WLIM: Scaling up a wealth management boutique
Case Study

WLIM: Scaling up a wealth management boutique

18 pages
December 2020
Reference: IMD-7-2209

Jonathan Lachowitz founded a start-up venture in the Financial Planning industry called White Lighthouse Investment Management in 2006. He targeted a niche segment (US citizens living abroad) that had a critical problem that was not addressed by existing companies (e.g. US Tax Reporting). The organization has grown slowly and consistently. In 2015 the current form of organization is stretched to a maximum. There are several decisions Jonathan needs to make, he needs to decide whether or not to hire new employees or partners and he needs to come up with a strategy on what type of clients he should accept.

Learning Objective
  1. How targeting a niche segment can be the key to success (need-based market segmentation).
  2. How to create a knowledge-based service company (using Business Model Canvas).
  3. Understanding the competition and fee models in the financial planning industry.
  4. How the entrepreneur’s unique choices link to the financials by analyzing the DCF projected in 5 years, NPV, IRR and RI.
  5. How this unique mix of consistent choices enabled initial success and sustainable growth.

 

 

Keywords
Strategy, Entrepreneurship, Start-up, Financial Planning, Services, Knowledge Economy, Business Growth, Customer Focus, Customer Segmentation, Financial Analysis
Settings
Switzerland, United States of America
White Lighthouse Investment Management, Financial Services
2007 – 2018
Type
Field Research
Copyright
© IMD 2020
Language
English
Related material
Teaching note, Video
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