Ready to ditch the corporate script and run your own show? Wondering how to become an independent Financial Advisor and build your own business?
You’re not alone. Each year, tens of thousands of Financial Advisors either switch firms or make the leap to independence, with over 90% expressing “no regrets” over the decision.
Still, hesitation is real. Predictable paychecks, built-in infrastructure, and name recognition can make staying put feel like the safer play. But here’s the truth: if you’ve outgrown the model, staying isn’t always safe; in fact, it’s often limiting.
This is a practical guide for Financial Advisors who are ready to take the leap into business ownership. Inside, you’ll find real indicators that it’s time to make a move (and the strategic considerations to weigh if you’re still on the fence).
Why Go Independent?
Many Financial Advisors start their RIA careers at large firms for two key reasons: (perceived) security and (theoretical) reduced responsibility. Large firms employ thousands of individuals and have existing infrastructure, which is particularly attractive if you are:
- New to the industry
- Stressed about management
- Disinterested in legacy
Related: Five Ways Advisory Firms Can Increase Their AUM
But as many Advisors gain experience, they begin to recognize the trade-offs. The very structure that once felt supportive can start to feel restrictive. Below, we outline four shifts Advisors often make when they leave traditional firms and why each one matters.
Control Your Tech, Control Your Practice
Large firms often dictate the technology stack Advisors can use, limiting access to emerging tools that could improve efficiency and client service. In some cases, Advisors even pay extra to use proprietary software that may not be as effective as third-party solutions.
Related: Six Things Every Independent Advisor Should Demand from Their Home Office
The problem? Switching firms won’t necessarily solve this. Many RIA career journeys include moving from one firm to another, only to face a different set of tech restrictions.
- Ask yourself: What could I accomplish with the freedom to choose my own technology?
- Try this: List three client-facing tools you’d upgrade immediately if there were no red tape.
Take Back Your Time
Many Advisors hit a point where they realize they’re spending more time on paperwork and internal processes than on meaningful client conversations. At larger firms, deeper client relationships can be harder to build, especially if you’re pressured to push specific products or services.
Switching jobs might offer some relief, but it won’t eliminate the core problem, because your time is still controlled by someone else’s priorities.
- Ask yourself: How much stronger could my client relationships be if I focused on service instead of bureaucracy?
- Try this: Audit one day. Circle everything you could delegate or automate in an independent model.
Earn What You’re Worth
It’s only natural to question whether your compensation truly reflects the value you bring. If your clients are loyal to you (not the firm), shouldn’t you own your book of business?
A new job may offer a short-term pay increase, but it won’t change the fundamental reality: You’re building value for someone else.
- Ask yourself: What would my income look like if I owned my business instead of splitting my revenue?
- Try this: Run the math. What could your take-home look like at a higher payout with ownership over your book?
Build Real Community, Not Just Culture
Many Advisors at large firms feel siloed, missing the opportunity to collaborate with like-minded professionals. You might feel your development is limited by a lack of real peer support or knowledge sharing, and start seeking it out elsewhere.
- Ask yourself: Does my current environment support my long-term success, or am I outgrowing the culture?
- Try this: Write down the names of three Advisors you could call for business-building ideas. If that list is short, it may be time for a new environment.
How to Become an Independent Financial Advisor (Step-by-Step)
Going independent isn’t about starting over; it’s about starting right. Here’s how to move from employee to business owner with intention, clarity, and momentum.
Step 1: Define Your Why
Before you choose a custodian, a CRM, or a logo, get clear on why you’re making this move. Is it about taking control of your time? Increasing your income? Building a legacy? Serving your clients with fewer constraints?
- Write down your top three drivers for going independent. Then rank them. Your “why” should shape every business decision you make from here.
Step 2: Decide on the Right Business Structure
The independent channel isn’t one-size-fits-all. Will you launch your own RIA? Join a hybrid? Tuck in with a platform partner that offers full infrastructure? The right path should align with your long-term goals, not just your short-term pain points.
- Reflect on what you want to own and what you’d rather outsource. Use this to compare business models.
Step 3: Select a Tech Stack That Works for You
Your technology should power your growth, not slow it down. Think CRM, financial planning software, portfolio management, client portals, and compliance tools, while considering how they work together.
- Make two lists: what tech you have to have and what you’d never use again if you didn’t have to. That’s your blueprint.
Step 4: Join a Support Ecosystem
Even solo Advisors need a team. The right platform partner can provide the infrastructure, operations, compliance, and strategic support you need to free up time and focus on growth.
- Ask: Who will I call when I hit a wall? If you don’t have a clear answer, it’s time to find your people.
Ready to Become a Financial Advisor Business Owner?
For many, going independent isn’t just about leaving a firm; it can also be about stepping into ownership, financial freedom, and growth opportunities.
At RFG Advisory, we help Advisors navigate every stage of this transition, from choosing the right technology and support structure to designing a business that aligns with your long-term goals. Whether you’re actively planning your next move or simply exploring possibilities, we’re here to guide you.
If you’re wondering how to become an independent Financial Advisor, let’s have a confidential, no-pressure conversation about what the future could look like for you. Schedule a call today.