Efficiency lifts business value: Shirlaw
Financial planners need to look at their business as an asset instead of just a business if they want to maximise their take out, according to Shirlaws managing director, Darren Shirlaw.
Speaking at a recent Financial Planning Association (FPA) seminar titled 'Maximising the takeout in your financial planning business' Shirlaw says planners need to seriously change their attitude to their business.
"If you want to sell your house you find the best real estate agent, invite your friends around for the auction and have champagne - financial advisers should start looking at the same type of tactics when selling their business," he says.
Shirlaw says planners need to detach themselves from structure and work on ways of dividing workloads if they want to get the best price for their business.
He says there are many planning businesses in the industry that concentrate too heavily on administration rather than the efficiency of their group.
"Get right away from goal setting. It is a traditional and old business approach, and we see businesses going through dips when they start setting goals," Shirlaw says.
"Most people spend most of their day getting so frustrated by platforms, such as their back office business and IT, that they lack ideas in company growth," he says.
He says the use of such strategies can mean the difference between a highly profitable business which will sell quickly in the market, and a business that will not sell at all.
Recommended for you
The month of April enjoyed four back-to-back weeks of growth in financial adviser numbers, with this past week seeing a net rise of five.
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With the election taking place on Saturday (3 May), Adviser Ratings examines how the two major parties could shape the advice industry in the future.
