Most practices assume their recurring revenue will naturally increase. In reality, client attrition, fee compression, and market drag often outpace organic client acquisition. Model your true trajectory over a 5-year horizon.
Warning: Negative Real Growth. Your practice is shrinking in real terms. The new assets you are onboarding are not keeping pace with client withdrawals, attrition, and inflation. You are slowly liquidating the business.
Stagnation Risk. The business is growing, but barely outpacing inflation. This is typical of mature practices that rely solely on market uplift rather than active client acquisition.
Healthy Accumulation. Your net-new asset generation is sufficient to compound real value into the practice over the medium term.