Strong business plans bolster companies during crisis
The businesses within the financial services industry most likely to survive in tough economic times are those that are well established with strong business plans, according to Wealth Insights managing director Vanessa McMahon.
Speaking at the Money Management State of the Industry breakfast this morning, McMahon said businesses that are well established distinguish themselves from their smaller counterparts.
“Scale is the name of the game”, McMahon said.
McMahon said a decent amount of time in the market is “everything”.
Those that have been in the business for 10 years or more were generally doing very well, so too were those with a constant stream of clients.
Businesses that survived also often have strong written business plans, she added.
Not surprisingly, low sentiment was largely affecting those advisers who had recently bought a practice or started a practice in the last few years — companies which still relied on “new business walking in the door”, McMahon said.
Recommended for you
With an advice M&A deal taking around six months to enact, two experts have shared their tips on how buyers and sellers can avoid “deal fatigue” and prevent potential deals from collapsing.
Several financial advisers have been shortlisted in the ninth annual Women in Finance Awards 2025, to be held on 14 November.
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
