The Secret to Growing Your RIA Firm: Delegate Like Elon Musk

Updated: Aug 24


A recent study of 750 financial advisors showed that the majority of respondents are struggling with growth. They also are finding it hard to focus on client and business-building activities. If this sounds like you, then perhaps you should take a page from Elon Musk and Fortune 500 companies by delegating & outsourcing the tasks that are not worthy of your focus.


Just think about the admin & operations tasks that take up your precious time:

  • Compliance Administration

  • Billing & reporting

  • Scheduling calendars

  • Network maintenance & IT support

  • … and a whole lot more!


Yes, these tasks make sure your business runs smoothly. But they can also be a competitive advantage.


A survey conducted by SS&C showed that “financial services firms continue to outsource mid-to-back-office operations to remain competitive.” And here is why: outsourcing allows you to focus on high-impact activities that will grow your business.


That is why we are giving you delegating & outsourcing insights from the best minds in business. And of course, you can always contact us to discuss how we can take operations, admin, & technology tasks off your shoulders.



Elon Musk Knows How to Delegate


Elon Musk is one of the most successful business owners in history. He co-founded X.com,

PayPal, Tesla Motors, and Neuralink; founded SpaceX, and The Boring Company; and served as the chairperson of SolarCity.


So, what makes him so successful?


It is not just his innovative ideas - it is also his ability to delegate tasks and put smart people on his team. As he once said, “I’m not getting paid to do impossible things.” He knows he can accomplish what he sets his sights on… if he has the right people around him.


Musk is a successful entrepreneur because he knows how to delegate, leverage outside resources, and build great teams.


By empowering his team members to produce solutions and helping them achieve their goals, Musk has created some of the most innovative companies in the world. In short, Elon Musk is successful because he knows how to delegate and surround himself with great people.


You undoubtedly understand the benefit of surrounding yourself with great staff. However, do you know when to delegate tasks?


Fortune 500 Companies Know How to Outsource


Fortune 500 companies have crunched the numbers and know that outsourcing provides increased efficiency, cost savings, and improved focus on core competencies. Some of the most notable Fortune 500 companies that have outsourced operations, administrative functions, or even partnered with would-be competitors include Coca-Cola, Walmart, and FedEx.


For instance, Coca-Cola has outsourced the production of many products to third-party manufacturers, which has allowed the company to focus on its core competencies of marketing and sales. Walmart has outsourced logistics and transportation functions to third-party providers. This has helped the company improve its delivery times and service levels. FedEx and UPS worked closely during COVID to plan the logistics of vaccine deliveries.


At AllBackoffice, we get to see financial firms start to think like Fortune 500 executives. The RIAs we work with outsource technology support, admin work, and operations tasks. The result? The firm has more time to focus on growing their business.





What About Financial Services Firms?


The largest financial services firms in our industry have long outsourced various

operations and administrative tasks to focus on their core businesses. A number of these firms went on to build out entire business units to offer their expertise as outsourced solutions to other financial services companies.


Goldman Sachs is one of the largest investment banks in the world and has provided various

administrative outsource services for years through Goldman Sachs Services, and included

accounting, human resources, and compliance solutions for other financial firms.


Citigroup has offered outsourced operations and administrative tasks, such as human

resources, and global operations services for the financial enterprise through a division called Citi Shared Services. Merrill Lynch has a division called Merrill Lynch Shared Services, and Morgan Stanley offered Morgan Stanley Shared Services, which provides numerous services to other firms in the financial industry.


These are just a few examples of financial services firms that understand the huge benefits of outsourcing certain operations and administrative services.


Outsourcing Does Not Mean Overseas, High Costs, or Losing Control


When you do decide to work with a third-party services provider for your operations and

administrative needs, you will want to build a relationship with a U.S.-based team that are

experts in working with financial advisors and wealth management firms.


First, domestic outsourcing firms that specialize in serving financial advisors, will be familiar

with the regulations and compliance issues that can impact your businesses. Having situational knowledge of the financial services industry can help to avoid costly mistakes and ensure the compliant completion of operations tasks. An outsourcing provider with a focus on the financial services industry and financial advisors become part of your team and will create a customized and affordable plan with your input, and integrate your core values and commitment to your clients.


In addition, U.S.-based outsourcing providers often have established relationships with key

wealth management vendors and other financial industry service providers that are critical to

the operations of your firm.


Finally, you may simply feel comfortable working with a partner that is located close by. This

proximity can make it easier to resolve any issues that may arise and maintain open

communication channels.


Here at AllBackoffice, our team of operation and administrative professionals are U.S.-based

with offices in North Carolina, Texas, and New York. We have been providing financial advisors with professional operations and admin services since 2009:

  • Marketing

  • Operations

  • Compliance Administration

  • Client Requests

  • New Client Onboarding

  • Quarterly billing & reporting for clients

  • IT Services, Implementation, & Support

  • Portfolio Management Services (e.g., daily downloads, posting, reconciliation)

  • … And much more!

Operations outsourcing can improve efficiency and reduce costs. However, it is important to

work with a provider that has the knowledge and experience necessary to meet your specific

needs. By partnering with the right domestic outsourcing firm, you can scale your business

without sacrificing quality or service.