Boutiques need to differentiate
Boutique planners need to develop a specialised business model in order to compete against "mass service providers", says Next Step Financial Strategies partner Neil White.
Next Step, which was formed following the merger of boutique practices Neil White Financial Services and Ellingworth Pearce and Associates, consists of a core financial planning business along with Next Step Business, which targets small and medium enterprises (SMEs).
Next Step Business focuses on formal business planning, valuation work and merger/equity transfer using a "whole suite of intellectual property that we use under licence", said White.
By targeting SMEs, Next Step can differentiate itself from the services offered by industry funds and other "mass service providers", said White.
"It's something where we have a high level of expertise. In the financial planning space we would have a better handle on the small business capital gains tax concessions than most," he said.
Under the Next Step model, White will generate future clients by working with legal firms and accounting firms, while his partner Roger Ellingworth will handle the "day-to-day" running of the financial planning business.
"The goal is that I will develop and implement the strategic direction of the business for the future, so that when I start to wind back my weekly hours it will be done in a way that won't have a negative impact on the client base," White said.
"I won't take on new clients in Next Step Financial. My role will be to work with key centres of influence such as legal firms and accounting firms through the Next Step Business," he said.
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