Tagged ‘client experience‘

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.

Systematize Your Advisory Business or Your Clients Will

All advisory businesses have systems. They make the wheels of your practice turn. Some systems are formal, however, too many are informal. Informal systems can prevent your practice from running smoothly when it comes to day-to-day operations, closing sales, gaining prospects and ultimately selling your business when you are ready to retire. Avoid unnecessary business struggles by creating and maintaining formal systems that will grow and distinguish your advisory practice.

Running an FA business requires more than it did 20 years ago. In many practices the client is “running” the advisor, resulting in the day spent in a hectic-stop everything-emergency-mode. Consequently, systems go completely ignored and chaos prevails. KAR Consulting believes one of the best ways to stop operating this way is to start systematizing. Financial advisors must find an organized way to deal with the different aspects of their business. When the processes of your business are proven and organized, you also have a lower chance of making costly errors that are expensive and can hinder a practice’s overall performance.

A system is nothing more than a series of processes that will enable you to grow your business.

  1. Processes are comprised of one or more activities.
  2. Develop and structure day-to-day tasks so they are able to function themselves, or done by another person.
  3. Efficient systems create a better experience for your clients.
  4. Successful systems build trust and attract prospects.
  5. Top producing practices have all their systems integrated and working in sync.
  6. Your systems need to create an experience for prospects/ clients that inspire them for more.
  7. Support staff are well informed and easily adapt at implementing the processes you have identifies/created.

Systematize your practice or your clients will do it for you. You set the vision. You lead the team.  And you determine how to achieve it.