The 3 M's of REAL Independence

We help advisors achieve REAL independence and experience REAL results.

FocusPoint Solutions recently coined the phrase The 3 M’s of REAL Independence™. Our consulting team has found that this concept can help advisors better understand what sets our solution apart from the others.

For almost 20 years, we’ve been working alongside fiercely independent advisors to help them achieve their ideal business. From the very start, our solution was built “by advisors, for advisors” and we continue to maintain that spirit. This mindset sets our solution apart from the others.

From our standpoint, in order for an advisor to be truly independent, their business must pass The Triple M Test™. This means it has the three crucial components (or M’s) which represent true independence: *Mobilization*, *Modernization*, and *Monetization*.

So, how can you tell if your business has these elements? We call it The Triple M Test™.

Does your business pass The Triple M Test™?

Mobilization:

  • You own your clients, your licenses, and your data.
  • You are not beholden to anyone, nor are you under any kind of restrictive covenants or conditions.
  • You are free to move and pivot to position your business for success in a changing environment.
  • If you need to make a change, outside of your own clients, you do not need permission from anyone to take action.

Modernization:

  • You can take advantage of all the latest (non-proprietary) technologies and industry innovations.
  • You are not restricted to what a service provider chooses for a tech stack.
  • More importantly, you’re not restricted to what they do NOT choose to invest in for various reasons (cost, understaffed compliance departments, competition, unused licenses purchased upfront in bulk, etc.).
  • As the market and your target demographics change, you are able to make quicker adjustments; i.e. testing out new markets or solutions on your own to make timely decisions that are right for your business.

Monetization:

  • As an independent RIA, you can achieve the most value for your business.
  • Your fee revenue can flow through to a corporation versus a person, which brings tax advantages and increased valuation metrics.
  • By maintaining more control over your own balance sheet (versus being a line item on someone else’s) along with its levers of profitability, you have more room to grow faster and smarter.

Are you in a vertically or horizontally structured business model?

★ Vertically:

  • You are operating in a cylindrical platform structure based on whatever your service provider (not you) has designed.
  • More often than not, this business structure results in the advisor being managed in one of two ways:
    • To the lowest common denominator, or
    • For the underlying benefit of third-party participants, i.e. private equity, venture capital, future IPO ambitions, bankers, angel investors, affiliated entities, executive comp plans, etc.

★ Horizontally:

  • Your business has the ability to create a wide versus narrow economic moat.
  • You are able to identify and optimize the quality of solutions or services more easily, adding or deleting them as you see fit.
  • You can enter into new markets or lines of revenue, targeting new undiscovered solutions which make sense for you and your business.
  • You have more freedom to experiment and innovate on your own.

To learn more, contact our

Business Development & Consulting Team