Scott Charlton | Business coach, author ... - Strategy Paper€¦ · • Consumers of financial planning services have considerably different needs. By offering yourself to be a jack

10 expectations of your financial planning firm of the future

©ScottCharlton Page1 Version2,October2015.

10expectationsforyourfinancialplanningfirmofthefutureByScottCharltonFCA

Executivesummary

Forfinancialplanningfirms,theroadaheadisbothexcitingandchallenging.Inthispaperthereare10predictionsforforward-thinkingpracticestoincorporateintotheirfutureplans.Thepaperalsoprovidesguidelinesandsuggestionstoimplementthesepredictions.

Introduction

Thedaytodaychallengeofrunningafinancialplanningfirmcanbeallconsuming.However,withoutoccasionally"raisingtheperiscope"tolookatwhatishappeningandwherethefirmshouldbegoing,plannersrisklosingsightofimportanttrendsandfailingtooptimisetheirpotential.

Thepurposeofthispaperistoprovokethoughtandreflectionamongstplannerswhoruntheirownpractice.Byallmeansdisagreewiththeseexpectations.Irrespective,takingtimeouttoconsidertheimportantstrategicissuesthatyouneedtoaddresswillimproveyourfocusandhelpyoutakeadvantageofemergingopportunities.Ultimatelythisprocesswillhelptoensurethatyourfirmthrivesintheareaswhereyouhavechosentobeexcellent.

1. Clientswillhaveconsiderablydifferentneedsandexpectations

Myprediction:Generic,one-size-fits-allfinancialplanningfirmsaregoingtogeteatenforbreakfast.

Herearesomereasonswhy–

• Consumersoffinancialplanningserviceshaveconsiderablydifferentneeds.Byofferingyourselftobeajackofalltradesyouruntheriskofbeingsecondbestineveryclientcategory.

• Lowtouch,lowrelationshipclientswillendupwithlowcost,highvolumebusinessmodels.Readyexamplesareinstitutionbasedplannerswhoarefloggingproprietaryproductsandindustrysuperannuationfunds.Eventhesemodelswillcomeunderthreat,fromtherobo-advisers.

• Clientswithspecificneedswillgravitatetowardsfirmsthatspecialiseintheseareas.Byspecialising,suchfirmsgethighlyefficientinprovidingtheirservicesandareabletokeepbuildingexpertiseintheirchosenarea.

• AgenericFUMbasedfeemodeldoesnotsuiteveryclient.Accumulatorsandretireeswhittlingdowntheirsavingsaretwosuchexampleswherethetraditionalmodeldoesn’tworkparticularlywell.


2. Considerspecialisation

Followingonfromtheabove,a“takeonallcomers”approachisvulnerabletoacompetitorwhohasawellthoughtoutvaluepropositionwhichcatersforaparticularclientniche.

Notonlydoesspecialisationlenditselftogeneratingsuperiorprofitability,itprovidesmuchgreaterscopetomarketthefirm.Ifallyouaredoingisthesameaseveryoneelse,yourmarketingmessagewillbemediocreatbest–“Wehavethesamequalificationsaseveryoneelseandyes,weprovideinvestmentadviceandpersonalcaretoo”.

That'snottosayhoweveryouwillnecessarilyturnawayclientswhichdon’tsuityourpreferredclientprofile.Youridealclientcouldpotentiallyhaveageingparentswhoneedtobeincorporatedintoestateplanningandassetprotectionstrategies.Thatsameclientmayalsohaveadultchildrenlookingforguidance.Equally,practitionersinruralcommunitiesareunderstandablyapprehensiveaboutdiminishingtheirgoodwillbyturningawayreferralsfromclients.

Insuchsituations,itmakesgoodbusinesssensetohaveameanstohandletheseclientswithout"thetailwaggingthedog".Youhavelikelyseensituationswhereimportantprojectsforyourbestclientsareputonholdtoattendtocrises,concernsandissuesrelatingtodemandinglowvalueclients.Whetheryoutacklethisthroughefficientsystems,referraltootherpractitionersorjudicioususeofoutsourcingisuptoyou.Theoverallimperativeistokeepafirmfocusonthoseclientswhereyoucanaddthemostvalue.

