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Managing Capacity & Control in Your Practice

One of the best pieces of advice we received from a business mentor was, “An important decision you’ll need to make, if you want to grow, is to release and let go. You’ll eventually need to manage your capacity and control of your business by working with the right clients.”

This mindset tends to trip-up far too many financial advisors, but it’s essential that you climb and conquer this mountain if you truly want to create your dream practice that is constantly growing. Intially, most financial advisors start their practices armed with an incredible sales talent that solves problems, provides value, and fills a need. That is, the essence of a successful practice. But something happens between the time you get your business cards and when your growth becomes impeded. Recognize that every financial advisory practice starts small. As sales grow, so do the demands for your time and attention. The stumbling block for many FAs occurs when they hold on too long to the notion that they service ANY and ALL clients. Do you find this true for you?

Capacity constraints exist when the number of client relationships you’ve successfully acquired and served over the years becomes unmanageable. You work harder, but simply can’t get everything done. This individual capacity limit is known as the Capacity Wall. Every advisor individual or team will eventually hit their wall as they reach the sheer limits of what each person can manage even utilizing technologies, efficiencies and support staff. At a basic level, you’ll need to do an exercise to translate your overall goals into weekly meeting goals for yourself and/or each team member. This will help you understand if the plan is feasible.

Control constraints exist when your client-service model is non-existent or has been violated over and over again. As a result, your clients run your business. The benefits of going through the Managing Capacity and Control are:

1. Gaining more control over the future of your practice

2. Increasing time to service top clients

3. Identifying clients you need to cultivate, delegate or divest.

We are encouraging advisors to stop and take time to analyze their own practice’s constraints. It’s one of the first discussion points we have with an FA client looking to grow their business.