#FA Success Ep 333: Scaling A Small-Enterprise-Proprietor Boutique To A $31M Retainer-Based mostly Valuation, With Jim Dew

Welcome again to the 333rd episode of the Monetary Advisor Success Podcast!

My visitor on immediately’s podcast is Jim Dew. Jim is the Co-Founder and CEO of Dew Wealth Administration, an unbiased RIA primarily based in Scottsdale, AZ, that gives virtual-family-office-style monetary planning on a month-to-month retainer foundation for 150 small-business proprietor entrepreneurs.

What’s distinctive about Jim, although, is how he has scaled his retainer-based boutique agency to greater than $7 million in income, a $31 million enterprise valuation, and is rising organically at a 40% development price, by offering a high-touch complete recommendation providing for his enterprise proprietor area of interest clientele.

On this episode, we discuss in-depth about how, regardless of not implementing an AUM mannequin, Jim’s agency was independently valued at $31 million of enterprise worth primarily based on the energy and development price of their retainer-based pricing mannequin, how Jim arrived at his retainer-based mannequin that costs $4,000, $6,000, or $10,000 per 30 days to cowl the breadth of the ‘monetary quarterback’ providers he supplies to his supreme goal consumer (enterprise house owners with greater than $1M of EBITDA per yr), and why Jim and his agency not solely present a deep-dive monetary planning evaluation to prospects however have advanced it to the purpose of charging an upfront charge of $25,000 to prospects simply to undergo it, after studying the laborious method in suggestions from present purchasers that freely giving the evaluation free of charge was really undermining their perceived trustworthiness.

We additionally discuss how Jim has structured his virtual-family-office-style strategy not by delivering tax, authorized, and different providers in-house however as a substitute by frequently constructing an inventory of exterior tax, authorized, and different professionals that he and his agency don’t simply refer out to however have actively sought out and vetted primarily based on their credentials, training, expertise, and character and follow-through. Jim describes how he and his agency present what he calls a ‘time power protect’ for his or her busy business-owner purchasers by serving to them discover the fitting professionals they might want, managing the tasks with their professionals, and even fielding the inevitable enterprise pitches that come at their purchasers, and why Jim and his agency use Monday.com as a substitute of a standard CRM to each map out and handle workflows and duties for purchasers but in addition to maintain detailed details about their vetted professionals and COIs… whereas additionally making a dashboard in order that purchasers can monitor the progress of the entire providers that the agency supplies them.

And be sure to take heed to the tip, the place Jim shares how, after a few years of struggling to rent the fitting candidates for his agency, he realized that the recruiters he was utilizing weren’t delivering and determined to implement an ESOP to draw candidates in addition to hiring a director of operations who executed a marketing-esque hiring funnel to usher in extra advisor expertise, why Jim feels strongly about growing a distinct segment focus as a result of he discovered that by turning into an professional in a specific subject, it’s simpler to market and clearly talk providers and helps the fitting purchasers discover his premium providers, and why, regardless that Jim has acquired provides previously, he feels he gained’t be promoting his agency anytime quickly regardless of its robust valuation a number of as a result of he believes his distinctive enterprise mannequin contributed to the 10X development of the agency previously 8 years and desires to proceed his legacy and impacting how monetary planning is supplied for enterprise house owners for the foreseeable future.

So, whether or not you’re enthusiastic about studying about why, as a result of Jim is a enterprise proprietor himself, he needed to work with enterprise house owners to present them the assist they should be profitable, how Jim’s spouse Mimi develops and helps the agency’s group tradition, or why Jim feels a retainer-based mannequin is extra fitted to his purchasers as a result of they take pleasure in understanding precisely how a lot they’re paying every month and don’t have to fret about long-term contracts, then we hope you take pleasure in this episode of the Monetary Advisor Success podcast, with Jim Dew.

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