When a sector such as financial planning goes through enormous amounts of change it is not unusual to see different levels of business performance. The results of financial advice businesses after the past 5 years also shows up a wide range of performance.
As we have seen from a number of Industry consultants the range of business performance measured by EBIT profit performance varies enormously.
In the “Practice by the Numbers” paper released by Praemium in 2021 (using Business Health data), the average marketplace practice profitability was 28.2%.
Yet we know from Business Health benchmarking data that some top quartile practices are achieving double this profitability number or higher.
What sets these owners apart from their competitors?
At Futuro we find that the financial planners leading high performing financial advice businesses have some common personal skills.
It is interesting to see a breakdown of these behaviours in owners whose businesses are performing above average.
Leadership
- Strategic thinking & planning
- Have clear business goals documented
- Take personal accountability
- Be prepared to tackle difficult decisions
Adaptability
- Willingness to adjust to changes
- Responding quickly to expectations of clients & others
- Obtain feedback & take action if necessary
Financial Management
- Understand cost to serve base & value to clients
- Regularly reviewing service proposition & fee levels
- Monitoring business financials on a regular basis
Communication
- Sharing the vision & progress for the business with staff
- Listening skills and taking action
- Encouraging input from clients, staff and others & act on it
Delegation & Time Management
- Utilise personal time for high value tasks & delegate to others
- Play to others strengths
- Leverage advice staff time & adopt support model to best suit
If you were completing your own audit on your behaviours leading your financial planning business – how would you rate yourself?
At Futuro we love helping advisers improve their business outcomes. We are serious about helping our practices build their revenue and profitability.
Why not give us a call on (07) 3018 0400 or send an email to info@futuro.com.au to find out more?
How can we help you lead your business into the future?