3. Abroaderskillsbase….andamuchbiggermindset

Thefoundationforoptimalresultsinprofessionalservicesfirmsisanorganisationwithawell-consideredorganisationstructureandappropriatelytalentedpeopleinallpositions.Yetmanyfinancialplanningfirmsarestillrunwitha“cottageindustry”mentalityandthe“biscuittin”measureofbusinesssuccess1.“Oldschool”rulesofthumbandlimitingbeliefscontinuetolinger,despitecompellingevidencetothecontrary–refertoAppendixAforadiscussiononthisissue.

Similarly,eveninfirmswhicharedesperatetogrowrevenue,thereisoftennoin-housemarketingcapabilityorprovisioninthefinancialbudgetformarketingexpenses.

Thefirmofthefutureontheotherhandwillinvestinmarketing,salesandmanagementexpertise.

Notethatthisdoesn'tnecessarilymeanthatalltheseresourcesneedtobepackedinunderyourroof.Withtoday'sconnectivityyoucanaccessthesecapabilitiesasyouneedthem.Somereadyexamples-

• Referralrelationshipswithlike-mindedprofessionalsspecialisingincomplementaryareas-accountants,financebrokers,generalinsurancebrokers,lawyersetc.SomeoftheserelationshipswillbelocalwhilstotherswillentailexpertisewhichisonlytobefoundinCBDofficetowers

• Useofcontractorswithspecificexpertise-paraplanners,consultantsetc.-whocanbeengagedforstandardpricingandfixedfeeassignments

1Ifthereismoneyinthebank,wemustbedoingOK.


• Strategicallianceswithorganisationsdedicatedtoprovidingresourcesandsupportinareaswhichareimportanttoyourvaluepropositionsuchasyourdealergroup,amarketingconsultantand/orabusinesscoachingorganisation.

Ratherthanapproachingsucharrangementsonanadhocbasis,systematicallybuildingtheseaspectsintoyourfirmwillhelptoprovideapowerfulvaluepropositionandanoutstandingmarketingmessage.

4. Licenseeswon’thaveallyouranswers

Ifyouarelookingforthe“perfectlicensee”,whereallofyourleadgeneration,compliance,IT,andprofessionaldevelopmentneedsaredeliveredtoyouonasilverplatter,youlikelyshouldbeworkingforabankorcreditunion.Otherwise,youmustaccepttherealitythattherewillbegapsbetweenwhatyourlicenseeprovidesandwhatyourequire.

Let’stakebusinessgrowthasaprimeexample.Superficially,licenseesarealignedingrowingyourfirm’stoplinerevenueandmostwillprovideawell-meaningrelationshipmanagertoprovidesomeassistancetodothis.YetasaprofessionalbusinesscoachIknowthatfinancialplanningfirmsseekinghighperformanceoutcomeswillbenefitfromspecialistassistancewhichisbeyondtheskillsetandcapacityofdealergroupstoprovide.Firmsjoiningourgroupcoachingprogramorattendingourspecialskillsworkshops(e.g.accountingreferralrelationships)getaccesstoknowledgenottypicallyfoundinlicensees.Adedicatedbusinesscoachwhohelpsyoutoformulateideas,nurturesyourdesiretospecialise,tracksyournumbersandholdsyouaccountableforcompletingprojectsistypicallyfoundinaspecialistcoachingcompany,notalicensee.Further,beingpartofapeernetworkwhereonecanmeetregularlytoshareexperiencesandtapintoacollectiveexpertisewillbeinvaluable.Forthosesoinclined,extendingthesepeerinteractionstomutualaccountabilityforcompletionofprojectsandattainmentofobjectiveswillalsoboostyouroutcomes.

Sotooyouwillfindexamplesinotherareas–

• SpecialistlearningandqualificationsthroughorganisationssuchastheSelfManagedSuperFundAssociation2;

• IndustryassociationtrainingsuchastheAFAroadshowsandannualconference• Engagingspecialistmarketingskills–referbelow

Ideally,youwillfinda“bestofbreed”approach,whereyoucanfindexternalassistancewhichcomplementswhatyourlicenseeprovidesintheareaswhereyouneedhelp.Awordtothewisehowever–youmusttakeprimaryresponsibilitytogettheassistancerequired.Afterall,nooneelseknowsyourbusinessobjectivesbetter!

2FormerlySPAA.


5. Movingawayfromcommissionsand%ageofFUM,atleastinpart

Increasingly,asonedevelopsexperienceandexpertise,therealisationdawnsthatincertainsituationsthevaluewhichisbeingimpartedtoclientscannotadequatelybecapturedbytraditionalfinancialplanningrevenuemodels.

