The above screenshot is Joshua Brown's response to why most advisors fail—below is my perspectives on a few points:
1) "People with millions of dollars don't hand it to 24 years old who are 18 months out of school"
Unfortunately, this is true. I launched my firm at 24 years old and exclusively worked with recent graduates out of this fear. With blind confidence, I thought I could make something happen. After several strategic decisions, I was right—but it was FAR from easy.
I didn't work with someone who had more than $10,000 to their name until the start of year three.
I also didn't have a network of wealthy friends & family so depending on your connections, these results could vary.
If you're from a small town, be prepared to hustle.
2) "There is a self-interested subscription-selling marketing machine inside the industry that is constantly encouraging young people to start their own firm or go out on their own. They’re more focused on entrepreneurship than learning how experienced planners work with families."
I think most advisors get the reference–but if you're new to the industry, XY Planning Network is the machine in question (in my opinion).
Full disclosure: I'm a member and have had a positive experience so far. The service hasn't been as great as they've grown, but I wouldn't be here without them.
Additionally, I strongly agree with the sentiment.
I entered the industry based more upon entrepreneurship and creative freedom, not hands-on financial planning (which is why I'm sending this newsletter and not one based on personal finance).
But if you want to be a successful financial planning firm, someone has to perform financial planning as a service—at a high level.
Become that person or hire out for it.
4) "Unwillingness to spend years in a team member role learning and developing. Unrealistic expectations of advancement without paying dues."
Personally, I wanted to learn the ropes elsewhere. But I couldn't get a job.
A few ghostings, a few mismatches, and a couple people who said I would be better off on my own.
I'm not sure that's a compliment, but they were all right. I wasn't meant to work for them.
And I had no desire to "advance" in a corporate setting. I tried it for a few years out of college and felt suffocated.
Even if the entrepreneurial route is harder, it doesn't mean it isn't the right choice.
6) "Entitled mentality, 'Why should I do this, what will it do for me?' Inability to think in terms of stages of a career."
I've shared a few personal stories over the past 8 months and can say that putting in reps, even though they may feel "wasted" at the time, is extremely worth it.
It's how I got my first brand deal and in a way, how I ended up creating the idea of Converting Attn: Club.
You have to try things, figure out what you're good at, what you enjoy doing and once you do, double down on it.
8) Lack of RIA firms with any recruiting or training experience.
I've never worked for another firm but if I had to guess, a majority of firms don't have the knowledge and skillset I've seen small RIAs implement with clients.
I would say that if you're reading this, you're probably in the top 1% of valuable financial advisors in the industry.
But don't be afraid to go out and invest in education, whether it be designations or hands-on training from other advisors (like Cody Garrett).
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