Understanding the Numbers for Growth

To achieve significant organic growth, it is essential for advisory firms to start with a thorough understanding of their financial numbers. For a billion-dollar RIA aiming for 15-20% annual growth, this means analyzing their current revenue and determining how much additional revenue is needed to meet their goals. For example, if the firm generates $7 million annually at a blended fee of 70 basis points, achieving 20% growth would require an additional $1.4 million. Establishing a clear financial framework provides the foundation for devising effective marketing and growth strategies.