Time to Update Your Business Plan

A client’s success is predicated on having a dynamic plan that adjusts to changing circumstances. The same holds true for a financial advisor, whose business plan must be continuously updated so that it can serve its essential function of growing a practice.

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    Time to Update Your Business Plan

    Time to Update Your Business Plan

    A client’s success is predicated on having a dynamic plan that adjusts to changing circumstances. The same holds true for a financial advisor, whose business plan must be continuously updated so that it can serve its essential function of growing a practice.

    Reasons to Update Your Business Plan

    There are several reasons that make an annual review of your business plan critical to your future success, including:

    1. An Ever-Changing Industry Landscape—The pace of change in the financial services industry is breathtaking—and only picking up speed. Advisors can no longer operate like they did just five years ago and expect to stay relevant to investors for long. Financial competitors have reduced trading commissions to $0 on equity trades, while the universe of zero and low-fee ETFs continues to expand. Don’t be surprised if competitors in the next five years begin paying investors to park their investments with them.
    2. Enhanced Focus and Discipline—Once a business plan is written there is the risk that it is soon forgotten. By incorporating an annual review, you can better ensure that your strategic vision informs new business activities and initiatives.
    3. Identification of Areas for Improvement and Opportunity—An annual review provides insight into where improvements in marketing, staffing and client servicing can be made, as well as discover new opportunities to pursue.
    4. Planning Smarter for the Future—By looking at the past and tracking progress against goals, you can make more intelligent decisions about the steps to take in the upcoming year.

    Components of a Business Plan Review

    There are four key components of an annual business plan review.

    1. Get Client Feedback—No business plan can ignore its clients. Be sure you ask your clients what they want from you (which may change from year-to-year) and to share with you what you are doing well, not so well or not doing at all.
    2. Review Your Results—Looking at your results relative to your goals can determine how different initiatives worked—or didn’t work—and prompt you to recalibrate your efforts to more effectively achieve your business objectives.
    3. Review Staffing—Your staff is a crucial contributor to your practice’s success. Are you properly staffed? Do they have the skills and education to maximize client servicing?
    4. Perform a Competitive Review—Business can’t operate well for long without an understanding of the options available to potential clients. This landscape is always evolving, requiring that your view of the competition reflects what’s happening in your marketplace.

    Perhaps the biggest obstacle to an annual review of your business plan is time constraint. As busy as you may be, a business plan review may turn out to be one of your best investments.

    Please reference disclosures: https://blog.americanportfolios.com/disclosures/

    About The Author

     

    Director of Practice Management 
    631.439.4600, ext. 212 

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