Building an efficient financial advisory practice starts with a business plan, says Philip Bensen, head of national sales, Canada, with Franklin Templeton Investments Corp. in Toronto. Your business plan should define your business goals and how you are going to achieve them. It should include the processes, methodologies, technology and staffing you will need in order to achieve those goals.
A good plan includes a strategy that enables administrative staff to free you up to communicate with clients and prospects and perform other high-value tasks.
“You want to spend time making money,” says Heather Holjevac, certified financial planner with TriDelta Partners in Oakville, Ont., “not getting bogged down with administration.”
Here are five crucial steps to building an efficient practice:
1. Maintain integrated technology
No practice can be successful without the appropriate technology, Bensen says. Advisors must maintain client data, prepare financial plans and client statements, monitor performance, communicate with clients and schedule meetings. Having integrated technology to support these activities is critical to maintaining an efficient practice.
With an efficient client relationship management (CRM) system, Holjevac says, “you know what you have to do for each client without having to think about it.
“With an integrated system,” she adds, “you can easily pull up a complete client file.”
2. Document key processes
Writing down the activities you perform every day makes it easier for support staff to carry out their responsibilities and gives you assurance that your staff knows what needs to be done on an ongoing basis.
For example, Holjevac says, you would outline the process you follow when you acquire a new client — such as sending the client a welcome package, establishing a client review schedule and entering the client’s information in your CRM system.
3. Ensure you have the capacity to grow
Without sufficient staff, your practice can become inefficient. “You have to know when it is right to hire additional staff — when to take the leap,” Holjevac says.
Although adding staff is a budgeting issue, you must invest in additional staff if your capacity to deal with your existing clients is becoming overwhelming. Having the systems capacity to support the growth of your practice is also critical, Bensen says.
4. Define staff responsibilities
“Ensure that you invest in the right staff, who can add value to your practice,” Bensen says.
Make sure each staff member has a job description that defines their duties, roles and responsibilities so that they are never unsure of what they should be doing. A well-focused staff will enable you to concentrate on what you do best without spending time on administrative tasks.
5. Manage your time
“Time management is all about the identification and prioritization of the primary goals of your practice,” Bensen says.
You should first identify those goals and establish clear time lines for achieving them. Allocate your time, on a daily basis, to the various tasks you have to do to be most efficient, Holjevac says — right down to when you should return phone calls.