Inmanyinstancestheadvicethatyousharewithclientstosolvetheirproblemsandkeepthemontracktoachievetheirobjectiveswillnotdirectlyrelatetoaproductsolution.Whilstadiscussiononvaluepricingisbeyondthescopeofthispaper,astutefinancialplanningfirmswillatleastbesettingtheexpectationwithclientsthatsomeassignmentswillbeinvoicedseparatelytoannualretainerarrangements.

Forthosewhoprovidepersonalriskinsuranceservices,itmustbesaidthatthecommissionbasedsystemisdeeplyflawed.Adetailedexplorationofthoseflawsandadiscussiononmovingawayfromthissystemisalsobeyondthescopeofthispaper.However,Ithinkit’sfairtosaythecommissionsystemcontinuesonlyasaby-productofhistory–itwouldnotbedesignedthiswayifthesystemwasbeingsetuptoday!Asanadviser,youarenotobligedtosimplyacceptthestatusquo.Youcanalterthemodeltobettermatchthevalueyouprovideindifferentaspectsoftheservice.

Sotoo,aremunerationsystembasedsolelyonFUMisproblematic.Atbest%ageofFUMisanapproximation,bestsuitedtoaclientwhoseentirewealthisinmanagedfunds.Inreality,clientsholdotherassetclassesandhavefinancialissuesforwhichtheyrequireassistance.ForanadvisertohaveaFUM-basedmindsetalmostcertainlyisnotpayingadequateattentiontothepossibilityofotherassignments,suchasintergenerationalwealthplanning,assetprotection,debtmanagementandpersonalcashflowmanagement.Yetalloftheseareasofferprofoundrevenuegeneratingopportunitiesinareasofgreatvaluetoclients.

6. Professionalmanagement,evenforsmallfirms

Astutepractitionerswillrecognisethattheirtimeisbestinvestedwithclientsratherthanflailingawayatmanagementtasksandadministration.It'sextremelyhardtodobothmanagingandadvising.It'snexttoimpossibletobethebestatboth.Yetmanypersistinjugglingmanagementtasksinbetweenappointments.

LargerfirmsareabletohireatalentedGMbutthiscanbeaconfrontingissueforsmallfirmsi.e.howtojustifytheexpenseofprofessionalmanagementandbecomfortablewithdelegatingaspectsofcontrolthatthefounderhasalwaysexercised.

Agoodplacetostartisthefirm’sorganisationchart,clearlydefiningrolesthatneedtobefilledinthebusiness,includingthemajormanagementtasks.Youmightbesurprisedhowmuchcanbedelegatedwithgoodroledescriptions,proceduremanualsandtraining.

Youmayalsocaretoconsiderappointingamanageronaparttimebasis.Thereisplentyofexperiencedtalentaroundifyoulookcloselyenough.ForexampleIrecentlyheardofaretiredbankmanagerfillingsucharoleinafinancialplanningfirm.OtherfirmsIknowhaveengagedanexperiencedpracticemanageronaparttimebasistoworkondevelopmentalprojects.


Regardlessofhowyoutackleimprovingyourmanagementfunction,theoptimalsolutionisunlikelytobetoughingmattersoutuntilthefirmhasmagicallygrowntobemuchlargerandmoreprofitable.Rather,greatmanagementisakeycomponentingettingyoutothisoutcome.

Smallpracticesalsofaceachallengeintermsoftheirgovernance.Forexample,whokeepsthesoleproprietoraccountable?Howtoworkthroughissuesaboutwhichtwoequalbusinesspartnersarediametricallyopposed?Whatifthethreepartnersinapracticearesuchgoodmatesthattheydon’ttakeoneanothertotaskfornon-performance?

Insuchsituations,anexternalpartycanbringarangeofdesirablequalitiestothetable.Theroleswillvaryfromcasetocase-mentor,coachand/orexternalboardmember.Carefuldevelopmentoftheroledescription(s)willpaydividendshere,togetherwithastuteselectionofanappropriatepersontofilleachposition.

Manypractitionersalsofindgreatbenefitintappingintothesupportandinputfromcolleagues.Thiscouldbeintheformofinformalnetworksandpeerreviewprograms.Howeverifaccountabilityisdesired,adegreeofstructure,suchasaformalcoachingprogram,willoftenyieldoutstandingresults(providedallparticipantsplaytheirpart).

