Starting Out Now: Based on my four decades of financial planning experience, if I were to start a practice today I'd do things a little differently

One of the foundations on which to build a financial planning practice is the asset-based fee concept. The recurring fee income aspect creates more value than a commission structure. The fee concept should usually be used for those who invest from $500,000 to $1 million. Those with less than $500,000 to invest would frequently be better served on a commission basis. Not only does the fee system work better for wealthy clients, but also the planner makes more money. A second foundation of a practice is the small-business market, the entrepreneurial market. In organizing the structure of the practice around the two foundations, high-net-worth individuals and small businesses, it is essential to staff well to handle the business and at the same time keep the overhead under control. The planner should consider outsourcing as many things as possible.