February 24, 2017
THE FUTURE OF BUILDING A FINANCIAL ADVICE BUSINESS
One of the most important questions for future advisors, current advisors, Dealers, MGAs, EMDs, manufacturers, etc . is whether an advisor can build their business into a profitable operation moving forward – if not profitable – NOBODY WINS (except maybe the banks).
Think about the challenges of growing your business organically today:
- Cannot cold call
- Cannot cold email
- Few “Agency” systems for training / hand holding
- Commissions on “Trial” – and the trial is rigged
- Paperwork is overwhelming
- Compliance costs and administration increasing
- Dealers and MGAs squeezing advisors ESPECIALLY newer smaller advisors
- So called committees outfitted with individuals whom have never been on the front lines determining that what is worst for advisors must be best for consumers
- The list goes on …………………
What happens if you cannot grow your business?
- Dealers are reducing payouts dramatically
- Dealers are cancelling license sponsorships regularly
- Advisors with $10 million AUM are earning $25 – 30,000 BEFORE business expenses
- Young people will not come into business it they don’t see a viable business enterprise
- What is the future of the Industry?
Let’s be frank here – Large Dealers, MGAs, other companies in the middle of the distribution chain DO NOT CARE about hiring, developing or nurturing new / young / small advisors. So senior advisors should ask them self – “WHO WILL BUY MY BUSINESS IN 5+ YEARS? Those same companies are working at holding down prices at the expense of the older advisors and either passing those clients to another successful advisor (keep assets in house) OR a salaried employee. Look at the Banks business model – it is wise for those businesses that have the economies of scale to attempt to duplicate that model – cause it works. Who loses? In my opinion the industrious hard working advisors and the consumers. Banks don’t phone to remind consumers to make a RRSP contribution or increase their PAC.
IS EVERYTHING DOOM AND GLOOM? ABSOLUTELY NOT.
In United States there is one business model that is more successful than any other – Teams / Partnerships / Corps with several owners – all of these whether they function as an Ensemble or as a Silo structure. Why? The perfect model for economies of scale, synergy and division of labour is size – more assets, more clients and more advisors results in more growth in profitability.
WHO ARE YOU GOING TO CALL? …………………. QUEENSTON!
- 1. The first step is a valuation – Queenston ‘s speciality.
- 2. The second step is finding the right fit – we can help,
- 3. The third step is structuring the best win-win deal – Queenston has done more deals than anyone in Canada,
- 4. Finally design the best Business Model for your business – the best model for you and your future – talk to Queenston.
We have started a Recruiting Program to find what you are looking for – whether you have a 1 year exit strategy or 40 year acquisition strategy.
In the meantime – we have several advisors under contract all over the country with a 3 – 7 year exit strategy looking for advisors wanting to acquire a working relationship with a younger advisor. CONTACT ME NOW FOR MORE INFO at email@example.com
The future of growth is working with qualified hard working partners – Queenston can help you!!
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