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10 Mistakes Advisors Make In Their Practice

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By: Kirk Hulett

  1. I do tasks I do not need to do
    - Forget to delegate
    - Administrative tasks, clerical tasks, returned phone calls, basic client service
    - Takes too long to train, so I’ll just do it
    - Expertise Partnerships
    1. CPA’s
    2. Attorneys
    - Ask yourself: Does it take my unique knowledge and experience to do this?

  2. I do not add staff when I need them
    - Do the cost benefit
    - 50% Solution

  3. I don’t treat my best clients any different that my worst clients
    - Competition for your client is fierce. Many services you currently provide can be obtained on the internet.
    - Build loyalty
    - Differentiate yourself in market
    - Examples: dinners and lunches, gifts, hand written notes, specially prepared performance reports or market data

  4. I have no business goals and I have no plan to achieve my goals
    - I have no business plan or I don't refer to the one I have
    - Business Plans do not have to be complicated
    - How does your staff know what is important?
    - I am not scheduling time to work on my business

  5. My Practice Has No Workflow or Documented Procedures
    - Keeping everything in the Advisor's head
    - Inconsistency
    - Manage by crisis
    - All ways re inventing the wheel
    - No capacity to grow
    - Stressful, lack a feeling of accomplishment
    - Must systematize practice before it can be valued for sale.
    - What happens when your assistant is absent or leaves

  6. I don’t ask my clients for referrals
    - Easy and cheap method to prospect
    - Exchange additional value for referrals
    - Tell your clients what an ideal referral is

  7. I do not reward and recognize my staff or my clients
    - “They know they are doing a good job if I don’t say anything bad.”
    - Non-monetary compensation – car washes, time off, gift certificates
    - Monetary bonuses – link to goals of practice

  8. I don’t communicate clearly and consistently with my staff
    - Clearly, consistently
    - Don’ task staff to read you mind; leave a trail of breadcrumbs
    - Don’t interrupt workflow unless it is urgent

  9. I do not utilize technology and on-line applications in my office
    - 30 minutes of wasted time each day costs you $600-$900 per year
    - That pays for a PC or 6 hours of computer training
    - I don’t have time to learn how to use it
    - No capacity for growth
    - Your clients are on-line
    - Use 25% of the capabilities

  10. I do not have a succession or a contingency plan for my practice.
    - What is you become disabled or die?
    - What is a flood, or fire, or storm wrecks your business?

Kirk J. Hulett, MS is Senior Vice President of Strategy and Practice Management for Securities America, Inc. an innovative independent broker/dealer based in Omaha, NE. Kirk leads an internal consulting firm that assists financial advisors on practice management issues. He has extensive experience in employee compensation, human resources, and strategic planning. He is a regular contribution to ADVISOR TODAY and FPA SOLUTIONS magazines and a frequent speaker to financial services industry groups.