The current environment, in which most of us are working from home and many firms are still slow to reopen, has a lot of advisors considering the classic breakaway scenario and going independent. After all, the shift from working in an office to working remotely has many advisors feeling like they’re only one step away from being independent – and that’s the official title.
But with so many considering going independent, it’s time to carefully look at the other side of the story. There can be a lot of hardships associated with going independent. And for some, the cons of being independent far outweigh the pros. The truth of the matter is, going independent isn’t for everyone.
Here are 3 key reasons why going independent may not be for you:
- Administration: One of the biggest adjustments to going independent is stepping into the administration role. Starting your own business means that you will be responsible for… well, everything. From finding and leasing office space to stocking up on any and all supplies to taking care of all other administration roles that are essential to running a business, it’s all on you.
- Technology: While it rules our world, technology is actually one of the biggest pros to not going independent. With technology constantly evolving, it can be costly keeping up with the current tech trends, platforms and tools. Being a part of a company means that you do not have to be on top of researching the best tech (there’s a department for that!) or shelling out all the money for it (there’s a department for that, too!).
- Compliance: Our industry is riddled with rules and regulations, making it hard at times to keep track of it all. Branching out on your own means that you are now in charge of all aspects of compliance and ensuring that you are following the guidelines and meeting all requirements. Independent advisors are required to pay for their own licensing and compliance assistance. On the flip side, working for a company often means that compliance is handled in-house, so you won’t have any extra fees to pay.
While there are certainly many pros to going independent, not everyone is suited for becoming an independent advisor. Remember, no matter where you fall on this important decision, 3xEquity is here to help. Get started with us today, and we’ll help you figure out what’s the best move for you.
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