Time for that annual checkup

Here are five potent pills for any ailing business

Here are five key things to consider to improve your bottom line.

• Client Management Systems

  A survey by Colorado-based Multi-Financial Securities Corporation reveals only 67% of advisors actually use CRMtools. A surprising 26% rely on paper, while 7% use spreadsheets.

  Use technology to stay in touch with clients this year. Explore electronic options to provide financial reviews, since better reviews are good for compliance purposes and can uncover missed opportunities for your clients. When choosing a CRM system, keep in mind:

  • The number of users who will need access to your client database. This is important when deciding how many licences to purchase, as some systems limit use to one or two users.
  • Many programs are moving to a cloud-based platform. If you’re not comfortable with this format, look at a program that stores information on your local computer system.
  • There may be a lot of work initially to personalize your system, including transferring existing prospect and client information.

  Popular CRM tools include Act!, Microsoft CRM Dynamics and Sales Force.

• Client segmentation

  Many financial businesses have done an exceptional job segmenting their client base; however, most fail when it comes to the services they offer. Fewer than 47% of those surveyed offer different services for each segmented group.

  Given the effort it takes segment clients, why would you offer each one identical service?

• Business planning

  Many financial businesses pride themselves in the plans they put together for their clients, but approximately 40% have no plan for their own business for the next 12 months.

  A solid business plan can help determine the most appropriate revenue model for your business. Most often, businesses struggle trying to figure out if they should have a commission model, fee-based service or a combination of the two. There’s no correct revenue model, each warrants consideration depending on how it relates to your business.

  The numbers speak for themselves. According to the survey, businesses that had a formal plan recorded a 47% higher revenue increase versus those that didn’t.

• Succession planning

  Many financial professionals talk to clients about the risk of disability, critical illness or death, but fail to realize these same unforeseen events could strike them, and at substantial risk to their business.

  Of the businesses surveyed, only 19% had a clearly documented succession plan for their business.

• External advisor/coach

  Everyone needs someone to provide objective advice. Yet fewer than 45%of advisors reported having a coach with whom they met with more than once a year.