The top 10 financial planning tips for 2012

Fiona Mackenzie presents the top 10 tips for financial planners for focusing on client relationships and value propositions in 2012.

For many financial planning firms around the country, 2011 was another challenging year marked by market volatility and regulatory uncertainty.

While financial advisers have shown resilience and are optimistic about the future, as we begin the new year it is a good time to reflect and decide what to focus on in 2012. There are some small steps that every financial planning practice can take to help improve business performance during the year ahead.

1. Be true to yourself

Focus on your strengths and those of your business.

There is much discussion in the industry about diversification, but if you have established a niche and you do something well, keep doing it. If it is something you are passionate about and good at, your clients will pick up on this, helping to confirm that their decision to engage you was the right one.

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Whatever it is you do well, do more of it and keep the momentum going.

2. Focus on being interested, not interesting

Be curious and go that extra step to get to know your clients in order to strengthen your relationship with them.

The same goes for referral partners. Consider taking a new approach to getting to know your clients: for example, using a personality tool to help you understand their approach to decision-making and investing.

3. Develop the art of storytelling

It can be difficult to articulate to clients the value your business adds. Build a connection with the listener and use examples of success stories that your clients can relate to, to demonstrate how you have helped someone achieve their goals.

It is the service you are providing, not the product, which is of real value, so the ability to articulate this is what can set you apart.

4. Accept the new norm

We do not always want to accept reality, but the fact is the world has changed as a result of the global financial crisis.

Clients’ confidence, like the share market itself, is more volatile and clients are keen to understand more about their investments and the value they get from financial advice.

Client sentiment typically reflects where the share market is, so expect your clients to ask questions about what is happening in the market and what this means for them.

5. Keep talking to staff

Make sure you keep communication channels with your staff open. If you are feeling under pressure, the chances are your staff will be too, so it is important to keep them motivated and engaged through communication.

Ensure your staff understand what is important to your clients and set key performance indicators around this so you are all working to achieve a common goal –for the business and clients.

6. Get clear on what your vision is

Many people get asked what their five-year and 10-year plans are, but it can often be difficult to look that far ahead.

Asking where you see yourself in three years is a much more manageable and constructive task for most people, taking their attention away from the day-to-day tasks and encouraging them to think about what changes they need to make to reach their goals.

For example, do you need to update technology to increase your workflow? Do you need to invest in new talent?

7. Step outside the box

What are you doing to actively manage your ageing client base? Are you talking to them about their changing needs and discussing their estate planning and aged care needs?

Importantly, are you talking to their children?

Educating adult children about how their parents’ needs will change and how to prepare for this will also demonstrate the value of financial advice and could help you attract new clients too. 

8. Start networking

Having the ability to meet your clients’ financial needs does not necessarily mean you have to diversify your own services: instead you can partner with other specialists, while you focus on what you do best.

Building a stronger and broader network of referral partnerships with accountants, mortgage brokers and risk specialists means you can offer your clients access to experts across a broad range of areas, while maintaining the relationship with your client.

Establishing a referral partner program and agreeing referral targets can be a good way to formalise these relationships.

9. Measure results

When it comes to marketing and business development, have a plan, but more importantly, make sure you measure the results.

Most businesses have a plan, but the key to finding out whether it actually worked and how it should continue to evolve is to ensure you are using an effective method to measure what went well and what still needs attention.

10. Set new goals

It’s a new year and a time to reflect on both past experiences and future opportunities.

It can be easy to lose sight of why you first went into business and what you hoped to achieve, so now is a good time to reflect and consider if your goals are still relevant. It is also a good time to set new goals and make practical resolutions.

Choose something which is achievable: for example, schedule a value-add meeting with each of your referral partners every fortnight. 

Improving business performance does not have to be about making one big change.

Making a series of smaller changes that are easier to implement can often make a more significant impact on the broader business.

At the beginning of each New Year, many of us re-evaluate where we are and where we want to be in life and make New Year’s resolutions to achieve these new goals.

As financial planning firms look towards the year ahead, the first step towards achieving success in 2012 is to set goals that are realistic, but more importantly, to stick to them.

Fiona Mackenzie is the senior practice consultant at Macquarie Practice Consulting.