I've just read the article on IFAonline discussing the latest Plimsoll research entitled: 'Hundreds of IFAs in trouble as parallel with airlines drawn.'
This has got to be a joke hasn't it? Not the research, but the fact so many firms are going under trying to cling onto a failing and outdated business model.
A lot of firms have completely ignored the warnings about the need for them to change. When times were good they were making enough to survive and didn't see the need to "repair the roof when the sun was shining". Now it's raining and they are getting wet.
This is a ridiculous situation when you consider that the example business model, one focused on providing ongoing service to existing clients in return for recurring income (whether that be trailing commission, asset based fee, monthly retainer or whatever) has been around for years and used successfully by hundreds of advisers.
Not only that but consulting firms like FP Advance (and others) have been offering help and assistance in making the transition as painlessly as possible without suffering a dip in income during the process.
Last year, in recognition of the need to make this information more accessible to advisers, we even developed an online teach yourself consulting programme aimed specifically at mass market advisers looking for assistance in changing their business model.
For less than £600 you can take yourself through a step-by-step programme and download all the tools and templates required to get you started with immediate success. It is astonishing that some of the advisers who are doing it toughest seem the most resistant to seeking answers that are staring them in the face (for less than the cost of a days consulting).
The winners in 2009 will be those businesses that keep things very simple for themselves and their clients and just do the basics well. Successful advisers are always looking to grow and to access the latest ideas. Those that fail seem wedded to the old ways and refuse point blank to consider other options.
Brett Davidson is chief executive at FP Advance.
A free trial version of the Transition Toolkit from FP Advance can be found at www.fpadvance.com
The views expressed in this blog are those of the individual.IFAonline
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