New business development can be challenging for FAs, but a new report aims to focus on what really matters for growth
Many financial advisors (FAs) may struggle with business development, especially in today’s competitive and uncertain environment.
But there are some key themes that can help according to a new white paper from the Financial Planning Association (FPA) and global asset manager Janus Henderson.
While the study was conducted among FAs in the United States, the themes are relevant to Canadian advisors too and include how psychological factors can impact business growth.
The research revealed that just under half of respondents said they were happy with their current growth rate but only 12% had strong sentiment in this regard.
"New business development remains a perennial challenge for many financial advisors," said Matt Sommer, Head of Specialist Consulting Group at Janus Henderson Investors. "By examining the gaps between what advisers believe is critical to driving growth and what they have acted on, as well as the common traits among firms growing at an accelerated pace, our research with the Financial Planning Association provides all firms with actionable insights that can help put their business goals within reach."
Sales mindset
One of the key themes identified in the white paper is the fear of appearing as a pushy sales person.
This fear often prevents them from proactively expanding their client base and increasing their assets under management.
It also found that working in teams benefitted growth more than those working alone. Collaborative efforts and leveraging a team's strengths can be crucial in achieving sustainable growth.
Having a tailored approach to client onboarding is also key, with those respondents who onboarded ten or more clients in the previous 12 months more likely to have gone beyond simply identifying their ideal clients.
6 keys to growth
The six critical factors for advisors looking to grow their businesses, include:
- The anatomy of a business plan matters.
- Advisers know what they need to do to drive growth but don't always act on that knowledge.
- Firms with teams grow faster than those without.
- Systems and processes form a strong foundation for growth.
- It's not enough to define your ideal client; you need to actively engage them.
- Mindset can be a powerful influence on growth prospects.
The full white paper is available at financialplanningassociation.org
