My consulting business has the exact opposite problem of most independent advisory businesses. In my business, I tend to spend more time on the business — thinking about new ways to help advisory firm owners and how to get that information out to more of them — than I do working in my business.
In contrast, most advisory firm owners (at least most of the owners that I’ve come across) are far more likely to spend their time working with clients than working on their businesses. This can create problems.
The owners of today’s advisory firms that are generating $2 million or more in annual revenue who wish to grow their businesses toward the $1 billion in client assets-under-management mark (or roughly $10 million or so annual revenue) need to appoint or hire a full-time CEO to guide them to their goal.
However, most smaller advisory firm owners — with more modest growth goals — don’t have the resources to support full-time management, either by filing the role themselves, let alone hiring an outside professional.
But that doesn’t mean that these firms wouldn’t benefit from having someone working on the business — that is, thinking about ways for their firm to be larger, more profitable, and more successful.
In most independent advisory firms, that means the owner needs to spend more time working on the business, rather than in it. To do that, firm owners need to change the way they see their business — and their role in it.
Most advisory firm owners would be more successful (however they define success) if they learned to manage their time better.
For firm owners who want to grow their businesses to have more clients, increased revenues and/or higher profit, better time management is essential. This means they need to spend a significant portion of their time on their business, rather than in it.
Of course, if you’re like most firm owners, you barely have enough time to do what you’re currently doing, therefore the prospect of spending more time on your business doesn’t sound possible.
The reality is it’s a lot more doable than you think.
The first step is getting some help. I’m not talking about hiring more people, although in some cases that can really help.
For many owners, “more help” is available from two sources: delegating and outsourcing.