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October 25, 2013

Large Vs. Small

by The 401k Study Group ®

Goldfish

Large or small practice, large or small clients, large or small plan size?  We get this question from vendors and peers.  For us, bigger is not always better.

Bigger means committees.  “A camel was a horse designed by a committee”.  Bigger means many people you have to build relationships with during the life of the relationship.  Bigger means having to deal with corporate politics, alliances and eventual terminations.  Bigger to us means bigger headaches.

For us it’s simple.  Smaller is better.  With a little bit of time you will find smaller clients that fit well into your sandbox.  These clients will NOT be racing to the bottom on price.  These clients will have succession planning issues. These clients will have family members intimately involved in the business.  These clients will (more often than not) be paternalistic toward their employees.  These clients will be easier to show your value to. These clients will come to value the relationship.

If Bigger is for you, great. But remember committees build camels.  People build successful retirement plans.

 

 

Image courtesy of SOMMAI at FreeDigitalPhotos.net

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