Positioning for Growth

Positioning for Growth

A Father and Son Story

When I was in fifth grade, I was skiing with my father—an elite ski racer in his day and a lifelong instructor. I had the privilege of growing up with a cabin at Crystal Mountain, so skiing has been a part of my life since I was three. That day, we were cutting through a mogul field, and I was doing my best to keep up with him. He danced through the moguls effortlessly while I struggled behind, frustrated.

I finally stopped and asked, “Dad, how do you do that? How do you ski through these moguls so smoothly?” In my mind, he was an expert—far better than me.

He smiled and said, “Ron, you have to get in the right position before you start. Hands forward, keep them in your field of vision, lean against the tongue of your boots. You’ve got to feel your boots. Keep your weight forward.”

I looked at him and said, “That can’t possibly be right. That just doesn’t feel right.”

He just grinned and replied, “Why do you think there are so many intermediate skiers?”

That lesson has stuck with me: success comes from positioning yourself before you begin.

At Equity Partners, our comprehensive solution is designed to do exactly that—put advisors in the right position before they attempt to scale. As I’ve listened to many advisors describe how they’re currently running their business, I’ve shared candidly that they will likely max out well under $100 million in AUM unless some key elements shift.

And here’s why:

• It’s simply a math problem. You can only handle so many accounts without leverage. You need proven systems, strategies, and solutions that scale.
• You won’t attract larger accounts using mutual funds—$3 to $5 million accounts want to do better. Sophisticated investors want individual securities, their own cost basis, and control over tax consequences.
• Redemptions and portfolio shifts in mutual funds trigger forced capital gains distributions, which will eventually frustrate clients—no matter how good the performance looks on paper.
• Not using third-party institutional portfolio managers will cap your growth. While you and your team may be good investors, trusting a few individuals to make all investment decisions doesn’t inspire confidence for larger investors.
• Lack of formal presentation resources or an investment process is a critical gap. Showing up with a legal pad and suggesting a few funds doesn’t convey the professionalism needed to compete at the next level.
• Every hour you spend on investments, billing, or reporting is time stolen from growth. To build something enduring, you must shift your focus from technician to business builder. In this new, technologically advanced market, you’re going to need to offer more personal and professional expertise.
• Having the backing of an investment process managed by third-party, institutional, pedigreed investors is the only way to engender confidence with a CPA. That CPA’s client relationships are his only real asset—and he cannot risk a bad outcome. But if that advisor is backed by a former Chief Investment Officer of a $2 trillion firm, the CPA feels far more comfortable referring a client. That kind of professional assurance is what unlocks consistent, high-value referrals.

In conclusion, to become an expert skier, I had to do two things: first, listen to the coaching of someone who had been there and done that—and second, overcome the natural feelings that led me to make poor decisions.

In the same way, I meet with advisors every day who repeat the same mistakes that limit their growth and success—because they obey their feelings instead of following a proven roadmap.

Our goal is to give you everything you need to be massively successful. We have been there. And done that. And we would be honored to help you take the next step.

Here to help you grow,

Ron Robertson