As part of that assessment, firms should identify their strengths and weaknesses, particularly in the areas of marketing and sales. Some firms are marketing-oriented but have weak or inconsistent sales efforts. Others are more sales-focused with minimal resources committed to marketing. For smaller firms with ambitions to grow their AUM, the two cannot be mutually exclusive. They must work together under a cohesive strategy for optimal results.

You must then evaluate your target markets using your sales data and client databases. Who are our existing clients, and why are they choosing to do business with us? Has our target market or the persona of our ideal client changed? Should we be diversifying our target markets, or do we need to more narrowly define one? 

It is also important to be aware of new technological advancements that can significantly impact your sales and marketing efforts. If you are not using the latest technology to reach your target market, you may be missing out on opportunities to grow your business.

Then you must revisit your story. Even a well-conceived strategic plan will not help you if you do not have a good story to tell or an effective way to get your story out. Firms must be able to differentiate themselves in a way that goes beyond a branding statement or value proposition. Your story needs a comprehensive and compelling narrative that clearly explains what you aim to achieve and why your firm is uniquely qualified to deliver it. It should speak convincingly to your target prospects about what they can expect to receive from your firm that they cannot get from other firms. With the answers to these critical questions, you can prioritize your vital issues as you begin developing your sales and marketing plan. 

Hortz: How do you hone this planning process into a strategy? 

Sondhelm: It starts with setting clearly defined goals for your sales and marketing efforts. I recommend the SMART process for setting goals. They must be specific, measurable, achievable, relevant, and time bound. For example, you may aim to increase sales revenue by 20% in the next quarter or generate 500 new leads per month.

Second, you develop your strategy based on your goals and the critical issues you fleshed out in your assessment. The strategy outlines the tactics and activities you will use to achieve your goals and address critical issues. For example, your strategy may include creating targeted marketing campaigns, improving your website's user experience, or training your sales team on new techniques. 

Once you have developed your strategy, it is vital to get buy-in from all levels of your firm by clearly and thoroughly communicating to all stakeholders, from senior management to front-line employees. Setting broad objectives, such as increasing AUM by 20% in the first year, leaves too much open for interpretation as to how it actually gets done.

It is crucial to secure the commitment of top-level executives with the authority to allocate resources and make critical decisions. They should understand the importance of your strategy and be willing to provide the resources needed to make it happen. That includes ensuring you have the right people with the necessary skills to execute your strategy and enough budget to fund your initiatives.

It is also essential to include a process to regularly review your plan for effectiveness and make adjustments, as necessary. This can involve testing different campaigns, channels, and messaging to determine what works best. Also, monitoring your key performance indicators (KPIs), soliciting feedback from customers and employees, and staying updated with changes in the market and competitive landscape. Sometimes changes in the market or competitive landscape can sneak up on you because they are constantly evolving. It is vital to keep your finger on the pulse of the marketplace.