Local clients key to strong planning practices

Forty-five per cent of Australian businesses including financial planning practices see the majority of their sales derived from local customers, according to National Australia Bank (NAB) research.

Many of the stronger financial planning practices are very good at engaging their local communities, said NAB financial planner banking national manager Malcolm Arnold.

Local customers are essential when looking to buy a financial planning business, as "a good customer base is an important criteria and strong community support forms part of that", Arnold said.

The research also showed that 41 per cent of Australian businesses believed the success of their business was dependent on the success of neighbouring businesses.

However, NAB said those businesses that relied on their local community for continuity weren't making the most out of potential connections.

While just 16 per cent of Australian businesses advised they were members of a local business network, 64 per cent of members of such networks reported the ability to build greater business connections as a consequence.

For practices, it's vital they tap into local networks to take advantage of business-building opportunities and capitalise on the natural synergies that exist between businesses, a NAB statement said.