Set your consulting business up for success in 2025

The advisory landscape is undergoing a fundamental shift that requires financial advisors to take immediate action.

Financial Advisor Magazine points out in a new article that while companies such as Creative Planning have been valued at $16 billion, traditional business models are facing increasing challenges and require strategic adjustments.

Client retention has long been considered a strength of consulting firms, but it may be more volatile than imagined. Research from CEG Insights and JD Power shows that current retention rates stem more from bullish conditions and customer inertia than true loyalty. The impending intergenerational wealth transfer exacerbates this vulnerability, with 41% of advisors viewing inheritance-related asset transfers as an existential threat.

Forward-thinking advisors must focus on serving younger, higher-income clients in their 30s who seek fundamentally different services. These newly affluent clients need guidance on salary negotiations, stock options, debt management and business development. While profits may be lower initially, building relationships with this population now can help advisors achieve substantial recurring revenue growth for decades to come.

The market is moving towards a specialized service model based on a client’s net worth and specific needs. Ultra-wealthy clients ($25 million and above) require comprehensive family office services, while “moderately wealthy” clients ($5 million to $25 million) prefer a la carte services. Successful companies need to choose their areas of focus, whether to build a 401(k) platform with wealth management capabilities, focus on specific occupations, or serve the broader middle class.

Healthcare planning has emerged as a key service area, with 68% of ultra-high net worth investors citing it as their primary focus. Consultants must develop strategic partnerships with healthcare professionals to provide concierge medical services. In addition, entrepreneurial clients are increasingly seeking advisors who can assist not only in wealth management but also in wealth creation, requiring expertise in new venture management, business valuation and succession planning.

The key message to advisors is clear: the days of being all things to all people are ending. Success in 2035 and beyond requires choosing a specific area of ​​focus, developing deep expertise, and delivering demonstrable superior value in that area. Consultants must begin this transformation now to remain relevant and competitive in the ever-changing consulting landscape.

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