, as do your clients.
The good news is that if you determine that you do not have the true entrepreneurial DNA to go it alone, but still want the benefits that come from greater independence, there are middle-ground solutions. Whether it is joining an already established high-end independent wealth management boutique where you would leverage a fully built out infrastructure, scale and open source platform, or simply joining forces with an independent advisor to share space and resources, it is possible to avoid much of the heavy lifting involved in running a business. Quasi-independent models are also a possibility, offering an open architecture platform and the flexibility to customize the business as an employee partner, with full benefits and an established infrastructure.
Understanding just how entrepreneurial your mindset is will help clarify the options that best align with your values and style of working and will guide you to solutions that deliver the greatest potential for success.