Building Leverage and Capacity E-Book

Mark C. Tibergien

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Serie: Wiley Global Finance Executive Select
• Sprache: Englisch

Seitenzahl: 34

Veröffentlichungsjahr: 2010

Beschreibung

One of the most important strategies for a successful investment advisory or wealth management firm is how to manage growth and profits. Once an advisory firm begins to add any staff, it has started to accelerate its growth. It will need to monitor and measure performance, coach and counsel people, produce an increasing amount of revenue to cover the added overhead, and invest in more technology solutions, office space, and employee benefits. Author Mark Tibergien, named by Investment Advisor as one of the most influential people in the industry, provides a comprehensive analysis of: * Managing the rising costs of an advisory firm * Management and quality control * Client satisfaction * Training staff Filled with models, statistics, and case studies, this chapter from Practice Made Perfect looks at the client-service approach, infrastructure, and compensation techniques necessary for an advisory firm to grow into an elite practice.

Leseprobe

Contents

Cover

Title Page

Copyright

Chapter 4: Building Leverage and Capacity

The Entrepreneurial Crossroads

Cornerstones of the Professional Practice

Models That Work

Leveraging Your Affiliations

Copyright © 2005 by Mark Tibergien and Rebecca Pomering.

Disclaimer. This content is excerpted from Practice Made Perfect: The Discipline of Business Management for Financial Advisors, by Mark Tibergien and Rebecca Pomering (978-1-576-60172-3, 2005), with permission from the publisher John Wiley & Sons. You may not make any other use, or authorize others to make any other use of this excerpt, in any print or non-print format, including electronic or multimedia.

Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

This chapter explores how an investment advisory or wealth management firm can manage growth and profits. Once an advisory firm begins to add any staff, it has started to accelerate its growth. It will need to monitor and measure performance, coach and counsel people, produce an increasing amount of revenue to cover the added overhead, and invest in more technology solutions, office space, and employee benefits. Author Mark Tibergien, named by Investment Advisor as one of the most influential people in the industry, provides a comprehensive analysis of:

• Managing the rising costs of an advisory firm

• Management and quality control

• Client satisfaction

• Training staff

Filled with models, statistics, and case studies, this chapter from Practice Made Perfect looks at the client-service approach, infrastructure, and compensation techniques necessary for an advisory firm to grow into an elite practice.

Derived from Tibergien, Mark and Rebecca Pomering. Practice Made Perfect: The Discipline of Business Management for Financial Advisors. New York: Bloomberg, 2005. 978-1-576-60172-3; 256 pp.

978-1-118-00657-3 978-1-118-00658-0

4. BUILDING LEVERAGE AND CAPACITY

The Challenge of Growth

SINCE THE EMERGENCE of the independent financial adviser in the 1970s, many practitioners in this business have characterized themselves as entrepreneurs. Since they're no longer employees of a parent organization, the notion is that they are, in fact, business owners. They have the same risks and responsibilities as those who leave the cocoon of an employer-based organization and begin their own enterprise. In reality, many of these financial advisers are not entrepreneurs; they are simply self-employed. What's the difference?

Entrepreneurs start a business and build it into an organization that invests in people, systems, and branding. Self-employed advisers, on the other hand, consider themselves employees of their own business, not investors in that business. These firms are operated by individuals who avoid putting money into their business, respond and react to opportunity, and consciously limit growth primarily because they have an aversion or fear of working with other people. That's not to say one approach is better than the other; it's a fork in the road. The right path to take depends on each individual's personal definition of success.

Is this debate merely verbal fencing? Not entirely. By committing to being true entrepreneurs, advisers make a conscious decision to invest in infrastructure that allows them to leverage off of other people, systems, and processes. In other words, they commit to building an enterprise that is not totally dependent on its owner.