Taking financial planning on the road

With remote access and flexible working hours becoming par for the course, Bruce Gingell considers the viability of the mobile financial planning business model.

Full lifestyles and packed working habits have combined to make time a valuable commodity today and while many people are happy to travel to an adviser’s office for financial planning advice, it may be difficult for others. Time-poor clients and those with limited mobility are less likely to wish to, or be able to visit an adviser’s premises.

Two obvious niche markets for mobile financial planning businesses are the elderly and the disabled.

Many advisers overlook these niches in the belief that the FUA (Funds Under Advice) will be small and the advice Centrelink-related. We need to move away from this thinking if we are to become widely regarded as genuine professionals operating via a fee-for-service model.

FOFA provides the perfect opportunity for us to demonstrate to the public that we can service client requirements in a genuine and professional manner and still operate a viable business servicing all levels of need.

At the opposite end of the spectrum rests another niche market: extremely time-poor, high-level executives who are reluctant to leave their offices, except to go home.

Client meeting venues

Convenient alternative venues for mobile financial advisers to meet clients outside of regulation business hours include:

• The client’s home;
• The client’s workplace;
• The office of one of the client’s other professional advisers; and
• Meeting rooms.

The client’s home

Seeing clients in their own home can present benefits not available at other locations. An astute adviser can take advantage of a more relaxed environment for the client.

Another benefit is that any relevant records or information is likely to be on hand and can be immediately sighted by the adviser.

However, an adviser needs to be prepared for distractions which can prolong a home meeting. Here are a few tips to overcome these potential problems:

• Provide a pre-visit guide for clients and highlight the necessity to keep the meeting on track
• Suggest a quiet corner of the home for the meeting
• Allow time for clients to introduce their family and, perhaps, show off some of their possessions.

The client’s workplace

Ask the client to arrange to meet in an area of their workplace – ideally a boardroom or private office – where they will not be interrupted by the phone or work colleagues.

Offices of other professionals

It is fair to say that some clients prefer contact with their adviser in a formal office situation, as they feel their personal life should remain private.

This is not a problem for the many financial planning businesses which maintain an office front as well as a mobile service.

Where a financial planning business is completely mobile, joint client meetings with the client’s accountant or solicitor make good sense. A joint meeting also offers you the potential to build a referral relationship with the client’s other professional advisers.

Meeting rooms

Local libraries, community centres and hotels usually have meeting rooms which you can hire for an hour or two at a nominal rate. Check with local councils regarding their provision of this facility and choose a meeting room which is in a convenient location for your client.

Establishing a mobile service

Professionalism

Professionalism results from the actions and presentation of the adviser and is not constrained by the workplace environment. There should be no reasons why an adviser operating a mobile service does not have consistent branding and be regarded by potential clients as a true professional.

This means:

• Personal presentation – look the part;
• Material – have professionally produced, consistent presentation material; and
• Advertising – have attractive, professionally produced advertising material, which may include your business name/logo on your vehicle, briefcase and give-aways.

Travel times

To make best use of your travel time:

• Research the directions together with the estimated time needed to get to an appointment venue – be aware of peak traffic times;
• Buy a good quality GPS for your car or smart phone (most smart phones have GPS, which is great when using public transport);
• Save phone calls (where possible) and make them during travel time (observing driving regulations, of course); and
• Try to make multiple appointments in the same area, or on the way/return trip.

Revenue model

Assuming that an adviser wishes to operate a strictly mobile business their revenue should be similar to that earned by an adviser who works in a full-time office.

Business overheads, however, can vary dramatically as many mobile advisers can work out of a virtual office, or their home, substantially reducing overheads.

On the other hand, operating costs such as fuel and fares and/or leasing and servicing vehicles will prove a greater expense to the business.

Mobile businesses which also have an office and/or support staff will obviously have greater overheads than those that do not.

Operating tools

Vehicles used in mobile businesses need to be comfortable, reliable and suitable to the task, and it is essential that they are equipped with Bluetooth and GPS.

Fuel consumption is also a major expense, making diesel or LPG-powered vehicles well worth consideration as cost-effective alternatives to the traditional petrol model.

Mobile phones, smart phones, laptops and tablets are also essential tools. In my opinion, smart phones are the most convenient and flexible although they have their limitations, especially for word processing applications.

Tablets such as the iPad provide the best overall compromise and will probably be the preferred communication tool in the future.

Before selecting a mobile phone carrier, be sure to do the background research to assist you in deciding which provider offers the best coverage in your area.

Robust and user-friendly software is a key tool for all financial planning businesses and is no less so for a mobile practice.

My preference is for an Internet-based service rather than one which sits on my own equipment.

This means I can access at various locations and also eliminates the worry about backup procedures for client data.

Since Internet-based service comes with IT support, it remains one less thing I have to worry about if server problems do develop. Also the compliance guys can look at things without me being there.

Pros and cons

Benefits include the ability to understand better a client’s situation, the opportunity to niche market to elderly/disabled clients and time-poor executives, and the flexibility to work outside both a formal office environment and traditional business hours.

Better communication with other professionals is also a built-in benefit of the mobile business.

Drawbacks include travel times and the need to strike a balance between time spent doing administrative tasks and time spent at client meetings.

Having adequate support via technology, systems and back-office staff will help streamline the day-to-day successful running of a mobile consultancy.

Being required to attend client meetings outside normal business hours can intrude on your personal time.

It is likely that financial planning business structures will evolve to meet future expectations, both from a legislative and client perspective.

Since the primary aim of financial planners is to establish a worthwhile, convenient and flexible range of service options, a mobile service can become a viable alternative.

Bruce Gingell is a financial adviser at Fiducian Financial Services.