When it comes to business, bigger is better, right? Not always, says April-Lynn Levitt, a Toronto-based coach with the Personal Coach.
A decision to increase the size of your practice should never be made on a whim. You must ask yourself serious questions to determine whether taking on more clients is the best choice for you, and whether you can support an increase in responsibility.
Levitt shares four questions you should ask yourself before deciding to go big:
1. Do I really want to change my practice?
Consider whether you actually want to grow your business. If you are satisfied with your current workload and your firm does not have any requirements regarding growth, there may be nothing wrong with maintaining your practice as it is.
Think about the lifestyle you enjoy. Would you require extra revenue to make it happen, or would expanding your client base prevent you from having the time to enjoy it?
For example, if you like working as a sole advisor and you enjoy an annual month-long vacation, you might find it difficult to continue this way if you decide to dramatically increase the number of clients you serve.
2. What is the type of client I’m hoping to add?
If you’re going to grow, you should be looking to increase the number of “ideal” clients you have.
Think about the clients you added in the past year, says Levitt. What are some of their common characteristics and what was the average revenue they provided?
If, for example, you prefer to work with sophisticated investors, you would be looking for mature, affluent clients with lots of investing experience, as opposed to younger clients who are just starting their careers.
3. How will I adjust my client-service model?
If you plan to take on additional clients, you’re going to have to think about the level of service you can provide for each client.
Says Levitt: “A lot of times advisors think they have to do the same thing for every person.”
A client-segmentation process can help you decide on the extent to which you attend to various clients. This change will help free up your time.
You may have previously met with all your clients twice a year, with monthly phone calls for every client. With a larger client roster, that level of service might be unsustainable. Instead, you can maintain that service for your top clients and move the bottom-tier clients to a program in which you meet once a year and email them every other month.
4. What are my staffing needs?
More clients and an increase in services will probably require more staff for support.
Someone who can take care of administrative tasks should be your first concern, says Levitt. Even a part-time assistant can make a difference in your workload. Have your assistant look after booking appointments and filling in paperwork so you can focus on tasks such as meeting with clients and networking.