The Canadian Association of Insurance and Financial Advisors is announcing a partnership with Advisor Impact Inc.

The Business Success Kit, developed and managed by Advisor Impact, will be made available exclusively to CAIFA members in an effort to help them increase productivity and profitability. The kit is designed to help advisors give their practices a “check-up” and then map out a plan to operate more efficiently.

Each participant receives a detailed and customized three-part action plan based on the results of a confidential survey. That report includes: a quantitative assessment of the practice, benchmarked against the industry; individual commentary on strengths, weaknesses, opportunities and threats; and a step-by-step action plan to improve practice efficiency.

“The kit responds to a basic practice management question and one that we hear time and again from advisors: ‘where do I start?,'”says Julie Littlechild, president of Advisor Impact. “The reality is that we need to take a more analytical approach to managing practices going forward. This program is a launching pad for greater efficiency and, therefore, improved productivity and profitability for advisors.”

According to Littlechild, Advisor Impact’s research shows that profit margins are declining for the average advisor. That means that something has to change in the way that advisors look at managing both revenue and expenses in their practices. To support that process, the kit looks at client segmentation, structuring client service, business planning and managing client expectations.

She says practice management is becoming more important because: revenue is growing at a slower pace than assets and expenses, resulting in a looming profitability gap for many advisors.

Littlechild adds that the cost structure of the average practice is changing and is characterized by higher fixed costs. As well, most advisors do not analyze their practices thoroughly, and roles and responsibilities are not sufficiently defined in advisor teams.

“The Business Success Kit is another example of how CAIFA supports its membership on matters that affect their businesses on a day-to-day basis,” said David Thibaudeau, president of CAIFA. “Practice management is an area that tops the list of challenges for advisors today and we are committed to finding practical solutions to those concerns for our members.”