Top tips that Financial Plannerscan learn from Accountants about running their firmsIan PickfordPartner Mazars LLPDirector Mazars Financial Planning Ltd
Mazars Employee Benefits Ltd
In some ways, accountants run similar businesses to financial planners, especially in the new adviser charging world.
Accepting the important differences in their professions, this session considers what we can learn from accountants’ business practices.
Content
• Structures, teams and people
• Succession planning
• The ‘Business Model’ and how to charge
• Professional ethos and training
• Client retention
• What do accountants do right and what to avoid
Structures, teams and people
Your structure should define your team . . .not your team define the structure
The best goalkeepers don’t usually make the best centre forwards
Structures, teams and people
• The ‘professional services ‘pyramid’
Highest Staff Cost
Numberof staff
Structures, teams and peopleHigh cost people should be undertakinghigh value functions• Do you have high cost staff undertaking functions that lower cost staff
could deliver?
• Push as many low cost functions down the team
• Do your high cost staff deliver value to the business?
• Low cost staff should be highly utilised
• Where do your high cost staff spend their time and what are the results?
• What KPI’s run your business and how are they communicated to staff?
• What does your business structure do that stops individuals maximisingtheir output?
• Productise high frequency and low value processes
Succession Planning
What are you and your business about?
• Custodian
• Are you looking to cash in your ‘chips’
• Choice may lead to a different course of action
• Although there will be a lot of similarities:
• Build a brand
• Succession structure
• Have something to sell!!!
Succession Planning
What are you and your business about?
• Have a business that is dynamic
• Streamline your business
• Remove waste and in-efficiencies
• Maintain and demonstrate good cash flow
• Show improving profit and growth
• Be place people want to join
• Training plan and graduate/new starter scheme
Business model and how to charge
What are your KPI’s?
New works winsManage uninvested cashDebt controlBilling
Identify the KPI’s that make your business work and manage them religiously
Business model and how to charge
You need to know what it costs to deliver your client work
HOW MUCH DOES IT COST YOU TO GIVE ADVICE?
Do you know?
Business model and how to charge
FeesHave a model that suits your proposition
•Time cost•Fixed•% FUM•Contingency•Success•Or a combination
Business model and how to charge
VATRule of thumb
Advice only VAT-ableImplementation of financial productsnon VAT-able
Get professional advice on your client service agreements and fees
Business model and how to charge
Do not start work without a service/fee agreement in place, which states explicitly:
•What you will do
•What the client is responsible for
•What the fee is and the basis of calculation
Don’t do anything outside this without amending the fee
Business model and how to charge
Debtors
Businesses close down not because of a lackof business but a lack of cash flow
Collect your debts
You are not a charity……. a non payeris not a good client
Business model and how to charge
Manage your debtors
•Have an agreed debtor policy
•Don’t be afraid to go legal
•Use tools to collect feese.g. DDM’s, platforms etc.
Professional Ethos and Training
Are you a ‘Professional Adviser’ or ‘Knowledgeable Salesman’?
Selling is at the ‘heart’ of what you do, but don’t give away your Intellectual Property
Do the right thing………….if you do why shouldn’t the client pay!!!
Professional Ethos and Training
Training
Past focus has been on Qualifications
New world these are a given!!!!!!!
Professional Ethos and Training
Maintenance and growth training plan for your team which fits your business objectives
Important to train ‘soft skills’•Fee negotiation•Marketing•Proposition consultancy•Meeting skills•Technology
Client Retention
1.Value ‘2 way’ relationships
2.Free clients are not ‘2 way’
3.People tend to value what they pay for
4.Have service agreements and deliver to them
What do Accountants do right and what to avoid
Right
1.Hierarchy
2.Manage utilisation and cash flow
3.Emphasis on doing the right thing
4.Recognise ‘graduate training’
What do Accountants do right and what to avoid
Avoid
1.Can have a narrow view of the world
2.Advice ‘comfort zones’
3.Can have ‘silo’ mentality
4.Underestimate the value of soft skills training