Welcome to the second in a series of industry content from Panoramix designed to help advisors succeed in a more challenging operating environment.

Key to the success and survival of any advisory firm are the core revenues it generates as part of its underlying operations. In the wealth management industry, advisory firms are known to be highly profitable enterprises, particularly those that charge an ongoing fee vs. a commission.

Those ongoing fee-based revenue streams are extremely valuable not only in generating current income for owners but also for building long-lasting value that can be monetized upon sale or internal succession upon retirement.

Thus, when establishing a new firm or conducting a periodic strategy review of an existing firm, industry experts all recommend a thorough analysis and benchmarking of fees and billing schedules to ensure that the firm is optimizing their revenues and ensuring a consistent cash flow.