Optimal Client Household Count for RIAs
Finding the right number of clients is essential for a profitable business, without overextending a financial advisor's capacity.
Newer registered investment advisory firms must balance this amid the pressure of building a new business that relies on strong customer relationships.
- Client niche
- Menu of services
- Fees and assets per household
- Availability of support staff and internal or external resources
Experienced advisors and other experts point out that the right client headcount varies widely across firms.
Author's summary: RIAs must balance client count and capacity.