Planning can include what to do with lower tier clients to defining the steps to acquire a new firm to freeing up time for advisors.

Verchinski pointed out that almost half of advisors do not have a plan in place. Further highlighting the potential for improvements, Verchinski noted that about three out of four advisors do not have client acquisition goals.  “Every firm should be starting to plan out their 2015,” he said.

Growing Organically

The most interesting observation during the presentation is that “top performers” grew their revenue by 50 percent more than other advisors in a study that looked at the growth in 2010. This was attributed to the top performers taking advantage of market turmoil, because they had the skills, infrastructure and processes in place. 

Another area for improvement is the prospect close rate. Many firms are batting one out of two, said Verchinski.  “If you need five clients a year, that means you need ten prospects. That is one new prospect every five weeks.”

To make improvements, the prospect close rate should be improved, starting with the discovery process. To do this, an investment is needed in staff and time should to be dedicated to find out what truly matters to the client. The focus should be identifying a greater number of prospects and improving the pipeline management.

Verchinski pointed out that many firms need to focus on their existing clients and increase their wallet share.

To improve client referrals, clients need to know who an advisor wants to work with and they have to be able to explain the value and services provided.  Verchinski suggested doing roleplay and video recording these conversations to improve communication skills in this area.

When it comes to improving marketing, Verchinski boiled it down to client segmentation and a clear message that is targeted at the ideal client and household. He also believes advisors are not great at having a unique value proposition.

Growing Inorganically

When it comes to mergers and acquisitions, he said, “The importance of the plan can’t be understated.  You can increase the value of your firm by just having a plan in place for inorganic growth.”

In one case, he saw a firm hire five full-time recruiters that sourced 400 leads a year. Even with that volume, they only brought in five advisors.