## FAQ

### What is the difference between scale and growth in the context of advisory firms?

Scale in an advisory firm refers to a disproportionate increase in revenues over expenses, often due to increased efficiencies within the business. Growth, on the other hand, involves a proportional increase in both revenue and expenses.

### How can early-career advicers determine the type of business they want to build?

Early-career advicers should focus on adding more clients to reach capacity before worrying about scaling their business. By prioritizing the most immediate problems and identifying the most pressing issues, advicers can determine the direction they want their practice to take.

### What are some common concerns around scaling an advisory firm?

Some common concerns around scaling include fears about introducing new services with low margins, the reluctance to hire and manage additional staff, and the belief that technology can help achieve better margins with minimal headcount.

## Conclusion

In the financial advice industry, the concept of scale often leads advicers to worry about how they can grow their practices long before scale becomes an actual issue. However, focusing on immediate problems, adding more clients to reach capacity, and addressing pressing issues are key to moving a practice forward and improving profitability. By prioritizing the next hard thing and identifying roadblocks to progress, advicers can set themselves up for success in building the type of business they envision.