The COVID-19 crisis has created great challenges for advisory firms, such as forcing remote cultures, falling profit margins and, for some, slowing revenues. But in the middle of adversity and unprecedented change also come opportunities.
As some states start to reopen, advisory firm leaders can renew their focus on growth opportunities. But how can advisors grow through changing times?
Begin with a growth strategy. This strategy is more than a marketing plan and/or programs, and I hate to break it to you, but marketing is often not the first step.
Here’s how to start:
1. Audit Your Organization
Before growth, you need to know where you are and have a clear idea of where you want to be. In many years of consulting, I’ve found firm leaders intuitively know where they want to go but have little idea of where they are.
Auditing your organization begins with data and logic. You may “feel” like your lead rate, client referral rate and close rate of new clients are slowing down and/or speeding up, but are they?
The only way to know is to analyze what is/has been happening.
2. Define the Problem
Once an audit of the numbers is done, nine times out of 10, firm leaders come up with how to solve the problem, and those solutions usually mean “more” of something: low lead flow, let’s add more marketing; low close rates, let’s hire business developers, etc.
But they don’t know the problem yet. Throwing solutions at problems and hoping one will stick is no way to grow. In fact, it does the opposite.