Book review - Run It Like a Business: Top Financial Planners Weigh in on Practice Management
Run It Like a Business, by Richard J. Koreto
- Chapter 2: Bits & Bytes
- The SEC & NASD have strict rules for electronically storing and backing up client records.
- PDA programs are available to download from DST or another aggregator using E-Z Data's client data system.
- Asset Management Software.
- Centerpiece is owned by Schwab
- Techfi by Advent
- Chapter 3: Know Thyself
- Worth magazine has an annual list of top financial planners that serve wealthy clients.
- Most people just can't start with high net-worth clients
- Fee-only is more popular with wealthy clients
- NAPFA is a fee-only association
- Create a pie-chart of your income streams
- The key to growth is getting the RM's in place to handle clients. One example was 6,500 clients handled by 18 planners (361 each).
- Broker-dealers are getting nervous because an increasing amount of planners are going fee-only.
- Chapter 4: Sell Yourself
- "With a little effort, you can become known to both local and national publications. Top planners have found these connections pay off. 'The press has bee among our best allies.'"
- Press release. Get quoted.
- Write articles. Local paper. Magazines.
- Public speaking.
- Electronic newsletters
- Chapter 5: Master of the House
- If you're in the affluent marketplace, then 60 to 90 clients is the optimal number.
- Hire the necessary administrative staff to deliver the wow.
- Hire an office manager.
- Delegation is not abdication.
- Give away a slice of your job description.
- Do we know any other top CFP's?
- The planner is the main cog. Hire around them to make sure they are just planning.
- One simple rule: our financial advisors must devote 100% of their time either talking to clients or preparing to talk to their clients. Everything else is delegated to support staff.
- Adding people
- The next generation of CFP's. They're well grounded in basic financial planning knowledge, but need to learn how to build a plan and work with clients.
- Don't let a client think they've been "demoted," because they no longer speak directly with you but with a new associate, for example. Assure your clients that you are still the one behind the scenes, that you are still looking out for them.
- Internship program
- Chapter 6: Schmooze or Lose
- You have to show your clients that they are important
- CRM. Keep track of all client contacts. Plan regular visits. Keep track of HOW people want to be contacted.
- Reach out with a blog
- Schedule time with wealthy clients monthly.
- Email newsletters can help you stay connected.
- High net worth clients are busy and expect a lot of personal attention.
- Chapter 7: Doing Well By Doing Good
- Volunteerism can really buff your image, but it has to be honest.
- You've got to perform well for your clients if you're handling their investments.
- Many professional organizations have formal assistance for financial planners to give back.
- Page 175 has a good sample conversation about how to introduce a new planner to a client without making them feel like they're being handed off to a 2nd tier person.
- "I will be the one working with you primarily, but xxx will be working with you as well."
- Chapter 8: The University of Life
- www.lifttheburden.com is an excellent source for a RIA.
- Read a lot to stay up with market trends.
- Chapter 9: Building an Empire and Selling It
- David Grau, president of Business Transitions, with runs FP Transitions, a Website--indeed a system--for buying and selling FP practices. No planner should try to sell a practice without having a look at the FP Transitions site and considering them as a broker for the transaction.
- Advisors are already up to 2x recurring revenue for their practice.
- "You are buying future income streams, with relatively low overhead."
- The assumption is that the seller with deliver those clients with no additional costs for doing this.
- Includes a non-compete from the seller.
- Appendix
