Financial advisors typically make common mistakes that can lead to client dissatisfaction and loss of business. These mistakes are due largely to a lack of adequate processes; advisors’ failure to operate their practices like a business; and, in some cases, negligence or oversight.

The bottom line is that “advisors need to understand that they are running a business and not just performing a job,” says Scott Plaskett, senior financial planner and CEO of Ironshield Financial Planning in Toronto.

This requires taking steps to ensure that your practice operates efficiently in order to avoid making mistakes.

Here are five common practice management mistakes advisors make and how to avoid them.

1. Failure to make use of your team
Although your team members are your most valuable resources, many advisors don’t “appreciate the value of their team,” says Robert Ruffolo, senior vice president and divisional sales manager with Franklin Templeton Investments Corp. in Montreal.

“You have to bring team members into the fold and make them part of your business,” he recommends. By doing this, team members will have a vested interest in your success and it would also give you more time to focus on what you do best.

2. Not having an efficient business model
You must have an efficient business model that encompasses the various operational components of your business. For example, Plaskett has developed processes that focus on four key areas: marketing, sales, fulfillment and profitability.

Plaskett explains that the sales process is designed to communicate what you promise; the marketing process, what you offer; the fulfillment process, how you deliver on your promise; and the profitability process, find ways to be profitable.

Each of these processes is part of a business model, which facilitates efficiency in meeting client and business objectives. Ruffolo suggests having a client service model “in which everything is mapped out” to meet the needs of different types of clients and “that your team knows what must be delivered to clients.” This would ensure that client expectations are met.

3. Not responding to clients within the expected time frame
Clients expect you to respond to their questions or concerns within the time frame you promised — which is typically established upfront. Failure to do so can lead them to seek answers elsewhere.

“It’s a non-starter if you can’t keep your word,” advises Ruffolo. However, you don’t always have to be the one who responds to clients as your team can do so whenever it’s appropriate.

4. Neglecting to prospect existing clients
Advisors should strive to know everything about their clients — especially as some clients may have assets elsewhere and are in touch with other advisors.

If you don’t prospect these clients, you run the risk of losing them. In fact, Ruffolo says, “Advisors do not usually think about existing clients as prospects.”

Thus, he suggests that a good way to prospect existing as well as potential clients is to invite existing clients to an event and ask them to bring a friend along.

5. Failure to revisit client expectations
Advisors often assume that “nothing has changed with existing clients,” so they do not revisit their expectations, says Ruffolo.

“There is a huge opportunity cost that comes with this assumption,” he contends, as client expectations might change because of various life events. Therefore, you should ask your clients frequently about life changes and how you can be of further assistance.

“Make proactive rather than reactive calls to clients,” Ruffolo recommends.

You can also revisit clients’ expectations during their reviews or through feedback mechanisms such as surveys.