Family-owned financial services practices can offer benefits other structures cannot. In the world of financial services, it’s the personal touch and long-term relationships that often make all the difference. Here at Integrated Advisor Network, we’ve strived to maintain a family feel since our launch in 2015. We find that promoting a culture of inclusion and success centered around family, joy and accountability, and delivering service before self, has served us and our family of advisors well.
Family-Owned Financial Services Make Sense
This type of financial services practices stand out by blending deep-rooted values with a commitment to client success. Several of our network advisors are indeed family-owned and operated financial services businesses. We’ll be highlighting them in the upcoming weeks on our blog, and pointing to specific benefits they’ve experienced as a family business.
One area where these practices can particularly excel is succession planning. Succession is a big topic in our industry, as well as developing next-generation talent. With the continuing wealth transfer among older clients — who are typically served by older advisors — the transition of a financial advisor’s practice to the next generation through family succession aligns with a problem our industry is trying to solve every day.
Five Benefits of a Family-Owned Firm
Generally, there are some key benefits of a family-owned financial services practice, especially in relation to succession planning.
- Continuity and Stability: Family practices often prioritize long-term stability and continuity, which are crucial in financial services. Clients benefit from knowing that the firm’s leadership and vision are maintained across generations, ensuring consistent service and a deep understanding of their financial history and goals.
- Trust and Personal Relationships: Clients of family-owned firms typically enjoy strong, trust-based relationships with their advisors. As the business transitions to the next generation, these relationships are preserved and nurtured. The familial bond within the firm extends to clients, offering them a sense of security and personal care that is difficult to replicate in larger, non-family-owned firms.
- Aligned Values and Vision: In family practices, values and vision are often passed down. This creates a cohesive and unified approach to client service and business operations. This alignment ensures that the firm’s ethos remains intact, providing clients with a consistent experience and a clear, value-driven approach to their financial planning and investment strategies.
- Long-Term Planning and Investment: Family-owned financial services firms are inherently focused on long-term success. This perspective encourages prudent, sustainable business practices and investment strategies. Clients benefit from advisors who are not only looking at the next quarter but at the next generation. They’re providing guidance that supports enduring financial health and prosperity.
- Seamless Succession Planning: Succession planning in family-owned practices is often more seamless and natural. The next generation is typically trained from an early age. They become familiar with the firm’s operations, client base, and core values. This preparation ensures a smoother transition when leadership changes hands, minimizing disruptions and maintaining client confidence.
Supporting Firms and Clients For Years to Come
Stay tuned as we plan this blog series. We’ll focus on family-owned firms, as well as succession planning and developing next generation talent. Our goal is to help you build both your clients’ legacy and your own.