Some financial advisors may find themselves facing a problem: their practice is profitable but it is not growing. For any number of reasons, these advisors find that it has become much tougher to acquire new assets to take their practice to the next level.
“They have reached a plateau, which is typical of mature businesses,” says Nadira Lawrence-Selan, marketing and communications consultant with Hathleigh Consulting in Woodbridge, Ont. “It’s a sweet spot for some advisors but uncomfortable for others who want sustainable growth.”
So, if you want to take your practice to the next level, Lawrence-Selan says, you have to “breathe new life into it, even if it means breaking [from] what worked for you in the past.”
Here are five ways to help grow your business beyond a plateau:
1. Revisit your vision
Your vision is what got you to where you are today. The plateau is a normal part of the business cycle following a period of solid growth.
To get to the next stage of growth, Lawrence-Selan recommends setting new growth targets and putting measures in place to attain them – just as you did before you arrived at this plateau. Be realistic in taking into consideration new challenges and opportunities, which might have changed since you last evaluated your plan.
2. Evaluate what you have done well
You have done a lot of things well to get this far, Lawrence-Selan notes. Ask yourself: Can I do some of these things better? Should I tweak some practices to reflect changes in the operating environment? What are my competitors doing differently?
You also have to look at your past sources of clients, she suggests. Are your efforts to get referrals missing the mark? Are your centres of influence still working? Are your marketing efforts still effective?
“You already know the ingredients of past success,” Lawrence-Selan says, “so it should be easier to make changes where necessary.”
3. Prepare a new runway for take-off
To climb the growth curve again, Lawrence-Selan says, you will have to re-energize your current processes.
In addition to revisiting your client-acquisition strategies, she says, you also should consider enhancing your value proposition; rebranding your practice; and introducing new products and strategies.
She recommends making use of all available methods, including social media to “reposition the new you.” Effectively, you should prepare a new runway to achieve sustainable growth.
4. Realign your resources
Make sure you have sufficient resources to support your new push for growth, says Lawrence-Selan: “Maximize the efficiency of existing resources by reallocating tasks among staff members.”
This is especially important if too much of your time is spent servicing client needs instead of growing your practice. Hire new staff, if necessary.
5. Grow through acquisition
In an increasingly competitive environment, achieving organic growth can be slow and challenging. You can achieve greater scale by acquiring an appropriate book of business and integrating it into your practice, Lawrence-Selan says.
“Select a target that can be integrated with your practice without too much pain,” she says. “Otherwise, an acquisition can slow you down and run counter your objective.”