I was talking with my brother yesterday about what it means to be a broker versus a wealth manager. I believe they are two fundamentally different business styles that reflect the lifestyle choices of the advisor more than the advisor’s philosophy of money management.

You can’t do comprehensive wealth management without building a company. And your job is very different when you’re running a company and managing staff. To make the move to wealth management means building a staff of professionals—relationship managers, financial planners, and tax advisors. Brokers who don’t want the numerous headaches and risks associated with running a company will likely stay where they are.

Financial Planning Magazine has a good article about taking your firm to the next level (comprehensive wealth management):

In recent years, a growing number of advisors have come to understand that wealth management is the key to success. If you’re like these advisors, you’ve already begun to institute a wealth management approach. At the very least, you’ve probably thought about it. But no matter where you are in the process, it’s important to know this important fact: Your efforts alone can’t make your transition to wealth management a reality.

They lay out a 7-step plan which is:

1. Envision your success.
2. Create a strategic action plan.
3. Present your plan.
4. Turn partners into clients.
5. Gain consensus.
6. Form your coalition.
7. Report your successes.

It focuses on getting buy-in from your current staff and doesn’t go into details about exactly what “wealth management” entails. But a good read nonetheless.