Planners: know your value proposition
Every planner should be able to enunciate what they do and how they add value in a 15-minute spiel, says HLB Mann Judd business services partner Matthew Gardiner.
There is a common theme running through every successful business Gardiner has worked with: they have a clear strategy, and they know exactly where they're going.
"They communicate it not only to themselves, but also to their team and their customer base," he said.
A well-run business will always do well, regardless of the global economic climate, Gardiner added.
Successful businesses owners not only know which numbers they should be watching, but how to monitor them, Gardiner said. In addition, they look carefully at the non-financial drivers of growth as well as the financial aspects of the business, he said.
Financial planning practices are under unique pressures, with the Future of Financial Advice reforms set to become law in the second half of 2013, Gardiner said.
Many planners have had it "too good for too long" with books of trailing commissions, and the time has come for them to "justify their position in the value chain", Gardiner said.
A lot of financial planning practices are likely to completely rewrite their business models, he added.
But there is still plenty of cause for optimism in the coming year, Gardiner said.
There will be opportunities for mergers and acquisitions for smaller businesses in 2013, and there is funding available from the banks for businesses with a clear strategy, Gardiner said.
Banks are more careful about lending now compared to before the global financial crisis, but for those who can clearly enunciate what they're going to do with the banks' money and how the loan will be serviced, the funding will be available, Gardiner said.
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