Get Ready for 2010

It is that time of year again. That time when advisors should start thinking about planning for next year and putting together a written business plan. Well, at least you think that would be the case.

Amazingly enough, many advisors do not do so. Various studies have pegged the number with a plan ranging from only 15% to 40%. So, why don’t most advisors have one? The usual answers are that some advisors don’t feel they need a plan, they tried before and the plan didn’t work or they just don’t have the time to do so. It is ironic that these are often the same excuses their own clients give about not putting their financial, business succession or estate plan into place.

What these advisors don’t understand is that by committing to do their own business strategy – including a review of their own personal financial plan – they will have a much easier time convincing their clients about the value of the exercise.

Formulating an effective business plan is not as difficult as one might think if you follow several key rules that we have outlined below.

Write it down

A recent study about goal-oriented objectives found those who did not write their goals down achieved them only 50% of the time while those who did so achieved them 75% of the time. The individuals who not only made not of their goals but made action commitments and gave regular progress reports to a friend achieved their objectives a whopping 95% of the time!

Tie your business and personal goals together

A 2007 study by Advisor Impact on productivity found that the most effective advisors tied their personal goals to their business goals. These advisors were also earning 25% more than the other advisors in the study.

Let things be dynamic

It is not helpful to create a plan and then place it on a shelf or in your filing cabinet. Times are quickly changing and we all need to be able to adapt to new opportunities and challenges. By reviewing your plan at least on a quarterly basis, you will be more likely to accomplish your goals.

Start with the foundation first

Many take a tactical approach to planning. Goals like “create a website,” or “sell more critical illness insurance” might be counterproductive. Just as you wouldn’t take a product approach with your clients, you should start with the foundation of your business. By spending more time doing a thorough analysis of your business – ideal client, your team resources, revenue breakdown – you can then determine a strategy to put the ideal tactics in place based on your objectives for the year.

Keep it simple

The planning model at The Personal Coach is a simple 4 step formula.

• Start with a review of the previous year.
• Create your vision and objectives for your practice for the coming year.
• Determine your action plan to meet your objectives.
• Set up a monitoring system to keep you on track throughout the year.

So how do you go about getting a plan in place? The first step is to make a commitment to doing it – nothing happens until you block the time in your schedule for planning. Depending how long you have been in the business and how big your team is, this could be anywhere from a few hours to a couple of days.

Finally, in order to have the best success in implementing your plan, find someone you can share your plan with and be accountable with your action plans. A coach who is an expert in your business is your secret weapon in implementing your strategy. If you are not lucky to have one, share your plan with a colleague, study group or even your spouse. Making a commitment to getting a plan in place will help make 2010 your best year ever.

For more information, tune into the upcoming webinars in December/January which will teach advisors about how to reach their potential in the coming year at www.thepersonalcoach.ca.

---

April-Lynn Levitt is a Calgary-based coach, and Juli Leith is a Waterloo-based coach. They provide one-on-one customized coaching to financial advisors.

---

April-Lynn Levitt, Juli Leith