Having a trusted “number two” or a second-in-command to handle daily operations is critical for financial advice leaders seeking greater work/life balance.
According to Daniel Byrne, partner at national accounting and advisory firm Pitcher Partners, business owners of small-to-medium practices are managing a variety of responsibilities on any given day, particularly in financial advice.
This includes working in the business, such as meeting with clients and managing staff, as well as working on the business, such as mapping out the strategic vision.
With all this on their plate, a key way for financial advisers to future proof their business is to identify a trusted staff member, known as a “number two”, Byrne recommended.
“The key to managing this complexity is having a reliable ‘number two’ – a trusted second-in-command who can handle daily operations and strategic execution effectively. No leader is an island – even the most capable benefit from support,” he explained.
These professionals can help an adviser or business owner streamline operations, allowing leaders to delegate responsibilities so they can focus on enhancing profitability and growth.
Byrne added: “Having the right number two can drive innovation and market impact by expanding your market and customer base, developing and launching new products and services, and exploring and entering new segments and regions.
“They can also play a role in fostering a culture of creativity and learning, and they can facilitate effective change management by embracing change that comes with innovative business strategies.”
This is particularly important for single-adviser practices who are considering hiring additional staff to prevent key person dependency and regain greater work/life balance. Sole advisers have shared they feel constrained and unable to step away from their business or that their clients typically prefer to only deal with them as their financial adviser.
Speaking on this topic recently, Andrew Saikal-Skea, financial adviser and founder of Saikal-Skea Independent Financial Advice, said: “It’s very hard to go on holiday or just take any time off from your practice, because you’re the only person that can give advice.
“The advantages of scaling up undoubtedly give you cost-efficiencies through economies of scale. But even more than that, you get a lot more flexibility to be able to give a better service for your clients and there’s someone else there when you’re away, so you can actually have a better life as an adviser.”
Similarly, Byrne recognised the positive impact this can have on business owners’ personal and work lives. He elaborated: “A reliable number two allows you to focus on strategic goals and the big-picture parts of the business, as well as improving your work/life balance and allowing more time for things outside of the professional sphere.”
Moreover, a second-in-charge is also vital for succession planning and can help safeguard the legacy of a business if the owner begins to plan their future exit. Succession planning has historically been a weak spot for financial advice practices but is critical for long-term success.
Money Management has written previously that 40 per cent of firms have not nominated a successor and say they don’t need one, while 30 per cent say they need a successor but haven’t begun the search.
This can present problems in small firms when a leader seeks to retire and has no number two to take over from them, particularly as succession can take three to five years to enact successfully.
Byrne concluded: “Finding and nurturing the right number two is crucial for maximising your business’s potential and achieving long-term success.”
