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Long-Term Planning is Key to FA Success

January 9, 2017

Financial advisors need to apply the same long-term planning they offer their clients to ensure the success of their own businesses, Ed Pollis writes on WealthManagement.com.

There’s a correlation between a well-defined long-term strategy and business growth, according to Pollis, head of practice management and retirement readiness at Voya Financial Advisors.

To determine the overall direction of their business, advisors need to first define their long-term vision, he writes. Clarifying it will help advisors find and fill gaps in their business, be they fixing structural support issues or offering better services to their niche clientele, according to Pollis.

Next, advisors need to set up a three- to five-year roadmap, he writes. Here, the complexity of the plan will be guided by the size of the practice, according to Pollis.

A good place to start is setting a revenue target, and Pollis suggests a growth rate of 15% for the year ahead. Extending that target into subsequent years can help focus staff on revenue growth and in turn prepare the practice to double revenue over five years, he writes.

Advisors also need to determine their long-term staffing needs, says Pollis. This could mean bringing on experienced professionals or recent graduates, he writes.

Adding financial planning to their practice is another way to ensure long-term success, according to Pollis.

Research by Voya found that advisors who provide a minimum of 10 financial plans annually boost their revenue by 18%, he writes.

By Alex Padalka
  • To read the WealthManagement.com article cited in this story, click here.