Fast-Track Growth: How to Efficiently Scale from $10M to $50M AUM
For independent financial advisors managing $10-20M in assets, scaling your practice can feel like a constant balancing act. You're growing, but it might not feel like you're scaling efficiently. The difference? Growth simply expands your business linearly, while scaling creates systems that generate exponential returns with less proportional effort.
Let’s talk scaling so you can hit that $50M AUM mark sooner than you think.
The Independent Advisor's Growth Challenge
As noted in an Investopedia article, "Many financial advisory firms provide their clients with a broad array of services to address the largest possible market. While this strategy effectively makes almost anyone a potential client, you're competing with every other financial advisory firm with very little differentiation."
But even if you narrow your target market, there may not be a direct path to accelerating your business unless you face operational challenges head-on.
Growing from $10M to $50M AUM presents several common obstacles:
- Operational bottlenecks: Traditional account opening and management can consume up to 25 hours weekly
- Technology inefficiencies: Managing multiple platforms and systems creates friction and errors
- Limited investment capabilities: Restricted access to sophisticated products and models
- Competing priorities: Balancing client service, prospecting, and administrative tasks
How Independent Advisors Can Accelerate Growth
In Episode 125 of the Kitces & Carl Podcast, Carl Richards, Certified Financial Planner™, points out that scaling means you put in less of something and get an increased result. For your financial advisor practice, this likely means you are able to put in less hours and effort and are still getting an increasingly higher AUM as a result.
How is this even possible? These steps can help:
1. Automate Advisor Operations and Account Workflows
The fastest path to scaling is eliminating operational friction. Look for opportunities to automate repetitive tasks and standardize common procedures.
If you're spending 20+ minutes per account opening and manually managing trades across multiple custodians, you're severely limiting your capacity to grow. Forward-thinking advisors have reduced account opening to under 3 minutes and allocation to under 1 minute, dramatically increasing their capacity to serve more clients without proportionally increasing their workload.
2. Simplify Multi-Custodial Financial Advisory Practices
Managing accounts across multiple custodians traditionally requires 3-4 hours weekly and creates significant frustration when paperwork comes back as Not In Good Order (NIGO).
An integrated platform that works seamlessly across custodians can transform this process by reducing multi-custodial management time to 30-45 minutes while maintaining your preferred custodial relationships. This approach provides a unified view of your practice and can reduce NIGO rates to less than 5%, eliminating a major source of operational headaches.
3. Expand Investment Offerings for High-Net-Worth Clients
As your practice grows, clients expect more sophisticated investment options. Scaling efficiently means having access to low-cost proprietary trading models and alternative investments like structured notes and buffered UITs that smaller advisors struggle to obtain.
With efficient trading and rebalancing capabilities backed by institutional-quality research and guidance, you can move upmarket while simultaneously serving more clients. This expanded toolkit enables you to deliver more value without requiring proportionally more time.
4. Streamline RIA Transitions Without Business Disruption
Many advisors remain with suboptimal partners due to fear of lengthy transition periods. However, with the right support, transitions don't have to take 90 days.
With a collaborative process and proprietary transition tools, your move to a more efficient platform can happen quickly with minimal client disruption. The best partners will assist with pre-populating and distributing paperwork, ensuring your team has the training needed to begin using new systems immediately.
Key Performance Metrics for Advisory Firm Scaling
How do you know if you're truly scaling? Monitor these key metrics:
Revenue per employee should increase as you grow, while time spent on administrative tasks should decrease proportionally. With Fusion's integrated platform, advisors typically reclaim 15+ hours weekly that were previously spent on operational tasks. This recovered time can be redirected to client relationships and business development.
Your client capacity per advisor should be expanding. Many Fusion advisors report increasing their account capacity from 75 to well over 100 accounts after implementing our streamlined systems. Perhaps most importantly, profit margins should improve as you add clients—with lightning-fast account opening (under 3 minutes) and portfolio allocation (under 1 minute), you can efficiently service more clients without proportionally increasing overhead.
Create Your Financial Practice Growth Strategy
You can start your scaling journey by first examining your time allocation. Track weekly hours spent on administrative tasks versus client-facing activities. This baseline will identify the highest-impact areas for improvement.
Focus on processes that consume the most time or create the most friction in your practice. Strategic operational improvements create sustainable growth without sacrificing work-life balance or personal time.
Ready to explore how operational changes could impact your practice's growth? Speak with us to learn how transitioning to Fusion's streamlined platform can be quick and beneficial for you and your team.
