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