How efficient are you as a financial advisor?

Mar 24, 2018

As a financial advisor, your time and energy are limited. What you do is tough and is getting tougher. There is no doubt about this.  The marketplace is changing, pressures are mounting, and the bar is being set higher. To remain competitive and successful, you must adapt your business to the changing environment.

There are several market pressures impacting your business and bottom line.

  1. The first is industry consolidation among advisors. We have witnessed an ever-growing wave of mergers and acquisitions amongst both broker dealers and RIA’s over the last few years.

  2. Market pressure to obtain the lowest cost possible has also driven recordkeeping and advisor fees to historically low levels. Despite lower revenue, the pressure remains high to demonstrate value to clients.

  3. And, based on the changing regulatory environment these last several years, the spotlight is now on advisors to ensure that they are always acting in the best interest of their clients. This can impact or restrict the products advisors can recommend to their plans and participants if they are not able to clearly demonstrate how they impact the cost to participants.

So, what does this mean for you?

Prospect efficiently

With the spotlight on your role, your compensation, recommendations, and your value proposition now more than ever, you need to make sure you’re making the best use of your time.

Professors at Harvard Business School found that an average of 41% of a knowledge worker’s time was spent on tasks and activities that could be handled proficiently by others1.  Think consciously about how you spend their time; decide which tasks matter most to you; and drop or outsource the rest.  Even if you can do that with 20% of your time – that’s one fifth of your day’s work, or an average of one full day per week that you can have back to focus on tasks that are core to your business.

For example, most Financial Advisors have no difficulty locating prospecting lists. The challenge is ensuring you are getting in front of the right prospects each time.  Prospecting efficiently keeps you from spending time on unqualified leads that aren't suited for your product or service.

Retain your clients

While generating new business is critical to growing your business, it generally costs your company 6 times more to attract a new client than keeping an existing customer2.  Retaining your existing plans is critical to your efficiency and bottom line.  You need to make sure that you are reinforcing your value to your clients on a regular basis. If you don’t, you leave the door open to someone else who will.

One of the ways you can start to develop more efficient system is to partner with a plan provider who can help you to develop an effective and relevant service approach with your clients, allowing you more time to focus on the things that are important to your business.

1, 7 Quick Ways to Free Up More Time in Your Day: Carly Stec, July 28,2017

2A Customer Saved Is Worth a Customer Earned…Times 5. Evolve Performance Group Blog. September 9, 2016.

G-I 36273-GE 03/18-36273                                                                                            GA031518439560 

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These articles are not an edorsement of any particular product, service or orginization; nor are they intended to provide financial, tax or legal advice. They are intended to promote awareness and are for educational purposes only.