20th February 2026
Growth with intent
Most advice firms don’t lack ambition. They lack architecture.
You hit £5m, £10m in revenue. You bring in advisers, hire a COO, get a project around technology. You’ve got three-year forecasts, hiring plans, and AUM targets. Maybe even a succession framework someone called “robust.”
But something else is happening underneath.
The business is getting ‘more’. More people to manage, more governance, more operational drag. Decisions take longer. The culture that felt natural at 15 people feels forced at 30. Advisers are in it for themselves, or aren’t really sure what they’re in for at all – other than debt. People start saying “back when this place felt like a team….”
You’re not failing. You’re drifting. And at scale, drifting is expensive.
The optionality trap
One promise of building a larger firm is supposed to be optionality. Certain hard-won freedoms. The chance to change leadership. Restructure. Bring in capital. Spin out. Buy out. Buy in. Or just some flexibility to make different choices than you’re making now.
That’s what scale is supposed to afford you.
But many firms discover the opposite. The bigger they get, the more trapped they feel.
You’ve got 30 advisers, but five of them control 60% of the revenue, and all are in their late 50s. Or you’ve got a brand no one can quite explain anymore. Or systems held together by three people you can’t replace.
That’s fine. Until real life happens and someone wants to retire, gets ill, or falls out with someone else. Or systemic and regulatory change happens (again!).
Optionality doesn’t come from size.
It comes from clarity, governance, and transferability.
What no one tracks, but everyone feels
Large advice firms track revenue per adviser, AUM growth, productivity, and cost-to-income ratios. They’ve got dashboards of KPIs and quarterly reviews where everyone nods at upward-trending graphs.
What they don’t track are the things that actually determine whether the growth is a leading or lagging indicator of future strength.
Cultural coherence. Can a new joiner explain what this firm stands for? Do advisers operate like they’re part of one business or several?
Governance. Who actually decides things in this business? Is it clear? Documented? Or does everything still route back to two people who’ve been here since 2009?
Dependency ratios. How much of your revenue sits with people who could retire, leave, or just get bored? How much of your operations depend on individuals rather than systems?
Reputational risk. What happens if an adviser screws up publicly? Do you have the skill set to contain it – or will it take the whole firm down?
These aren’t soft concerns. They’re real and they’re structural. And they decide whether your firm becomes more valuable as it grows – or just more expensive to run.
Five years from now
Five years from now, when you’re discussing what happens next – succession, investment, sale, or something else — no one will ask “Did we hit our Q2 targets in 2026?”
They’ll ask: “Is this still a business people want to lead, work in, and invest in?”
If the answer is no – if the firm has become a grind, if the culture has frayed, if the economics only work because three people are carrying the whole thing – then it doesn’t matter how big you got.
You didn’t design a business. You accumulated one.
Five design levers
There are five things that determine whether growth compounds what matters:
1. Identity and brand
Not your logo. But whether people inside and outside the firm can actually explain what you stand for. Growth blurs this. You start as “the boutique firm for entrepreneurs” and end up as “the firm that does financial planning, also some investment stuff, also we’ve got a mortgage broker now.”
If your advisers can’t articulate what makes you different, your clients definitely can’t, and your buyers wont either.
2. Governance
Not compliance. But who decides what? How is risk owned? How does power actually flow in this business? Who is accountable for what?
Most firms have governance that exists in theory – policies, committees, org charts. But decisions still get made in the same informal ways they always did. That works until it doesn’t. Usually when money, succession, or liability is involved.
3. Client bank quality
Not how big your client bank is. How transferable, profitable, and loyal it is. Whether it’s currently being designed to be the client bank you want in five years.
A £500m book where 60% of the assets sit with ten clients in their 70s might look impressive today. A client bank of 35 or 40-year-olds with £75-100k each and 30 years of earnings ahead? That’s the difference between a business that’s growing and one that’s harvesting what’s left.
4. Operational leverage
Are your systems making you less dependent on individuals – or more?
You can have brilliant technology and still be operationally fragile. If only two people understand how the data flows, if every process has an asterisk that says “check with Sarah for the workaround,” you haven’t built leverage. You’ve built dependency with better software.
5. Adviser depth
Are you building a firm that will outlive its current stars?
Not whether your advisers are good. Whether you’re developing the next layer. Whether your brand can carry advisers, or whether advisers have to carry your brand. Whether clients are choosing the firm or just accepting it because they like their adviser.
If you lost your top three revenue generators tomorrow, would you have a business or a crisis?
These five levers don’t show up on today’s P&L. They probably don’t appear in your quarterly board pack. But they determine whether growth creates optionality or fragility.
Most firms don’t realize which one they’re building until it’s too late to course-correct easily.
What this actually means
Before you hire the next adviser, before you allocate the next budget, ask - what is this making us become?
Not just “will this increase revenue” or “does this hit our AUM target.”
Rather - does this make us more coherent or more fragmented? Does this increase our dependency on individuals or reduce it? Does this strengthen what we stand for or dilute it? Does this give us options in the future?
Be active and willing to say no to growth that makes you bigger but weaker.
Design governance that works when people disagree, not just when everyone gets along.
Build systems and people that transfer knowledge, rather than hoard it.
And accept that the business you’ll want to be running in five years might look very different from the one you’re building right now.
Growth is inevitable if you’re any good. Life is inevitable even if you’re not.
But whether that growth creates a firm that’s valuable, resilient, and pleasant to run?
That’s a choice that gives you optionality.
By Claire Blackwell, The NexStage
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