Predicting the future is futile, so the best option is to plan for what is in your control and prepare for what is out of your control.
In a “Building on Today’s Success” breakout session, smart advice was shared by Vanessa Oligino, director of business performance solutions at TD Ameritrade Institutional's LINC conference last week.
Beyond One’s Control
At the outset, Oligino addressed external forces that are mostly out of advisors' control. “It makes it difficult to create a business plan,” she said. For that reason, she advised the conference attendees develop scenario plans, with a best case, neutral and worst-case scenario.
“I had a Wharton professor that said, ’55 percent of what happens in your business is in your control. 45 percent is impacted in your industry,’” stated Oligino.
Of that 45 percent, she cautioned attendees to be more aware of what those ‘out of your control’ factors are so they can be monitored and then the business can react accordingly when change happens.
Possible Challenges To Growth
Her research found that on average 48 percent of referrals come from existing clients and 19 percent come from centers of influence. Additionally, the top 20 percent of clients generate 50 percent of the typical firm’s revenue. Advisors need to reassess how they can expand the pipeline of new clients. “Do you have some other way to replace that?" she asked re you experimenting with new ways to get more referrals?”
Oligino also addressed other issues advisors face when trying to grow their businesses. She pointed out the following list: market disruptions, succession, attracting and motivating top performers, maintaining culture, multi-generational wealth transfer, aging workforce, missed opportunities, efficiency, political environment, security market trends, and attracting younger investors.
How To Prosper