7. There is a need to get much, much better with your marketing, particularly lead generation

Virtuallyallprofessionalservicesfirmshaveengagedtheservicesofexternalprovidersforassistancewiththebrandingaspectsoftheirmarketing.Typicallythisincludesthedesignoflogo,letterhead,businesscards,websiteandsignage.Thisislargelyconsideredtobeanoccasional"Thankgoodnessthat’sover"engagement.Thetroubleisthatsuchmarketingbyitselfdoesnotbringinclients.

Mostfinancialplannersbackthemselvestoconvertaprospecttoaclientwhenthatpersonarrivesintheoffice.Yetthesameplannersfailtoimplementamarketingplanwhichwillbringsufficientprospectstothedoor.Infact,tobebrutallyhonest,manyplanners–

• Havereceivednotraininginmarketing• Devoteverylittletimeand$budgettomarketing• Trylotsofstrategiesbutfailtoimplementanyoneofthemeffectivelybeforemovingontothe

nextone• Havenotconsideredwhattypeofmarketingwouldbemostappropriatetoattracttheirtarget

market• Aresecretlyhopingthatsomeoneelsewilltakecareofthisissuesoalltheyhavetodoisseethe

newclients

Thegoodnewsisthatitactuallyisnotthathardtobemuchbetteratmarketingthanmostofyourcompetitors.Elementsofasuccessfulmarketingprogramwillmostlikelyinclude–

ü Obtainingabasicunderstandingofmarketingandwhatitentails,forexample,throughSlipstreamCoaching’sMarketingGuide.

ü Becomingveryclearonwhoyourtargetclientisandthevalueyouprovidetosuchclients


ü Appointingaparttimemarketingassistant-someonewhoseroleitistoensurethatbasicmarketingactivitiesareattendedtoeachweek.Thisrolewilllikelyincludemaintainingthefirm’sprospectdatabase,sendingoutnewslettersandchasingupprofessionalteammembersfornewsletterarticlesetc.Therolecanalsoinvolveorganisingclientseminars,boardroombriefingsandspeakingengagements.

ü Engagingastrategicmarketingconsultantforhigherlevelthinking–someonewhocanbeengagedasrequiredorevenbetter,onaretainerarrangementforanagreedsetofservices.Thisappointmentworksextremelywellinconjunctionwiththeparttimemarketingassistantreferredtoabove.TheAssistantwillberesponsibleforimplementingtheinitiativesagreedwiththeStrategist.Theamountoftimerequiredbythefinancialplannerinthisprocessisminimalandyettheresultscanbeprofound.

Suchanarrangementensuresthatsomethingiscontinuallyhappeningtoattractthetypeandnumberofthetargetclientsthatyouareseeking.

8. Youwillrecruitandgrowyourownadvisingtalent

Therecruitmentprocessoffinancialplanningfirmswhenitcomestonewadvisersreflectscottageindustrythinking.Thisusuallyentailsdippingintotheveryshallowpoolofcandidatesconsistingoffrustratedbankplanners,BDM’sseekingacareerchangeandcast-offswhodidn’tfitintotheirlastjob(s).Ontopofthisinauspiciousbeginning,manyfirmsoverlayunrealisticexpectationsregardingtheneedforaclientbaseandlargelyperformance-linkedremuneration.It’slittlewonderthatsuchappointmentshavesuchalowsuccessrate!

Inmorematureprofessionssuchaslawandaccounting,nurturingthenextgenerationispartofthedeal.Eveninmydaysasasolepractitioner3,Irecruitedundergraduateswhoservedmyfirmandmyclientswell.Yes,takingthisapproachentailsmentoring,trainingandarangeofemployerresponsibilities.However,thebenefitsareconsiderable.Forstarters,youdon’ttakeonotherpeople’scast-offs–insteadyougettochoosesomeonewithhighintelligence,greatattitude,goodITskillsandrecentqualifications.TheseteammembersaretheninductedintoyourprocessesandculturefromDayOne,progressivelybecomingmorecapableastheygainexperience.

Byconsistentlyrecruitingatthegraduate/undergraduatelevel,youwill“growyourown”advisoryworkforce,insulatingyourfirmfromhavingtorevertbacktotheexternalpooldescribedabove.Followingtheprovenprocesseswithrespecttoclientinteractionthatyouwilltrainthemon,theseteammemberswillespousethesamevaluesandachievesimilaroutcomestomoreexperiencedteammembers.Intime,theywillalsoformthenaturalsuccessionplanforthefounders.

3ThisbecamemoresystematicandonalargerscaleafterIhadmergedmyfirmwiththatoftwootherpractitioners.


