The first days of January can set the tone for how an advisor’s practice will run for the next year. Do you expect this year to be different and more successful from the year before? If so, you may need to make some changes in your practice to get the results you seek. To kick off 2006, we created a list of four resolutions you should consider for a happier and more prosperous new year. The list covers some of the most critical areas of your firm, namely financial management, client relationship and business planning, and highlights some of the more important topics we brought to you in 2005.
1. Resolve to spend more time with the clients and build closer relationships with them. Our studies reveal that those advisors who spend more than 60% of their time with clients were eight times more profitable than those who spent less than 30% of their time with clients. While, there are many competing priorities in your business, it’s essential to manage your time wisely. A majority of advisors (61%) believe that trustworthiness is the most important reason why clients selected them. Build that trust via meeting with clients often enough to develop close relationships with them.
2. Resolve to put a business plan and succession in place. As with any endeavor you start, a plan which details your goals, milestones and tactics gives you a greater chance of achieving your objectives. Take it from the advisors who know–81% of advisors who have a biz plan do not consider the “need to work on and in business simultaneously” as a threat to their business. You also need a succession plan or exit strategy in place. Think about who might purchase your practice–a current partner or employee or possible another firm that you know of. By putting a plan in place and thinking about how such a transition might be financed will help you prepare for the next phase of your life. Even if you don’t plan on leaving your practice for many years, it’s always a good idea to have a plan in place, just in case.