In a previous post we touched on the subject of the public’s perception of financial planners. In this post AdviserHead is going to explore the issue of running a profitable financial planning business.

Any business, whether it’s financial planning or a corner store, needs to focus on one basis principle to remain profitable and that is:

Is there more revenue coming into the business than expenses flowing out?

So how does a business ensure that it maintains a strong revenue stream?

One way is to develop a sales pipeline or sales funnel so that they have visibility of what revenue is likely to flow into the business in the near future.

Once you have this projection, you can then make some decisions about how you’ll manage your expenses.

To relate this to a financial planning business in particular, you would need to:

  • identify prospective leads – ie a client database, marketing responses, mail outs, seminars, referral networks, networking, community groups, family and friends
  • initial engagement - i.e. contact them to arrange a time to discuss their financial planning needs/goals/objectives and how your business may be able to assist them
  • convert to a client - i.e. you have shown sufficient value to the person for them to agree to pay you for your advice and services
  • retain clients – i.e. clients will not continue to remain your client unless they are satisfied with the ongoing advice and services that you provide them with
  • client advocacy – i.e. clients will refer others or recommend your advice and services to others when they reach a high level of comfort with your business



As always, I really appreciate you reading my posts and I’d love to know what you think.

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