What if something happens to you? We all know that unexpected events—such as accidents, serious health problems, or even death—happen every day. The global coronavirus pandemic has certainly driven home this sobering lesson. Eventually the question “What if?” will become “What now?” when a crisis occurs.

Many large firms (i.e., those that have surpassed $1 million in revenue per lead advisor) face a common struggle: managing the size of their client base. When you find yourself at this critical point, activities like strategic planning and business development tend to fall by the wayside. Fortunately, there are steps you can take to get back on track and start building economies of scale in your financial advisory firm.

Across the industry, interest in forming multiadvisor firms has grown. According to Cerulli Associates, 55 percent of advisors now operate within a team. The trend is even more pronounced for large firms: of advisors operating within a practice managing $500 million or more in AUM, 93 percent are part of a team. But while the term “ensemble” has become en vogue to define this new business model, it doesn’t always apply—different models exist within the industry, and there are several defining features of an ensemble practice that must exist before a business can truly be considered an ensemble.

As advisory firms have become larger and more successful, they’ve also become structurally complex—and their objectives, needs, and challenges have evolved, too. To continue to thrive, firms need to be able to respond to shifts in the landscape. But what’s the best way to gain competitive advantage? How have growth strategies for financial advisors changed? Let’s consider four practice management fundamentals for advisors today: