In-Boarding Solutions for Financial Advisers

In-Boarding Solutions for Financial Advisers

We have assisted numerous Advisers with this strategy over the years to great affect. Resulting arrangements have led to fantastic outcomes with Advisers noting more enjoyment in the work, closer ties to clients, and more optimism to grow and engage new clients.

Effectively, by removing all the headaches attached to running a practice (capacity constraints) Advisers can return to being, well Financial Advisers. Not part-time Adviser, part-time practice and operations manager.

I know from personal experience over 20 years the headaches of running a business, wearing multiple hats and trying to be all things and an expert in multiple fields.

As a Financial Adviser please place a tick next to all the activities you enjoy?

• Following up product suppliers with implementation queries
• Following up a client to sign or lodge a document
• Xplan training to lodge file notes, produce a client review, write a new SOA/ROA
• Data entry to update a clients details in Xplan
• Writing and producing SOA’s in Xplan
• Calling a client to book a meeting
• Preparing files for Audit
• Tracking annual reviews to ensure compliance and payment
• Reconciling your payments for advice and checking for accuracy
• Maintaining your IT systems and Cyber Security
• Researching and adapting a CRM system for your business
• Developing an automated monthly or quarterly client newsletter / update
• Strategising a marketing plan, researching and selecting an up to date platform website integrated marketing process.
• Writing marketing materials to request referrals from existing clients, run a seminar, or attract on-line social media driven enquiries.
• Manage staff, HR requirements, salary reviews and personnel development plans
• Bookkeeping, budgeting, forecasting, pay-runs, staff superannuation
• Supplier negotiations and contract management

Or

• Just speaking with clients about their life, aspirations for family and advice requirements
• Networking with aligned professionals to discuss the value of advice

If you have a mentor or business coach, I’m sure they will regularly remind you that spending 70% of your time on revenue raising activities is the most important part of running a practice.

Given the un-exhaustive list of chores above, in a 40 hour week you should complete these in 12 hours.

So, what are the practical implications with In-Boarding Solutions for Financial Advisers

All Financial Advisers have differing circumstances and thus requirements, we’ve modelled a few scenarios:

Scale up and Grow - Solo Adviser 5-7 years in practice wanting to grow

• Sign a staged contract with ‘your’ clients ring fenced for 12 months
• Continue supporting your clients under the new banner
• Remove all admin & operational tasks
• Receive dedicated CSM/Admin and SOA support
• Just be a Financial Adviser
• On agreement after 12 months transfer ownership to the new entity for cash or equivalents
• If not in agreement, walk away with your clients intact

Scale Up to Scale Down - Mature solo Adviser wanting to wind down 5-10 years or sooner

As above although tweaked to provide a succession plan for your clients / practice

• Sign a staged contract with ‘your’ clients ring fenced for 12 months
• Or on commencement sell 50% to the entity for cash (*normalised ebit) and swap 50% for equity in the new entity.
• Continue supporting your clients under the new banner
• Remove all admin & operational tasks
• Receive dedicated CSM/Admin and SOA support
• Just be a Financial Adviser
• Employ an Associate Adviser to train and develop as your succession plan – in your own timing.

Mature Advisers may also benefit from reading this article – Scale Up to Scale Down

Notes:

*Normalised ebit is preferred modelling to ascertain financial performance of your practice when integrated into a larger business, or for sale on the open market.

A solo Adviser business will attract an ebit multiple of 3-5 times depending on the size, quality, performance etc

Larger entities / practices with revenues circa $3m upwards attract much higher multiples. Thus, any equity you hold in a larger practice is worth much more than a smaller practice – often double or more.