By: Michael Poirot, GamePlan Financial Marketing
Friday, May 9, 2008

Advisors who yearn to grow their business often face a myriad of decisions that range from identifying the next segment of prospects to finding and keeping top staff. Yet the first question that advisors should ask themselves as their client roster grows and they’re poised for expansion can be very easily overlooked. Is growing your business the best thing for you?

It can be easy to get caught up in the thrill of running and growing a business. You may find a tremendous rush of excitement in meeting and servicing clients or great satisfaction in the independence of being a small business owner. In some cases more clients and more staff translate into greater success and happiness. But this isn’t always the situation.

Sometimes, independent advisors find more success and happiness by choosing to remain small. When it’s time for you to consider expansion, ask yourself these questions.

What is my vision?

Determine what your ultimate goal is and why.

Do you want to grow your business because your client base keeps naturally increasing or are you working toward a predetermined financial goal? Perhaps you want to delegate more in order to spend more time with clients, your family or volunteering in your community. Or do you need to reallocate how you spend your time in order to expand your business into other markets or geographic areas?

There is no right or wrong answer. The important thing is that you know where you are going and why. It is completely natural to evolve your vision for your business over time. The key is how well you root your fundamental ideals into your business, so that as things change over time your basic approach remains constant.

Where is my time best spent?

Identify your strengths and weaknesses.

If your strength is meeting with clients, optimize your practice accordingly. Free yourself from the administrative tasks that can be handled by a dedicated office staff. There are some very successful advisors who have identified that their time is best suited calling on clients. In order to service their clients they have invested heavily in a skilled staff that runs the day-to-day operations of the office.

If you excel in the planning and administrative aspects of the business, you may be better served by having someone help you meet and service your clients. In this scenario, however, you will find peace of mind with a partner that you can trust because you minimize the risk of staff leaving and taking your hard-earned clients with them.

When you do bring on staff, hire the best salaried employees that you can afford for the position. Experienced professionals often cost more, but their expertise and efficiency can save you a substantial amount of time, anxiety and potentially lost revenue.

For independent advisors that currently work out of the home, seriously evaluate opening a dedicated office. Even though formal office space has additional overhead, it more than pays for itself because you can schedule client meetings in your office as well as at clients’ homes, saving untold hours on the road.

Will I be a good employer?

How will you make people want to come to work with you? Your company should be a place where every person you hire should have the expectation that you will provide the last job that they will ever have.

Treat your staff like an extension of your circle of friends, instead of treating them purely as employees. A good test of this is if you enjoy meeting new people and interacting with others. If you’re not prone to opening yourself up to other people, then you probably will not create an environment that is inviting as an employer.

Incorporate practices from “best places to work” lists into your culture. These can be as easy as casual Fridays, recognizing birthdays and anniversaries, and company outings or incentive trips.

In addition to low employee turnover, a warm and inviting work environment can translate into a willingness to work late hours and occasional weekends.

Am I a leader?

Some people are better suited to leading teams of people while others are more talented at working in the proverbial trenches. Both skill sets are admirable and necessary.

Ask yourself if you can effectively communicate your vision and inspire staff members, especially advisors who would work for you, so that they believe in and live your vision. Know that some people make good leaders, either because they are naturally gifted or diligently work at it. They are cheerleaders as much as salespeople and managers. Others excel in a one-on-one environment and are more interested in focusing on the business tasks at hand.

What kind of person are you? This is often one of the hardest questions that people must ask themselves.

When making your decision, remember that advisors tend to find long-term financial success and happiness by continuing to focus on what made them successful in the first place. Whatever your skills and life goals happen to be, respect and find grace in your unique abilities.

Do I want or need a partner?

Some businesses grow under a single proprietor while others are rooted in a partnership. Determine which option is right for you. Partnerships tend to do well where one co-owner is the lead salesperson and the other co-owner focuses on the operations aspects of the business. If you are considering this option, never underestimate the importance of choosing a partner that you can work with and trust over the long term.

When you do find a good partner, structure the relationship so that you can both focus on what you do best. Take special care that you have predetermined plans for day-to-day decision making, long-term planning, how to rectify disagreements, and other situations that businesses encounter. The additional planning and discussions that you have in advance will have a pronounced impact on your personal and professional relationship throughout your business.

 

What is my exit strategy?

Many small business owners have their personal wealth tied directly to their business. Some are so focused on building their business that they don’t take the time early in their careers to determine the best way to extract that wealth out of their business when it’s time to retire. There are many paths that can be taken, from an outright sale of the business to another advisor, to selling to employees, to simply closing the doors and referring your clients to other trusted advisors. Each of these options can have a very different affect on how you grow your business. Start planning early so that you have ample time to structure your business’ growth accordingly.

 

Whatever path you choose for your business, remember why you started it and remain true to your ideals. By taking a few minutes to pause and ask yourself these questions from time to time, you will be in a much better position to chart a path to personal and financial success.

 

Michael Poirot is a Field Marketing Manager with GamePlan Financial Marketing (www.gameplanfinancial.com), one of the world's leading field marketing organizations (FMOs) for independent life insurance advisors and financial advisors. He can be reached at mpoirot@gameplanfinancial.com or by calling 800-886-4757.

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