9. Accountantsareincreasinglygoingtobepartofthefinancialplanningpicture

It’salwaysbeenthecasethataccountantsactasthe“Gatekeeper”tomanyclientsandthiswillcontinue.Whereanaccountantisaprimaryadvisertoyourtargetclients,theywillhavealargesayinthesuccessyouachieve.Readyexampleswherethereisusuallyhighaccountantinfluenceincludebusinessowners,highnetworthindividualsandcomplexfamilygroups.

Ontopofthis,accountantsarebeingdrawnintothefinancialservicesworld,courtesyoftheFOFArulesapplyingfrom1July2016.MypredictionisthatanyfirmwhichissignificantlyinvolvedwithSMSFadministrationwillelectforoneormoreofitsaccountantstobelicensed.Thiswillseeasignificantnumberofaccountantsbecomingauthorised,suchthattherewillbeanoverlapinthestrategicaspectsofadvicewhichhavebeentheexclusivedomainofplanners.

Howthiswillplayoutinpracticewillvaryconsiderablyfromcasetocase.However,herearesomepredictionswhichmayprovehelpful–

• Plannersattemptingtocutoutaccountantswhohavestrongrelationshipswiththeirclientsinvariablycomeoffsecondbest.

• Plannerswhopositionthemselvesasbusinesspartnerstoaccountants,pickingupthatpartofthefinancialservicesadvicethataccountantsdon’twanttoprovideandhelpfullysteeringaccountantstoappropriatelicensingsolutionswillberewardedwithdeeprelationships.

• Manyaccountantswhogetlicensedwillbeveryapprehensiveaboutpreparingstatementsofadvice.Indeed,someoftheseaccountantsmaychoosenottocontinuewiththeirlicenseafterthefirst12months.

• Smalleraccountingfirmswilllikelychoosenottobelicensed,therebyenhancingthecaseforthemtoworkcloselywithalignedfinancialplanners.

• Aboveall,thoseplannerswhochoosetodevelopworkingwithaccountantsasacorecompetencewillberichlyrewardedinthisnewera.

10. Refresh,rechargeandreinventforabetter,longerandmoresatisfyingcareer

Alltoofrequently,thedemandingexistenceofbeingapractitionerreducesone'sprofessionalhorizonsandresultsinanoutcomewhichequatesto"Iguessthisisasgoodasitgets".Andthiswillbetheoutcomeunlessyoutakecharge.Longhoursanddealingwithmultipleclientengagementsmeansthatthereisseldomtimetocelebratewinsbeforechargingontothenextdeadline.Holidayscanbeinfrequentandneverlongenoughtoenjoythetranquilitywhichonlycomesfromanextendedperiodoutsidetheprofessionalpressurecooker.

Justasmoreexpectantclientswillbepartofyourongoingprofessionalchallenge,sotooyoushouldexpectmorefromyourcareer.Becauseyourtimeinpracticewillrunformanyyears,itmakessensetoplanamajor"timeout"foreverydecade.Forsome,thesesabbaticaleventswillbethecatalysttotravel,particularlywithfamily.Thiscouldalsoincludeperiodsfortakingonfurtherqualifications,astudytourorwritingabookinone'sareaofprofessionalexpertise.


Ofcourse,yourfirmneedstobesufficientlyprofitableforthistobepractical–allthemorereasontotakeactionifyourfinancialresultsarenotwhatyouwantthemtobe.

Indaysgoneby,"makingPartner"wastheculminationofone'scareer,signifyingthatthiswasthepinnacleatwhichonewasexpectedtoremainforthebalanceoftheirworkinglife.However,ratherthanviewyourselfassuchanautomaton,itisreasonabletoexpectthatyourprofessionalinterestswillevolveanddevelop.Itthereforemakessensetoprovideyourselfwiththeexpectationandfreedomtoexploreotherareasofprofessionalinterest.

Forsomethiswillmeanspecialisingwithintheirchosenfields.Otherswillfindbusinessdevelopment,suchasnurturingreferralrelationships,tobeagreatuseoftheirexperience.Certainly,itisusualforpractitionerstobecomemuchmorerelationshiporientatedandhavemorevaluetooffertheirclientswithrespecttoinsightsfromtheirexperience,leavingthemoretechnicalaspectsofengagementtokeenyoungmembersoftheirteam.4

Action

Nowit’syourturn.There’snopointreadingthispaperwithoutactingonthepointsthatresonated.

