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Ever heard the riddle about the five frogs on a lily pad? One decides to leap off. How many frogs are left? If you said four, think again. The answer is still five. Deciding to leap isn’t the same as actually jumping. This is a lot like the journey many financial advisors face.
Thinking about making a change – how to grow, achieve more, escape the grind – is one thing. But thinking about leaping isn't the same as taking that leap. Even when we feel stuck on a treadmill, our brains are wired to avoid change in the face of uncertainty.
The best way to leap into new levels of success is to follow a framework that gives you the mindset and methods to succeed. I have developed a seven-step framework that has been used countless times to assist advisors looking to build a $1 million, 100-days-off practice, as well as help leaders of seven-figure firms scale their success to new heights.
Step one: Planning for success
“When the vision is clear, the decisions are easy.” Too often, advisors run their firms reactively without a clear plan for where they want to go, exerting a lot of effort in the absence of intention. I liken this to playing a high-stakes game of professional "whack-a-mole" (which seems to resonate with the advisory firms I speak with). Without a vision, it’s impossible to prioritize the right efforts and actions. Define what success looks like for you – how big you want your firm to grow, what kind of clients you want to work with, and the lifestyle you want to create.
Start by asking yourself these crucial questions:
- What kind of income and lifestyle do I want to create?
- Who are the clients I do my best work with?
Research Insight: According to a study by Harvard Business Review, businesses with a clear vision are 70 percent more likely to outperform their competitors.
By defining your ultimate goals, you'll set a clear direction for your practice, making every decision much easier along the way.
Step two: Positioning your firm
When you try to serve everyone, you compromise your ability to serve your clients well. Positioning involves narrowing your focus and identifying a niche to drive faster growth and deeper client value.
Ask yourself:
- Who is my ideal client, and what unique challenges do they face?
- How can I position my firm to stand out from the competition?
Research Insight: Firms that specialize in a niche market experience 50 percent faster growth than those that don't, according to a report by CEG Worldwide. Focusing on a specific niche allows you to become an expert in that area, which enhances your reputation and makes your services more attractive to potential clients.
Step three: Packaging your value
Packaging the value of planning and advice is the most ambiguous problem in the profession today. Your goal is to avoid sounding like Charlie Brown's teacher (wah-wah, wah-wah-wah) when explaining your value, but instead to define your value in a clear, concise, and compelling way.
Consider these questions:
- Does my message effectively communicate the real value I deliver?
- How can I better package my offerings to reflect my value to potential clients?
Research Insight: A Nielsen study found that 59 percent of consumers prefer to buy new products from brands they are familiar with. Clear messaging helps build that familiarity. Your goal is to craft a message that resonates with your target audience, making it easy for them to understand how your services can benefit them.
Step four: Promoting your practice
It’s not enough to be great at what you do – you must show up and stand out in a crowded marketplace. Promotion is about getting your message in front of the right people in the right way to create a steady pipeline of qualified prospects.
Reflect on these points:
- How am I promoting my firm, and is it reaching my ideal prospects?
- How can I best market my practice to consistently be in front of the prospects I want?
Research Insight: Businesses that prioritize blogging are 13 times more likely to see positive ROI, according to HubSpot.
Effective promotion strategies might include digital marketing campaigns, social media engagement, and attending industry events to network with potential clients.
Step five: Streamlining your processes
Leveraging processes to maximize advisor capacity and deliver deeper client value hyper-efficiently is the backbone of a profitable practice. Streamlining and systematizing your processes creates consistency and efficiencies in marketing, onboarding, and service delivery.
Evaluate your current processes by asking:
- Are my processes standardized, optimized, and consistent?
- How can I improve the consistency and quality of the client experience?
Research Insight: A Deloitte survey found that digitally mature firms are 23 percent more profitable than their less mature peers.
Implementing standardized processes not only saves time but also ensures a consistent and high-quality experience for all of your clients.
Step six: Building the right platform
The right technology stack is essential to running a modern advisory firm. A strong platform lets you automate workflows, enhance client experiences, and scale your operations in ways that deliver deeper value to clients and optimize margins for the firm.
Consider these questions:
- Am I using the best tools to leverage my time and support my firm’s growth?
- Is my technology helping me deliver a better client experience?
Research Insight: Investing in the right technology can drastically improve your efficiency and the overall client experience, making your firm more competitive.
Step seven: Investing in people
Having the right people in place to leverage your time and talent is critical to driving growth and optimizing your practice. Whether you're hiring your first part-time help or managing a growing team, the right structure and people are key to success.
Ask yourself:
- What tasks can I delegate so I can focus on higher-value activities?
- Do I have the right structure and people to grow my firm?
Research Insight: According to Kitces.com, financial planning firms see a 60 percent ROI boost on average when they have a well-defined marketing plan in place.
Delegating tasks and building a strong team will free up your time to focus on strategic growth initiatives and client relationships.
Real-life success stories
Take Adam, Kathy and Mike, for example, each of whom led their own practice. Before they leaped, Adam had been stuck at $225K for too many years. Kathy was doing okay but was burnt out from working 60-hour weeks. Mike was the leader of a growing eight-figure practice that had him constantly on call.
With a framework to follow, Adam, Kathy and Mike clarified their vision, took back their time, redefined their structure, streamlined their operations, delivered deeper client value, and accelerated their growth.
One year later, Kathy took 60 days off to travel to six countries. Adam followed the framework to five-times his practice. Mike generated seven figures in personal income while taking two months of vacation, even as his firm grew assets by double-digit percentages – and his joy exploded! All three leaped into their version of a wildly successful practice and a life they love.
Taking the Leap
Building a wildly successful practice and life you love isn’t just a pipe dream—it’s entirely achievable with a framework that aligns your strategy and structure in ways that set you and your practice up for success.
Stephanie Bogan is a leading business consultant and executive coach for growth-minded advisory firms, coach to Michael Kitces and a popular speaker and writer. If you’re ready to take the leap into new success, join our Nov. 14 webinar “How to Build a $!M/100 Days Off Practice w/50%+ EBOC at 1 pm EST.
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Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.