As students across the country head back to school, advisors should also educate themselves in areas that make a business successful. One area, practice management, is a source of pain for many advisors. To improve in this area, advisors should focus on organic growth, manage client expectations, create enterprise value in their practice and meet "the bottom line."
By tapping into a variety of resources, they can brush up on best practices to achieve increased client satisfaction and growth.
Define a Niche and Build an Organic Growth Plan
The best way to create value, manage client expectations and achieve organic growth is to identify and work within a niche and develop a growth plan. Identifying a niche allows advisors to pinpoint the needs of their clients and deliver the right services.
Some questions that advisors can ask include:
- Do I serve a certain segment of my clients particularly effectively? If so, how do I find more of that group?
- Are there clients whom I don't serve well or who are less economically attractive, and how do I find a solution for them?
- Is there a part of the client journey that I particularly enjoy?
Answering these questions allows advisors to serve the communities they can help most, and in turn, help their businesses flourish.
Once a niche is identified, advisors should envision their business and develop a growth plan to achieve it. Organic growth is a key differentiator of how top firms outperform their counterparts, according to Schwab's latest RIA Benchmarking study.
Still, many advisory firms struggle with organic growth. To overcome this hurdle and ensure success, advisors must use time and money wisely. Those who focus on networking and prospecting and combine that with a variable cost that supports their growth create the most enterprise value within their practices.
