Rebecca Murphy, director at North Investment Partners, explains why thinking about the value of your business is more important now than ever before.
In the run-up to London 2012 IFAs may well believe they and their businesses are being put through fitness trials of Olympian standards of their own.
Certainly the financial world has had to grow used to change and for many IFAs success has started to assume a very different complexion.
It has long been argued that future success lies in building a business around the pivotal heart of the organisation – clients. Gone are the days for those advisers who used to see life as an over-simplified, sales-led challenge.
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For the majority of IFAs however, those who had already understood the futility of boosting their immediate income streams with only modest regard for the preservation and development of the business framework, client focus and clear audience segmentation has become the order of the day.
The emphasis is on establishing an effective and robust infrastructure for their businesses in order to best serve their clients, not just today, but on an ongoing basis. This demands an in-depth understanding and ability to counter the possible, even some of the improbable risks facing them.
It calls for the practical implementation of scalable processes and a methodical approach to the way to go about growing and strengthening the client base. All this, and all the while keeping a watchful eye on profitability!
Attention to both effective and appropriate service management for the client and planned service management of the firm leads the way to enhanced business value.
It is plain that many advisers, while wholeheartedly embracing the importance of creating a client-centric organisation, frequently omit to address the strategic necessities of underpinning the long term value of their firm.
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