The most successful financial planning practices are those that outsource services and processes that don't fit with core tasks and which may mean not changing licensees but how the practice operates.
Associated Advisory Practices chief executive, Soula Cargakis, said that focusing on specialisation and outsourcing other tasks where possible boosted practices and that in her experience practices that did so were the most financially successful.
Cargakis said this issue was critical for advisers dissatisfied with their current licensee and were seeking to obtain their own Australian Financial Services Licence (AFSL) and for them to understand what they will offer to clients in the event they gain their own licence.
She stated that while advisers may consider gaining their own AFSL because of concerns around independence, poor media perceptions of a parent institution, restrictive product lists or bad adviser support they may be better suited finding a new licensee instead of going their own licence.
However for those who insist on being self-licensed Cargakis stated they should focus on the core business of advice and generating revenue early on and outsource and manage areas such as compliance and risk management under a clear business plan utilising the resources of other service providers.
"As a licensee you need to be comfortable taking responsibility for every aspect of your practice and business, including quality of advice, compliance, and risk management," Cagrgakis said.
"Most successful licensees have a mentor or strong business partner who can provide guidance, support and direction. Every successful person has help from others — someone to share their challenges, issues and be a sounding board for their plans and decisions."
