Should you build an OSJ or is that the wrong question entirely?
Frank LaRosa and Stacey Frank break down a mistake they see advisors make over and over again.
It starts with a simple idea. If you want a high financial advisor multiple, you need a big enterprise. You need headcount. You need advisors underneath you. Frank explains why that math often doesn't work out the way people think and why owning an override is nowhere near the same as owning a business.
Frank walks through a real conversation with a client who built an OSJ, then realized he was managing people instead of doing the thing he was actually great at. That distinction between servicing clients and servicing financial advisors changes everything about how you should think about growth and enterprise value.
The conversation moves into the difference between a vertical business and a horizontal business, why some of the most successful practices in the country never touch another advisor's book and why chasing a bigger footprint can actually shrink your practice valuation instead of growing it.
Frank closes with a direct challenge. Stop building the business you think you're supposed to build and start building the one that actually plays to your unique ability.
Questions answered in this episode include:
What is your unique ability as a financial advisor?
Should you build an OSJ or focus on growing your own practice?
What's the difference between owning revenue and owning an override?
Why do advisors get a lower multiple when they don't own the underlying business?
What's the difference between a vertical business and a horizontal business?
Why are financial advisors more demanding to service than clients?
How do you decide what your business should look like as it grows?
Key Highlights:
00:00 Introduction: To Build an OSJ or Not to Build
01:10 What Is Your Unique Ability as an Advisor
03:23 Why an OSJ Has to Earn Your Trust Every Day
06:43 The Multiple Advisors Are Leaving on the Table
07:31 Vertical Business vs Horizontal Business
12:55 Don't Get Trapped by the Enterprise Fad
14:13 Do What You Love or Make Money Being Miserable
17:23 How to Reach Elite Consulting Partners
Advisor Talk is a podcast by Elite Consulting Partners focused on financial advisor transitions, recruiting and long-term growth strategy.
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