Transitioning to Advisory is a Process. Not an Event.

Transitioning to an advisory model may seem overwhelming, but dedicating the time and making a step-by-step effort will result in steady progress. Financial advisors need to carefully evaluate their practice, identifying which clients are good candidates for a new type of engagement. While every client is unique, the process by which an FA engages clients does not have to be reinvented every time.

We advise FAs to seek out a program that is designed specifically to manage and guide them in the implementation of their advisory development process. This program should include:

  1. A Comprehensive Business Analysis: An advisor must receive a thorough assessment of their practice to understand the current state of the business from a qualitative and quantitative perspective, including its gaps and the strategy needed to help you meet the FAs goals.
  2. Business Remodeling and Re-Positioning of the Investment Offering: The crux of the success of any program lies in the FAs ability to articulate their new value proposition, to refine the client engagement and to restructure their team. The advisor must also develop strong messaging in communicating their new benefit offerings when faced with objections and pricing concerns from clients.
  3. A Price Model:  Given the commitment and importance most advisors have placed on building an advisory business, it’s surprising that there is significant unrealized revenue potential in many advisors’ businesses. It is realistic to build a business and pricing model that charges more than 1%. What can be difficult is raising the price once it’s set. The key to any pricing model is building the value into it and we will dive into WHAT value is important.
  4. A Marketing Plan: Financial advisors often struggle with their marketing and branding of themselves. With the trend on social medial  engagement, most advisors are paralyzed with HOW to use it. The process will take the time, attention and effort to “drill down” and determine a practice’s core strengths and align the marketing of the practice around those attributes.
  5. Execution and Implementation: All profitable businesses develop business plans to help them lay out goals, to identify resources needed to achieve them, and to provide an accountability mechanism to achieve goals. This is the last component of steps an FA must accomplish to optimize their business model and the transition.

Confidence to Move Forward and Make Changes

Transitioning from brokerage to a true advice-driven business model can be daunting for advisors because there are so many unknowns. Without a solid understanding of what is required and how to start, most advisors are frozen by uncertainty and their perceptions of the challenges posed by such a transition. The key to a successful transition is to have a solid plan. This requires a blend of both strategy—to guide the transformation of the practice— and tactics—to provide the road-map for the functional elements of the transition.

DO YOU HAVE THE CONFIDENCE TO MOVE FORWARD?

ENGAGE A KAR CONSULTING ACCOUNTABILTY PARTNER TODAY TO MAKE YOUR MOVE FORWARD.