Many advisors reach a point in their careers when the growth of their practices reaches a plateau. Even though it continues to be profitable, it is no longer growing.
Perhaps you have plugged away for years to achieve certain asset or revenue targets but just can’t seem to get to the next level. Or it may simply seem so much tougher to acquire new assets to grow your practice.
Getting past that barrier, suggests George Hartman, CEO of Toronto-based Market Logics Inc., comes down to the question: “Where do I want to go from here?”
Adds Prem Malik, chartered accountant and financial advisor with Queensbury Securities Inc. in Toronto: “Each advisor is different. Some might be comfortable being on a plateau.”
But most advisors want to take their businesses to the next level, says Raymond Yates, financial advisor and senior partner with Save Right Financial Inc. “Their ultimate goal is to achieve sustainable growth,” Yates says. “That’s the challenge of running a successful practice.”
Here are some ways you can to help your business break through the growth barrier:
1. Revisit your vision
“It’s always about the vision for your practice,” says Hartman. And your vision is tied to your growth aspirations. To stay motivated, be sure you have clear priorities and targets.
You must have a strategic plan to guide you along the way.
Your strategic plan should help you determine where you are today, where you want to go, and how you are going to get there.
2. Re-examine what you do well
You got to where you are today not by chance, Hartman says, but by doing certain things well. “Look at the things you do well and build on them,” he says.
“Fix areas that need improvement,” Malik says. “If you continue to do things you are good at, your business will flourish.”
Also look at what your competitors are doing, Yates says, and introduce fresh ideas to get the attention of existing and potential clients.
3. Reposition your practice
It might be time to introduce new strategies, methodologies and branding, Hartman suggests.
This may imply overhauling or adjusting the operations of your practice to keep up with changes in the environment.
“Revisit your marketing plan and your value proposition,” says Yates.
Perhaps what got your practice this far just doesn’t cut it anymore, Yates adds. “Don’t be afraid to make changes, if necessary,” he adds, “such as adding new revenue streams.”
4. Re-allocate resources
If, for instance you are doing all the marketing, then you should re-allocate roles within your team, Hartman says.
“Some clients may consume a lot of your time,” Hartman says, “holding you back from building your practice.” If that is the case, he says, segment your client base and re-allocate certain clients to other team members.
5. Acquire a book of business
Often, organic growth can be tough in a competitive environment. Instead, try growth by acquisition.
Yates suggests that you buy books of business to fuel your growth. “You would be able to grow,” he says, “by integrating new books of business into your existing practice.”