Grant Hicks, CIM
Increasing revenue
without increasing your number of clients for financial advisors
How does a team of successful advisors scale their business, increase equity
and value, to make it more efficient? In other words, how do you scale your
practice from 75 million to 150 million to 300 million or more? Or a 300
million practice to 500 million+. No matter what the numbers are, or revenue is
you know what to do but do you know how to do it?
Money is recoverable time isn’t
You know you can go and earn more money as a successful advisor, but you can’t
go and earn more time? Capacity is the number one issue for successful
advisors, so how are you managing your capacity? In the book on practice
management, by Mark Tibergien and Rebecca Pomering, (Practice Made (More)
Perfect: Transforming a Financial Advisory Practice Into a Business (Bloomberg
Press) they show the difference in time management between average and elite
financial advisors. What if you could find 200 more hours in a year, what would
you do with the extra time? This is the difference between teams that do
in-house portfolio management and teams that don’t. The average advisor spends
24% of the time on portfolio management and research versus 12% or less when
they have either outsourced it or built it in-house, where they control the
cost and revenue and build more equity. I see successful wealth managers
generally increasing efficiency, capturing more ideal clients and assets, and
improving client outcomes consistently. A Portfolio manager process or a TAMP
process, turnkey asset management process, either way, how much time are you
spending on your process? How can you get 200 more hours in the next 12 months,
you know what to do, how will you do it?
Ideal families
The financial industry drives me crazy sometimes. Everyone talks about ideal
clients. If the language in the industry changes from clients our households to
ideal families, then the math changes dramatically and so does the revenue. An
ideal client or household may have a million dollars so the revenue at a simple
1% is $10,000 plus additional services such as insurance planning banking etc.
If you target ideal families, not just parents and grandparents, but other
family members such as parents brothers and sisters, and other relatives, you
go from $10,000 for an ideal client to $20 $30 , $40 or $50,000 or more
revenue. 50 ideal families at $50,000 per ideal family is an ideal business
that generates $2.5 million or more. You have a team of 4 of those types of
advisors and you have a 10 million-plus revenue firm. What is the value of that
firm if you transitioned to retirement or sold it? Start thinking differently.
During the pandemic, people moved closer to family members, so referrals to
other family members came easy to financial advisors. Why not capitalize and
look at families linear as well as horizontal. Wealthy business owners always
have family involved in their businesses. Make a list of your ideal families
and how you will capture more!
Replace costly inefficient staff with technology and tech-savvy staff
The biggest thing on financial CEO’s minds these days is when staff comes back
to work what will the model be, and how will the culture be? Let’s face it, the
pandemic has forced the financial industry to adapt to technology. It is a
tech-savvy business, do you have non-tech-savvy staff who resist change? The
future-ready financial advisor no longer has an admin assistant, they have a
technology assistant or I refer to as a Robo-assistant, handling everything in
the digital world, implementing technology practice management processes with
ease. They bring the practice forward and are always looking for fresh ideas on
how to scale the practice. Some examples of Robo-assistants I have worked with
have blown me away in their processes in running their practice. They have
shown me technology that is super efficient and changed how I work with
assistants in consulting to financial advisors and teams. Do you have a
technology assistant or administration assistant?
Acquire more ideal families
What are the two or three marketing processes embedded in your practice to find
and acquire more ideal families? Don’t have these processes that you can turn
on or off at any time, hmmm are you winging it when it comes to marketing?
Marketing for financial advisors is about three things, process, process
process. The subject of a future blog article. Hint, it starts with delivering
more value. How are you going to deliver more value to ideal families in the
next 12 months? The more value you give or deliver, the more valuable you
become.
Take more time off
We all know you make more money by taking more time off. Whenever I hear
advisors say to me, I have difficulty taking time off, I think of how much
growth they are missing by not taking time off. Every successful business book
you have ever read endorses this, yet some choose to ignore this sage advice.
Get rid of the guilt or reason why and plan it. Your team will always be more
productive when you are away. If the team isn’t more productive when you are
away, this is the first thing you need to change on your way to increasing
revenue.
One final question?
You know what to do to scale your business. How are you going to do it? I
highly encourage you to connect with your coach, consultant, mentor, or manager
and schedule a discussion of how you are going to do it. “Over every mountain,
there is a path, although it may not be seen from the valley. Theodore Roethke
How about your goals for your practice in 2021? Our Practice management
checklist or fee audit checklist
While each financial advisor's practice may have a different approach, advisors
need to
understand where their practice needs help, and will they get the right help
for the right part of their practice. What areas does your practice need help
with? Get a copy of our updated 21- page “Comprehensive Practice Management
Strategies checklist” by going to our website https://www.advisorpracticemanagement.com/about-us or
clicking here https://practicemanagement.getresponsepages.com/
Fee audit checklist for ideal prospects, click here https://feeaudit.getresponsepages.com/
Call me
Contact us to help get clarity around your goals on paper, and having the goals
conversation by contacting grant at grant@ghicks.com
or click on the link to set up no-obligation 20-minute discussion https://my.timetrade.com/book/JMTNJ regardless if we work
together, let’s have a chat and listen to your biggest practice management
concerns to help you get clarity around your future business.
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