The true identity of your business doesn’t lie in your current results (looking back at 2006); it lies in what you will do in the future. Now is the perfect time of year to think about your future, especially next year. With that in mind here are 7 strategies to help you have a great next year.
Strategy 1 – Commit to Continuous Learning. Here is a recent quote that I came across from Harvard Professor David Garvin that really resonated with me:
“In a world of unrelenting change, about the only sustainable advantage is learning. Competitors can copy your products, duplicate your technology, duplicate your process, but as long as your organization is learning faster than theirs, you will always remain ahead.”
The most amazing technology in your business is the human beings. You may be able get more efficient by rearranging activities, but to become more effective requires better and better thinking. Put an emphasis on learning new skills and ideas (in addition to your required CE’s). Commit to learning the business management skills required to build a great firm.
Strategy 2 - Narrow your focus. It is impossible to please all people all of the time. The problem is most businesses work with far too many different types of clients, which is a root cause of many time and profit challenges. Working with too many types of clients also challenges your ability to deliver your product or service with excellence.
Every business, no matter the size, has limited resources. How effectively you use these resources to both attract and retain clients determines your growth and success. Chasing too many different types of clients (perceived opportunities) is actually a barrier to sustainable growth, due to the time consuming nature of servicing and finding clients.
Your business cannot be all things to all clients; it must be focused on serving a very clearly defined client. This will also enable you better target and communicate the value of your service with the prospects, making attracting new clients much easier.
Strategy 3 - Work ON your business. Most of us spend all of our time working in our businesses – doing it, doing it, doing it, busy, busy, busy. If you focus all of your time and attention “inside” your business, how can you ever move it forward (take it to the next level)? The best way to work on your business is to set aside specific time each week to do your strategic work. The work of envisioning your future, developing your strategy, communicating your vision, planning and executing strategy. Imagine your business as a lump of clay. What would you mold it into? What would make it perfect for you, and perhaps someone else? This is working ON your business.
Strategy 4 - Systematize Everything. The ability to design and document systems is an essential business management skill. The benefits of business systems are almost endless: improved profits, improved efficiency, more freedom for you and your staff, and knowledge management (a process dependent business rather than a people dependent business).
If you need more reasons, here is a great quote from Ron Carson who has been LPL’s top producer for the past decade, “When you have systems in place, your production increases. And because I'm able to do more for my best clients, business increases as well. In the past two years, not only has my business grown dramatically, but with the same number of people, we've gone from being under-staffed to being over-staffed. It's amazing. We are also all having a lot more fun."
Strategy 5 – Routines will set you free. Humans are creatures of habits – both good and bad behaviors. Good business management skills plus effectivebehaviors result in profitable growth.
One of the behaviors we recommend to help facilitate implementation and execution is to develop and keep a routine schedule. Get to and leave the office by schedule. Block specific times in your weekly schedule to work ON your business, to work with clients, to build additional relationships, to work with staff, to improve your business and to learn the business management skills required to reach the next level. Develop productive habits and then make them routine.
Strategy 6 – Strengthen Client Relationships. According to a survey by Cerulli & Associates, almost 1/3 of all high net worth individuals who currently work with an advisor would “consider” switching advisors.
When asking most advisors what makes them unique, a common theme is “excellent service.” Most believe reacting quickly to a clients need is excellent service. We believe excellent service is delivered in a proactive manner. The best way to deliver proactive service is to get to know your clients even better and anticipate their needs.
Deepen relationships with your top clients. Call them on their birthday. Take them out to lunch or dinner and get to know them better. Send a hand written note letting them know you appreciate them. Be sincere and genuine. Understand who they are as people, not AUM.
Strategy 7 – Hire a Business Coach. If you are truly interested in improving, rarely can you do it alone. Why not hire a business expert to help and coach you through learning business and implementing new business management skills. Most advisors have no structure or systems to support them and hold them accountable for executing their strategies.
Education + Coaching = Sustainable Success. Education without coaching will most likely not get you the traction and implementation that you would like. Coaching without the education will not move you as far and as fast. A combination of the two is the most effective method for growth and improvement. Why? Human behavior. The reason people fail to achieve their personal and business goals rarely has to do with their vision or strategy, but with their behavior – not actually doing the steps required to reach their goals. Knowing what to do and actually doing it are two different things.
The Future looks extremely bright for the advisors who take the steps now and prepare for growth. Choose one or all of these strategies and start working ON your future in 2007. _________________________________________________________________________
