May 28, 2008

Top 12 advisor mistakes

There's a good reason financial planners and advisors end up with a job rather than a business, according to Don Schreiber, Jr. Here are what he calls in his book, "Building a World-Class Financial Services Business," the worst mistakes an advisor can make:

  1. Channeling all your services to a client through one person.
  2. Focusing on gross revenue, rather than recurring revenue.
  3. Being unwilling to reinvest profits in your practice.
  4. Not aligning personal goals with corporate objectives.
  5. Failing to diversify asset bases away from businesses.
  6. Not understanding or recognizing your target market.
  7. Not creating a formal, written business plan.
  8. Offering the wrong product or service.
  9. Failing to formalize partnering relationships with other professionals.
  10. Failing to institutionalize your management practice.
  11. Not developing a formal cash flow management system.
  12. Neglecting to develop an exit strategy.
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