professional practice management · present proposal operations & administration agree on...

Professional Practice Management

Ways to improve your income in a post-RDR environment

Presented byAnton Swanepoel

Professional Practice Management

Ways to improve profitability in a post-RDR environment

Presented byAnton Swanepoel

Retail Distribution Review

List your 3 biggest concerns

Retail Distribution Review

You are today where your thoughts have brought you;

you will be tomorrow where your thoughts take you.

James Allen

Ways of improving your income

Client’s Life & Financial goals

Financial Administration

Retirementplanning

Estate planning

Wills &

Estates Financial planning

TaxPlanning

Financing strategies

Budget & Debt strategies

Outsourcing

FSP

Additional income generating opportunities

1. Enhancing your value proposition

2. Charging fees for certain services

3. Adding value-added services / referral fees

Perspective: The game changers

1. Innovation

2. Technology

3. Competitors

4. Demographics

5. Regulatory reform (RDR)

6. Customer expectations & requirements

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0 1 2 3 4 5 6 7 8 9 10 11 12

Year

Rookies

World-class

Below average

Good

Average

RDR is about creating world-class businesses

Absolutes

Interpretation

Assumptions

Importance of perspective

Client Experience FSP Business

Professional introduction People / HR / Development

Gather client information Structure

Agree on service to be rendered Systems

Policies and procedures

Present proposal Operations & Administration

Agree on solution Marketing

Implementation Risk management & Compliance

Ongoing advice and services Financial Management

Income Profit/Loss

Business

Shareholder Value=Conduct analysis & prepare report

This is the game financial advisors play

Top 10 challenges of advisory firms

1. Lack of capacity to service clients

2. Building value in the practice

3. Keeping pace with technology

4. Developing specific expertise internally

What takes up your time?

20%

10%

100%

30%

40%

50%

60%

70%

80%

90%

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Ge

ne

rati

ng

inco

me

Client

engagement & service

Management Compliance Administration

Income generating

Cost to company

Top 10 challenges of advisory firms

1. Lack of capacity to service clients

2. Building value in the practice

3. Keeping pace with technology

4. Developing specific expertise internally

5. Time management

6. Improving efficiency

7. Managing growth

8. Getting better clients

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Key challenges: Service model & pricing

Your target market

✓Business owner

✓Professional

✓Earns R 50 000 p.m.

✓Married

✓Non-smoker

✓Respectful

Importance of client segmentation

20%

10%

100%

30%

40%

50%

60%

70%

80%

90%

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

% o

f R

even

ue

Wealthy

Affluent

Small clients

Proportion of clients

Top 10 challenges of advisory firms

1. Lack of capacity to service clients

2. Building value in the practice

3. Keeping pace with technology

4. Developing specific expertise internally

5. Time management

6. Improving efficiency

7. Managing growth

8. Getting better clients

9. Offering value-added services

10. Maintaining a life outside of the business

How to improve your income?

“The purpose of business is to create

and keep a customer.”

- Peter F. Drucker

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Your clients’ experience?

• Integrity

• Competence

• Sound advice

• Service model

• Value proposition

• Delivering consistently

Turning Clients into Raving Fans