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Professional Practice Management
Ways to improve your income in a post-RDR environment
Presented byAnton Swanepoel
Professional Practice Management
Ways to improve profitability in a post-RDR environment
Presented byAnton Swanepoel
Retail Distribution Review
List your 3 biggest concerns
Retail Distribution Review
You are today where your thoughts have brought you;
you will be tomorrow where your thoughts take you.
James Allen
Ways of improving your income
Client’s Life & Financial goals
Financial Administration
Retirementplanning
Estate planning
Wills &
Estates Financial planning
TaxPlanning
Financing strategies
Budget & Debt strategies
Outsourcing
FSP
Additional income generating opportunities
1. Enhancing your value proposition
2. Charging fees for certain services
3. Adding value-added services / referral fees
Perspective: The game changers
1. Innovation
2. Technology
3. Competitors
4. Demographics
5. Regulatory reform (RDR)
6. Customer expectations & requirements
Copyright
0 1 2 3 4 5 6 7 8 9 10 11 12
Year
Rookies
World-class
Below average
Good
Average
RDR is about creating world-class businesses
Absolutes
Interpretation
Assumptions
Importance of perspective
Client Experience FSP Business
Professional introduction People / HR / Development
Gather client information Structure
Agree on service to be rendered Systems
Policies and procedures
Present proposal Operations & Administration
Agree on solution Marketing
Implementation Risk management & Compliance
Ongoing advice and services Financial Management
Income Profit/Loss
Business
Shareholder Value=Conduct analysis & prepare report
This is the game financial advisors play
Top 10 challenges of advisory firms
1. Lack of capacity to service clients
2. Building value in the practice
3. Keeping pace with technology
4. Developing specific expertise internally
What takes up your time?
20%
10%
100%
30%
40%
50%
60%
70%
80%
90%
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Ge
ne
rati
ng
inco
me
Client
engagement & service
Management Compliance Administration
Income generating
Cost to company
Top 10 challenges of advisory firms
1. Lack of capacity to service clients
2. Building value in the practice
3. Keeping pace with technology
4. Developing specific expertise internally
5. Time management
6. Improving efficiency
7. Managing growth
8. Getting better clients
Copyright
Key challenges: Service model & pricing
Your target market
✓Business owner
✓Professional
✓Earns R 50 000 p.m.
✓Married
✓Non-smoker
✓Respectful
Importance of client segmentation
20%
10%
100%
30%
40%
50%
60%
70%
80%
90%
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
% o
f R
even
ue
Wealthy
Affluent
Small clients
Proportion of clients
Top 10 challenges of advisory firms
1. Lack of capacity to service clients
2. Building value in the practice
3. Keeping pace with technology
4. Developing specific expertise internally
5. Time management
6. Improving efficiency
7. Managing growth
8. Getting better clients
9. Offering value-added services
10. Maintaining a life outside of the business
How to improve your income?
“The purpose of business is to create
and keep a customer.”
- Peter F. Drucker
Copyright
Your clients’ experience?
• Integrity
• Competence
• Sound advice
• Service model
• Value proposition
• Delivering consistently
Turning Clients into Raving Fans
