Breaking through the capacity wall with Angie Herbers

Last week, I jumped on a call with my friend and growth expert Angie Herbers to talk about scaling growth as we prepare for this year's (free) Summer Series on August 20.

We dug into something every growing firm faces: the dreaded "capacity wall." This wall shows up when demand outpaces your firm’s ability to onboard and service clients effectively. And while scaling growth is the goal, managing capacity is the key—but most firms don’t have a strategy or process in place.

So how do you tackle it? Start by looking at capacity in three essential areas:

1. Personal capacity is all about how productive each advisor is with their time. Believe it or not, advisors can spend 30-50% of their time on under-productive tasks. Boosting productivity here can lead to significant gains in overall capacity.
2. Client capacity recognizes that an advisor can only handle so many client relationships before the quality of service (and margins) starts to slip. Without enough revenue to support the workload, service demands erode capacity and profitability.
3. Revenue capacity reflects the capacity to generate revenue. Instead of just adding more clients, focus on increasing the average client size. This approach can drive more profitable growth without the need for constant hiring.

With the right strategies, these challenges can transform into growth opportunities. Here’s a sneak peek of what Angie and I will explore more on August 20:

1. Optimizing personal capacity: Implement time management techniques and scalable systems to supercharge advisor productivity.
2. Expanding client capacity: Consider hiring more advisors or support staff, but ensure you optimize for capacity first—otherwise, you’re just compounding the problem.
3. Maximizing revenue capacity: Differentiate your services and zero in on your ideal clients. By specializing, you can scale efficiently while delivering deeper value.
4. Leveraging strategic partnerships: Partner with firms offering complementary services to meet client needs without stretching your resources too thin.
5. Right-sizing your client base: Segment your clients, define specialized services, and ensure profitability across each segment. Remember, treating clients fairly doesn't always mean treating them equally.

Angie and I also chatted about how strategy impacts structure and how structure affects staffing—a common thread in my recent conversations with Mark Tibergien and Michael Kitces.

There’s a lot to unpack when it comes to scaling growth, which is exactly why it’s the theme of this year’s Summer Series.

Limitless Summer Series: Scaling Growth

August 20 | Sponsored by RFG Advisory

Register Now (FREE)

Join me and industry heavyweights Mark Tibergien, Michael Kitces, Angie Herbers, Candice Carlton, Carolyn Malle-Dalle of FiComm, and Shannon Spotswood of RFG Advisory. We’ll dive into how to scale growth without eroding margins—or the joy that comes with success.

Let’s crush this week!

No limits,

Steph