Here’salistofsuggestedactions.

o Gobackthroughthepaperandhighlightthepointsofhighestpriorityo Sharethepaperwithcolleaguesandgetthemtolikewiseidentifypriorityitemso Developanactionplan,completewithdates.Thenmarkouttimeinyourdiarytogiveeffectto

yourplanso DiscusshowtheseexpectationswillimpactyoubusinesswithourDirectorofBusiness

Development.

Youwillfindthatdecisivestepsnowwillleadtosignificantoutcomesinthefuture.

Withbestwishesforsuccessintheseendeavours.

ScottCharlton

AbouttheauthorScottCharltonisacharteredaccountantwhospecialisesincoachingaccountingandfinancialplanningfirms.Scottistheauthorofthreebooksrelevanttoaccountantsinpractice,YourProfessionalHeadspace(2011);PartneringwithFinancialPlanners(2012)andPartneringwithAccountants(2014).ScottisalsoDirectorofCoachingatSlipstreamCoaching,acompanydedicatedtoassistingaccountingandfinancialplanningfirmsachievetheirpotential.Scottcanbecontactedviaemailscott@slipstreamcoaching.com.auandon0409870330. 4Forafurtherexplorationoftheseissues,referto“YourProfessionalHeadspace”-http://www.scottcharlton.com.au/professional_headspace.php


AppendixA.Challengingsometraditionalthinkinginfinancialplanning

Traditionalthinking Notsayingtheoldviewsareoutrightwrong,buthereissomefoodforthought…

Financialplanningbusinessesshouldbevaluedonthebasisofamultipleofrecurringrevenue.

Buyersareincreasinglylookingatthedemographicsoftheclientbaseandwilllessinclinedtopayahighmultipleforanagingclientele

AnincreasingnumberofpracticesarebeingboughtandsoldbaseduponamultipleofEBIT.

Whenitcomestosellingmybusiness,I’llget3timesRR,maybeevenmoreunderaBOLAarrangement

Refercommentsabove.

Buyerswillincreasinglystratifytheclientbaseandpaydifferent(i.e.lower)multiplesforvariousclientcategories

AndifyouarepinningyourretirementhopesonsecuringaBOLAarrangement…..Goodluck!

Lifeinsuranceisnotbought.Itmustbesold.

Really?Ifthismindsetwascorrect,whydowehaveachronicunderinsuranceproblem?

Clientswon’tvalueindependentlifeinsuranceadviceandtheonlywayIcangetpaidistoprovidelifeinsuranceisviacommission.

Thereisanamazinginconsistencyshownbyadviserswhoproudlyexplaintotheirclienthowinvestmentrelatedserviceisindependentofprovidersandyetprovideinsuranceservicesunderacommissionmodel.

Isthemainreasonforstillusingacommissionmodelthatyouhaven’tdevotedsufficienttimetofiguringoutabetteralternative?Ifso,theincomingruleslimitingupfrontinsurancerevenueandincreasingthechanceofwritebacksmayprovideincentivetogivethisareamoreattention!

ThewaytobuildmybusinessistokeepaccumulatingFUM

Whatotheropportunitiesareyoumissingwiththisfocus?

HaveyouconsideredclientcategorieswhereFUMis(i)initiallysmallbuttheclientisabletopayforadviceor(ii)averysmallsubsetoftheclient’sfinancialaffairs?

ClientscometousandsubsequentlyremainwiththeFirmbaseduponourinvestmentexpertise

Closelyalignedwiththe(limitations)discussedabove.

Somefinancialplanningfirmsarehavingsuccesswithre-orientatingtheirvaluepropositionawayfrominvestmentreturns,tohelpingclientsidentifyandachievetheirfinancialgoals.

“I’lltakeonanyclientthatcomesonboard.Eveniftheirbusinessissmall,theymightbeabletorefersomeonebigand/ortheymaygrowintosomethingbiggerthemselves.”

Invariablysuchanapproachcreatesa“busy-ness”withinafirmwhich,whilstnotoptimallyprofitable,precludesadequateconsiderationbeingpaidtohowtowinbiggerclients.

Notwithstandingexceptions,itshouldbenotedthatmostclientsreferclientswithsimilarcharacteristics.Themorelikelywaytobereferredbetterclientsistonurtureyourbestclients,notrunningaroundtryingtosuper-pleaseminorones.

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Scott Charlton | Business coach, author ... - Strategy Paper€¦ · • Consumers of financial planning services have considerably different needs. By offering yourself to be a jack