Downturn an opportunity to refresh financial planning practices
A financial planning practice principal believes the present downturn is a perfect time to refresh a business.
“With good quality staff coming on the market and office rents falling, now is the time to look at your business again,” Haywood Financial Management principal Scott Haywood said.
“There are candidates in the marketplace who want to stay in the industry, but are out of work.”
At the beginning of this year, Haywood sat down with his staff and talked about their goals, attitude to financial planning and dreams.
The practice had three advisers and four administration staff.
“What we found was a younger employee wanted to work in child care, so we have assisted her in finding a course and she now works five day fortnights,” he said.
“The other administration staff members — except for our paraplanner — have moved to one unpaid day per month.”
Haywood said this had freed up enough cash flow to re-organise staffing levels at the Melbourne-based practice.
“This increase in cash flow has allowed us to employ a PS 146 compliant administration person who was unemployed,” he said.
“We have also taken on a university student doing a double degree and studying financial planning one day a week.”
However, the biggest change has been the recruitment of another planner with 12 years experience.
“Danielle Austin was looking for the right firm and after an exhaustive process selected us,” Haywood said.
“She has been working with the major banks, stock brokers and boutique firms and has gained a wealth of experience in corporate and small to medium businesses.”
He said employing Haywood would enable the practice to introduce lifestyle planning and counselling for those clients who need it.
“Danielle enjoys working with clients who want to achieve maximum financial potential through ‘lifestyle planning’,” Haywood said.
“Her clients come from very diverse backgrounds and have very diverse, often challenging circumstances.”
This will include advising on superannuation, wealth creation and risk.
Haywood said the other move the practice is making to refresh the business involves moving offices.
“I think now is a great time to look at upgrading our office as we have been here for five years,” he said.
“With tenancy vacancies everywhere, we are looking long-term and positioned for growth.”
He said with business being quieter, revenue is down 7 per cent compared to last year, Haywood can afford to spend some time looking at new offices.
“It is a great opportunity to get good offices at low cost, so I am spending a couple of days looking at premises,” he said.
“We are doing what we tell our clients, sell at the top and buy at the bottom.
“I think every practice should now be looking at refreshing itself before the markets start growing again.”
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