Key Questions Before Forming a Team

There are several things you must examine BEFORE you begin to create any kind of team. Among them are:

• How will income be distributed within the team [that includes ALL the members of the team, not just the investment advisors]?
• What process will you use to adjust the payouts over time as various members of the team increase or decrease their activity and / or responsibilities?
• Are you compatible emotionally?
  
• Do you share the same work ethic?
• Do you share the same investment and client service philosophies? [Note: this is incredibly important.]
• What are your respective areas of expertise? Are they the same or do you complement each others strengths and weaknesses?
• What role will each of you play in relationship [e.g., will one bring in new clients while the other(s) manage them and their assets]?
• How will you resolve conflicts within the team?
• Should the team divorce, how will you divide the assets?
• If one or more of you wishes to transfer the team to another firm, how will you make the decision?
  

These are just a few of the questions you need to address before making the needed commitment to create an effective team. However, addressing them now can save a great deal of money and hard feelings later. Good luck. kfg