Indy working out of the home

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Feb 17, 2006 8:16 am

Does anyone do this? How are you doing in terms of gross? What did you take with you aum?

Feb 17, 2006 10:13 am

I did it for a few months when I was in transition between EDJ and my new office, which was being remodeled. So I don't have any figures for AUM but I imagine that your AUM and gross would not be as much as if you have a formal office.  Mine certainly picked up once I was back in an "official" setting.


It was a pain in the rear. 


1)Too easy to get distracted by other things at home


2)PLUS it meant that I had to keep my house immaculate  because clients would have to come through the house to get to the office.  I don't have an outside entrance.  I hate housework and the place had to look like a model home, no signs of us living there, no coffee cups left on the counters, no shoes kicked off by the door.  My husband hated it too. If he wanted to come home for lunch and I had clients he didn't feel comfortable being in the house.  We felt like we were not living in our house anymore.


3)Paper work was always there. I couldn't leave the office and relax because the office was always lurking at home.


I understand now with the new rules that redefine what a branch office is, that if you have clients come to your home at all you are classified as a branch office. Subject to inspections and have to register your home with the NASD just like a regular office.


You might reduce your expenses by not having a formal off site office, but I think the trade offs are not good.

Feb 17, 2006 10:54 am
ezmoney:

Does anyone do this? How are you doing in terms of gross? What did you take with you aum?


You might want to consider sharing office space with other professionals. With these set ups each person has their own privare space or suit, but, shares conference rooms, secretaries, office equipment, and supplies..


Another way to go: In my area, south jersey, five brokers left their firm and moved to a low rise office park. Same idea as above, yet, they are split into two groups, with two different broker dealers. Sharing employees, equipment, and splitting the rent has really increased their yield to pocket.


I'm not saying that working from home doesn't work and shouldn't be considered.

Feb 17, 2006 5:03 pm
ezmoney:

Does anyone do this? How are you doing in terms of gross? What did you take with you aum?



I'm doing it for now.  Works as a matter of convenience and keeps my overhead low.

Took about 60% of prior AUM but that also included a geographic move.  Many inconveniences such as those cited by Babs, but also nice to have a short commute and the ability to catch up on work for 30-40 minutes after the kids go to bed or on a Saturdy morning, without having to get in a car and go anywhere.

I expect, though, to get an office within a year.

Feb 17, 2006 8:44 pm

how is the gross production going compared to working for the man? Please give me examples month vs month, qtr vs. qtr. what ever will help.

Feb 17, 2006 11:31 pm
ezmoney:

how is the gross production going compared to working for the man? Please give me examples month vs month, qtr vs. qtr. what ever will help.



It's still behind the old pace but growing steadily.  Remember, there was a major geographic relocation involved too.

I have also been somewhat selective and used the opportunity to leave a number of smaller relationship or large but totally nonproductive or dysfunctional relationships behind.  Going forward I DECIDE who I shall deal with....not take all as they come.

Last but not least-I was already doing some fee biz but have made a big shift further in that direction as part of this.

So-up to about say 65% of my old run rate, but now more than half of that is fees.  This is about 8 months in.  If I'd not moved, or dumped a few undesirable folks, I rather suspect I'd be over 75%.  But that's ok.  Happiness and freedom and lower stress count for something.

Also I'm getting WAY more referrals-unsolicited-from clients and CPA's-than ever before.  I think they see me as a truly independent professional now.

You want more specifics, PM me and I'll share best I can.

All things told-it's hard work but it's MY work for MY business.  And on days when I'm not seeing clients I wear jeans, skechers, and a sweater to work not a damn monkey suit.  NO office politics.  Need some help?  Hire an assistant as quick as I can/want to without seeking approval of a branch manager or PITA HR department flunky.  Need a new computer for that assistant?  Hop on Dell.com, spec the baby out, and 3 days later it's in the office WORKING!

I have better technology than I had at a major wirehouse, and the flexibility to buy whatever tech or data I want that I don't have.

Working on recruiting an real life insurance pro who's going to potentially work with me and share a little biz.  On my terms, not someone else's.

Yes the higher payout is nice but it's about so much more than that.

Feb 18, 2006 12:20 am

I have better technology than I had at a major wirehouse, and the flexibility to buy whatever tech or data I want that I don't have.


That is sure the truth.  The technology is so much better when I decid what I want and how much I want to pay for it.


Working on recruiting an real life insurance pro who's going to potentially work with me and share a little biz.  On my terms, not someone else's


This is my business model too. I am looking for an insurance person to handle life, ltc and health insurance.  I can do those things, but it is spreading me too thin. I would love to find someone to share the office and cover for me when I want to go on vacation so I don't have to hire/pay an employee full time.  I think an override on the insurance business would not be out of order


Working out of the home just didn't work for me.  Perhaps if I was in a more convenient location and had an outside entrance to the office that would be different.    Where I am now I have a lot of drop in traffic with clients just wanting to come and shoot the bull. Many of my clients are retired and have a lot of time on their hands.  This is bad and good.  Bad because it takes up productive time that I should be making calls or doing something else, but good because often they bring a friend who then becomes a client down the road and good because we get into conversations that lead to uncovering needs that I wouldn't have known about otherwise.


This is the great thing about being Indy is that I can  waste some time if I want to without a branch manager all over my back.

Feb 18, 2006 2:06 am

HOLD THE PHONE...........If you are going to be in this business get an OFFICE, don't work out of your home.............


You can always get an office to share with a CPA, or an Attorney, or an Insurance Agent, or another Advisor, but don't work out or your home.


Would you want to invest with someone that can't even afford an OFFICE, and they are going to do what with your MONEY?  


HOW WELL DO THEY HANDLE THEIRS?

Feb 19, 2006 2:09 pm
Player:

HOLD THE PHONE...........If you are going to be in this business get an OFFICE, don't work out of your home.............


You can always get an office to share with a CPA, or an Attorney, or an Insurance Agent, or another Advisor, but don't work out or your home.


Would you want to invest with someone that can't even afford an OFFICE, and they are going to do what with your MONEY?  


HOW WELL DO THEY HANDLE THEIRS?



So you say, Mr. Know-it-all.  My clients who are actual business owners have no problem with my working out of my home....as I've explained to them it is not merely a lifestyle choice but also a conscious decision to keep my overhead low.  Avoiding rent allows me to spend the money on other important issues-such as support staff(just hired my first) or marketing, or on myself and my family.  Genuine business owners 'get' that idea.  Anyone else who is so superficial as to decide not to do business with me because of the location of my office-temporarily-well to he** with 'em.  I have plenty of work without them.