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As businesses grow they run into a bunch of common issues but the
management information they collect often doesn't provide them with any real insight
Into what those issues are and how to fix them. As the old saying goes
Turnover is vanity, profit is sanity
But when we look at the input information that firms select
And they usually have reams of the stuff with numbers coming out of their ears
It's all stuff around the sales pipe line and business. Whilst that is good,
And you need to keep it, it doesn't really get any deeper beneath the surface
and because that's the only information that gets kept, the solutions
that businesses put forward, even when we start to have a deeper poke around
Beneath the numbers, the solutions that come forward are quick fix solutions. Things like;
if we could write anoter two hundred grand business, all our ratios would be fine
No that's just a pipe drain. If you do an extra two hundred grand of business
All of your growth, costs and staffing, instructural issues that come with it, will just eat up.
All of that extra revenue and usually firms are no more profitable, all they are is
now a larger seven headed beats of a business
Its just more difficult to manage and still not make the money that you want to make.
The second solution comes up, if we could just hire and extra body
let's let's throw an extra person
At the back office
And that will resolve our issues. Now it won't usually, it doesn't work
It's a process problem usually, not just the staffing numbers, and if you just keep adding staff
You can do more numbers but not make more numbers at the end of the day
The third solution is if we could just acquire that bulk of business or new business
with this one is being really really careful
acquisitions can work
I know lots of firms that have made it work, but they will tell you that
If you are just going to jam on a whole new bunch of clients onto a foundation of sand
Where your processes and your staffing instructions are not in great order
You are just creating a world of pain for yourself
So you need to get that right first
The bottom line is, that most of the challenges facing Financial Planning firms
Are around processing issues and staffing instructions
And you have got to get those right!
To give yourself the business break through that you are looking for
More of the focus needs to be on
Collecting the right financial information and having more of a focus on
Fixing the staffing instructural process
Rather than thinking you can just sell you way out of trouble
If you have enjoyed this video, feel free to like it and share it with colleagues
Or others in the profession
And if you have anything to add on this, things that you have tried
Or where you are getting stuck
Leave me a comment below, and I will come straight back to you