Spotlight On: Mike Ellis, President & Owner, Madden Advisory Services Inc.
June 2024 — In an interview with Invest:, Mike Ellis, president and owner of Madden Advisory Services Inc., discussed the strategic initiatives of his firm, emphasizing their deep-rooted community contributions and forward-looking approach amidst Jacksonville’s evolving economic landscape.
What are some highlights and contributions of Madden Advisory Services in the Jacksonville area?
From a community standpoint, we continue to offer a radio show that provides valuable general financial information to local listeners. This tradition was started by my stepfather in 1982, and we’ve kept it running ever since. On the business side, we are close to managing a quarter of a billion dollars in assets. We anticipate reaching this milestone within the next one to two years.
What makes Jacksonville such an ideal location for business expansion and relocation?
A key advantage is that Jacksonville is the largest city in the United States by land area, yet it’s not overdeveloped. Unlike other major metropolitan areas, such as Atlanta or Miami, where you might struggle to find available space or need to demolish existing buildings to create new ones, Jacksonville still has room to grow. This provides a unique opportunity for businesses wanting to develop their own space without the need for extensive teardowns.
Can you discuss the advantages and challenges of the growth in the Jacksonville Metropolitan Service Area?
The growth in our area is beneficial for families and our staff as it brings new opportunities, fresh ideas, and diverse perspectives. This growth supports both new and organic development within existing communities. However, growth is a double-edged sword. Some individuals may struggle to adapt or keep pace with these changes. Despite these challenges, our goal is to include as many people as possible in this growth and help them succeed.
What impact has Jacksonville’s growth had on the work Madden Advisory Services is doing?
We are witnessing a significant influx of new residents and businesses. At the last chamber meeting I attended, it was reported that our metropolitan area is growing by about 88 people per day. This growth includes both individuals relocating with jobs and those seeking employment. Such dynamics bring many newcomers who need various services, including financial planning and investment management, which we provide. Additionally, busy professionals might need personal services, such as lawn care, which they simply don’t have time to handle. This scenario creates numerous secondary and tertiary business opportunities, which we are a part of. Many come to us as financial planners with dreams and aspirations, and we offer them valuable pathways to bring these visions to life and be part of the area’s growth.
Are there any initiatives or partnerships that your company is involved in that help develop the small business sector?
We continuously seek to establish relationships with high-quality professionals such as accountants and estate planners to support and foster growth. Our clients are located throughout various areas, not just on a specific street in Jacksonville, and often prefer professionals who are not only excellent at their jobs but also conveniently located. This preference offers a great opportunity to highlight and support individuals who have left larger corporate settings to start their ventures. We focus on uplifting these mid-sized and small businesses, which in turn support us and our clients. This dynamic contributes significantly to our community, much like traveling from Jacksonville to Tampa, which feels like crossing into another state.
How are you leveraging technology and innovation?
We’re witnessing a dichotomy in how different age groups prefer to receive financial advice. The youngest demographic often seeks guidance through short, one to two-minute video clips on social media platforms. However, regulatory barriers in our industry, primarily due to concerns from the SEC, limit our ability to engage effectively in these spaces. These platforms require general advice, which often isn’t useful, explaining why they are more populated by salespeople than by financial professionals. True, tailored financial advice cannot be distilled into such brief formats.
This is one reason I value our radio show—it allows for a more personalized interaction. Listeners can call in with specific questions and provide some context, enabling us to offer semi-customized advice. Platforms like YouTube shorts or TikTok don’t allow for this depth of interaction.
On the other hand, older millennials and those beyond that age group distrust the superficial nature of short-form videos and value more personal interactions. This preference guides our strategic focus on traditional methods of engagement, as these individuals typically possess or are about to inherit assets.
We continue to prioritize personalized service over trendier, less personal methods. This strategy also supports the longevity of small, boutique advisory firms. Such firms thrive by treating clients as individuals rather than numbers, contrasting with the impersonal nature of large corporations. We work closely with local professionals like CPAs and estate planning attorneys, creating a cohesive team that offers comprehensive services akin to larger organizations, but with a personal touch that remembers each client’s last name.
What differentiates Madden Advisory Services Inc. from other players in the market?
The most noticeable difference between us and our competitors is our approach to financial advice. Many people are familiar with the service at large brokerage houses like Fidelity, Merrill, or Vanguard. They might provide straightforward investment recommendations, but often these are based on limited information. At our smaller firm, and others like us in Jacksonville, we delve deeper. We don’t just ask, “What’s the best investment?” but also, “Why is this the right investment for your specific goals?” We consider the broader implications, including tax consequences, which large brokerages often overlook, telling clients to consult their tax advisors instead.
At our firm, we tackle these questions directly. We’ll do the preliminary calculations, provide our insights, and then recommend checking these with your CPA for confirmation. This approach doesn’t just simplify our clients’ lives; it embodies the true spirit of our industry—to make managing your finances easier, not more complicated.
What are your expectations for the next few years, and what challenges are you closely monitoring?
Over the next 2-3 years, one of the major challenges we expect to face across the financial industry is the advent of AI. The impact of AI at a corporate level is significant as we are entering an era where its capabilities could start to replace human roles. Although it’s uncertain when AI will become a direct threat to jobs, it’s something that could happen as soon as six months or as far out as six years from now.
As AI progresses from being a simple online tool to something resembling General AI—which would potentially outsmart a significant portion of the population—it’s crucial for smaller firms like ours to integrate AI in ways that augment human capabilities rather than replace them. Large corporations will likely use AI to cut costs, focusing on reducing labor expenses. In contrast, our goal is to use AI to enhance our competitive edge while preserving the personal touch that our clients value.
The ethical implications of AI are also significant. For example, in fields like surgery or financial analysis, there could come a time when using AI is more ethical than relying on humans, given the potential for human error. These considerations will increasingly come into play as AI technologies evolve.
In practical terms, AI could enable our small team to operate with the efficiency of a much larger firm. This presents both opportunities and challenges, as it reshapes what a small team can achieve. Overall, navigating the integration of AI while maintaining our core values of personal service will be key to our strategy moving forward.
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