There is a relatively new breed of services that offer actual hard drive storage without the need of a local server or even a desktop computer. Services such as Box.net (www.box.net), Sugar Sync (www.sugarsync.com) or DropBox (www.dropbox.com) offer online storage at reasonable prices. The advantage of such services is the accessibility. You can access those files anywhere there is an Internet connection-a big deal for the advisor in a one-person office who might want to have access to all his files through a laptop or even a smart phone. DropBox and Sugar Sync are unique in that they can store the files on both the Web and your local computer, auto-syncing those files every time the computer is linked to the Web. Sugar Sync recently added the ability to use its services with the new Apple iPad.
Most of these services offer file-sharing features that permit a user to share a file or set of files with a collaboration partner or a client. And most of these services offer high levels of encryption and password technology to protect those files.
Differentiation: Advisors in one-person offices, in order to compete with larger practices, may need to decide how they can offer something unique: How compelling is your service or product and how is it sufficiently different from all the rest? To this end, specializing in a unique area of financial services can make a big difference, not only in how your firm is perceived but in how successful it is. Perhaps your one-person firm could become its own outsourcing service to other financial advisory firms. For example, a one-person firm might develop a specialty working with something like complex college funding issues or health-care issues. The firm could then turn around and offer those kinds of analysis or services through other advisors under a fee-sharing arrangement (if allowed). If the advisor writes on the subject, she could establish herself as an expert to be sought out by other advisors or the public. Using the media (in interviews or advertising) to talk about those services could lead to further success.
Ultimately, if the one-person firm wants to not only survive but thrive, the advisor may need to explore some or all of these things to minimize her operational costs and maximize her efficiency and profitability.
David L. Lawrence, RFC, ChFE, AIF, is a practice efficiency consultant and is president of EfficientPractice.com, a practice consulting firm based in San Diego, Calif. (www.efficientpractice.com). The Efficient Practice offers an advisor network and a monthly newsletter.