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.
