Business growth is a never-ending, and ever-changing objective of all business owners; financial planners included. While the lingering social effects of the pandemic and the challenges of upscaling during the Great Resignation/ Reshuffle can make the task-at-hand seem insurmountable, there are still tangible ways that you can steer the course of your enterprise. Here are a few tips to help grow your financial planning business.
1. Invest in Human Capital
Most advisors have built their business from nothing into their single most valuable asset. Finding talent can be a challenge these days, especially with unemployment settling into lows not seen in over 50 years. Data from FP Transition's Valuation Database has indicated that businesses with multiple professionals accumulate assets at a higher rate than sole practitioners. As your business matures, it is imperative to invest in the next generation of talent, to keep the engine running while you begin to enjoy the reward for what you’ve built.
2. Diversify Client Demographics
Similar to your employee demographics, your business benefits from a diversified client base. While your business today thrives off of your long-term clients who are at the peak of their savings, the future depends on building relationships with younger investors who have not yet maximized their earnings. Make room in your business for mid-career professionals, and include the heirs of your clients in your newsletters and events. Your next generation partners will reinforce these relationships, extending the business beyond just your career and solidly into the future.
3. Refresh Your Image
Everyone loves a good before and after! Put your best foot forward with a fresh coat of paint or even a new office location. Could your website use a makeover? How long has it been since you’ve updated your logo? Think about the first thing someone sees when visiting your business, whether physically or online. Clients connect the value of your service with the quality of your image. Whether you operate out of a home office or a suite in the financial district, giving your aesthetic a refresh will let your clients know you still have your head in the game.
4. Launch a New Marketing Strategy
Word of mouth is one of the most effective ways to build a loyal clientele, but are you truly inspiring your current clients to spread the word? How have your newest clients discovered your services? Do your research and dig deep into the data on your current client base. This will help you to establish a benchmark and better understand the motivation of your current customers. Through your efforts, will also become informed of where you could expand into new markets. Insight into the target market, understanding their needs will help you visualize how your business must grow and transition to meet those needs. Launch a new marketing strategy that prioritizes your client relationships and your presence in the community. An email campaign can be launched with minimal resources. Consider posting on a new social media platform; look beyond LinkedIn and Twitter. Get clients and other organizations excited about the work that you do for them, and they’re bound brag to their friends and share in their online social circles.
5. Improve Your Business Model with Technology
Managing client relationships effectively is key to delivering advice efficiently and expanding your reach so you can keep up with your best clients while handling new ones as your business grows. Many advisors we work with use Redtail, Salesforce, or Wealthbox. Leverage the best software for your clientele and your business to avoid letting a valuable connection slip through the cracks. Additionally, by implementing financial planning software such as eMoney or MoneyGuidePro and document processing tools like Docusign and Laserapp, you will enhance the client experience and improve the scalability of your advisory business.
6. Acquire Another Book of Business
Acquisition remains the fastest way to grow your business. But that isn’t the only benefit of this time-tested technique. In many cases acquisition is also a targeted and purposeful tactic to overcome the staffing issues encountered by most businesses today. Acquiring the all-stars already working at the firm you have selected in addition to the new book of business can aid your maturation on many different metrics. Use this growth strategy to your benefit! Are you ready for this pivotal step? Make sure you have the free cash flow to finance the down payment, but don’t stop there. A successful acquisition strategy also relies on achieving the growth goals listed above. Want to double your assets? Make sure your team and technology are positioned to expand rapidly. Want to retain the acquired book? Make sure your business image is fresh and welcoming to your newest clients.