The five factors for growth

Iress and Deloitte’s Advice 2030: The Big Shift report revealed a potential $2.1 billion in new revenue and nearly half a million new advice clients seeking professional help by 2030. That’s a big opportunity, sure, but how many advice firms have the capacity to seize it? 

Business Health director Rod Bertino believes there are five key areas that will determine whether or not an advice business will come out on top of the “big shift”. These areas are relevant both at an individual and team level and should be considered closely if an advice business aims to capture the growth described in the report.

So what are the five factors for growth? 

1: Leadership and strategy 

Change starts at the top, so Bertino thinks there are several important questions advice teams need to ask themselves about their leadership: are the leaders of your business aligned – not just on business goals, but personal goals? And do you all agree on what success looks like for the next 12 months to three years? 

“Leaders need to be ready to have frank conversations and challenge each other,” Bertino says. 

2: People

Your people plan is essential to support growth and unlock your team’s true potential. It should make clear how you will achieve the capacity required to match your growth ambitions, and it should clarify which non-core activities and support roles need to be outsourced as well as which low-value activities need to shift from advisers’ to-do lists onto others in your team. 

According to Bertino, “everyone’s goals should be clearly aligned.” Everyone should know what their individual success KPIs look like and where the firm is tracking towards its KPIs. 

3: Operational compliance

Compliance processes are one of the biggest bottlenecks when trying to improve efficiency and scale up for growth. Addressing them requires a systematic approach: with the appropriate systems in place, firms can reduce back-and-forth time between advisers and paraplanners, make file note templates and back-office processes consistent and deliver paraplanners the information they need to turn advice around more efficiently.

Bertino explains that while some advice businesses “think it’s the responsibility of the licensee to get external expert overview into systems and processes, all firms should be checking all the boxes on the latest interpretations of rule changes.”

4: Technology

“Every firm needs a solid tech stack that can put the client review process on autopilot and free up your team’s valuable time,” Bertino says. 

For many firms, that means exploiting Xplan’s powerful tools to streamline advice workflows and free up capacity – all while keeping your existing clients satisfied.

5: Cybersecurity 

Related to the tech stack question, cybersecurity is essential for protecting your business and your clients. It’s an incredibly fast-moving area, Bertino says, so getting specialist advice around what's currently happening in the space is critical.

A cyber culture must be established in every part of the business for the benefit of the firm and its clients. Processes, plans and procedures must be set down and reviewed on a regular basis.

Key ingredients for success

Honestly appraising these five areas will help you identify where change is needed. However, many advice professionals are overwhelmed by the idea of change; they believe they don’t have the time to focus on growth, or they think they don’t know how to effectively implement change. These beliefs will hold a business back.

Getting comfortable with change is critical for advice business leaders who want to take advantage of new opportunities. Bertino lists five prerequisites for bringing these efficiencies to reality:

1. Where do you sit today?
   
   According to Bertino, every business principal needs to start with an honest appraisal of where your business sits today, regardless of the journey ahead – whether you’re looking to improve capital value and exit the business in five years, or double in size.
   
   He says: “The questions to ask are: Where am I starting from? Where is my business? Where do I need to focus to improve the chances of success?”
   
   The Advisely Index can play a role in that assessment, helping you benchmark your business against your peers and identify areas of inefficiency holding your advice processes back.
   
   
2. The big picture
   
   You also need to have a clear vision of what you're trying to achieve with the efficiency gains you’re working towards. “Ask yourself what success looks like,” Bertino says, “and determine how you will measure it. And then put that down on paper.”
   
   He continues: “Where do I want my business to be in three to five years? What areas do I need to work on to deliver the goals I'm looking for? And then how am I going to get there?”
   
   
3. Strong leadership
   
   Principals must always keep their leadership role front-of-mind and stay focused. Daily demands on your time shouldn’t push aside the important strategic work.
   
   You must also be prepared to own the initiatives you agree on and lead implementation.
   
   “Say upfront what you want to be held accountable for and be willing to provide regular updates to the people who matter on how you're tracking,” Bertino says. 

4. Bring staff on the journey
   
   Even with a clear vision and the best of intentions, no leader can do it alone. You will always need to bring your staff on the journey; it’s the only way to ensure the vision isn’t compromised when things (inevitably) get busy.
   
   Leverage the capability that exists within your business and share your goals broadly with staff. Importantly, acknowledge their progress and celebrate the little wins.

5. Review your goals
   
   The market changes all the time, so it makes sense that you would review your goals and success measures regularly and be flexible enough to move your plans to take account of what's going on, internally or externally.
   
   As Bertino explains, “There is so much happening in the advice space, be it compliance, regulation, client demography, the intergenerational transfer of wealth - and it's not going to slow down.”

Now is the time to think carefully about how you will create more capacity and grow your ability to bring in more clients and revenue as the demand for advice grows. 

Stepping up your efficiency game gives you the freedom to decide how you’ll spend your valuable time – be it with clients, exploring growth opportunities or even taking back time for yourself.