Getting the Balance Right

I recently reviewed some key metrics of a financial planning practice. The Principal has reached out for help. He feels overwhelmed combining a large load of client work and running the business. For the sake of anonymity let’s call the practice High Street Financial Services.
To benchmark how this practice was performing I compared the metrics against the 7 Key Marketplace Metrics released by Praemium in conjunction with Business Health. The metrics shared were from Business Health’s latest analysis of key data provided by 300+ Australian practices.
It was an interesting exercise in overlaying the performance of a practice that had been operating for 5 years. The financial planner/business owner has 10 years experience as an adviser. He is considered to be an excellent adviser, degree qualified with very high technical skills and a good compliance track record. He says that he works long hours including some weekend time and is becoming burnt out.
The 7 Key Metrics
Revenue per Client
Marketplace average                                   $3,558
High Street Financial Services                    $2,635

    Clients per Adviser
Marketplace average                                   241
High Street Financial Services                    183

Salaries as a % of Revenue
Marketplace average                                   44.2%
High Street Financial Services                    57.5%

Support Staff per Adviser
Marketplace average                                   1.1
High Street Financial Services                     1.8

Client Satisfaction Ratings
Marketplace average                                   4.23/5 (top quartile)
High Street Financial Services                     n/a

Practice Profitability
Marketplace average                                28.2%
High Street Financial Services                 17.3%

Rent as a % of Revenue
Marketplace average                                6.2%  
High Street Financial Services                7.1%

This is the first time the business owner has seen any comparative data across performance metrics such as these. The performance of this business could be better. It looks like a classic example of the financial planner/owner totally absorbed in his client work. Too busy working in the business, and not working on it.

Getting the balance right regarding focus on clients and on the business is an imperative.
In my role as a Virtual General Manager I shall work with this financial planner on improving business performance and also assist in a more balanced personal life.
There are some key initiatives that require review & attention, including the following: Client value proposition incl target market Cost to serve & fee proposition Service packages Staff roles & responsibilities Processes Client satisfaction survey I am very confident I shall be able to provide a lot of support to this financial planner and improve both his business & personal life – Getting the Balance Right.
For further information call Bob Blurton on 0488403139 or email