ABOUT THIS EPISODE
Building an OSJ sounds like the obvious move if you want a bigger valuation. Frank LaRosa says that logic is exactly what's costing advisors their multiple.
Frank and Stacey open with a question most advisors never actually ask themselves before recruiting other advisors into their practice. What is your unique ability and is managing people part of it?
Frank shares a story from a coaching client who built out an OSJ, then found himself spending his day solving other people's problems instead of doing the work that made him successful in the first place. That shift from servicing clients to servicing advisors is one of the biggest hidden costs in this model.
From there, the conversation turns to ownership. Frank explains why collecting an override on another advisor's business will never get you the same financial advisor multiple as owning the revenue outright and why some of the most successful firms in the industry deliberately choose not to play that game.
The episode wraps with a challenge for any advisor thinking about their next move. Stop building toward what you think you're supposed to build and start building around what you're actually great at.
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?
Chapters:
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
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