In our first blog series focusing on strategic planning and your firm’s business model (http://aeschlapia.wordpress.com/2012/02/06/how-to-define-your-business-model-and-set-the-objectives-that-will-bring-it-to-life/) we reviewed types of business models including solo, silo and ensemble firms and how strong ownership mentality helps drive success and creates focus to leverage services offered to your clients.
We also identified that your business model explains the flow of money within your firm along with identifying the services that your clients find valuable with a focus on what the largest income generator for your firm is.
Your business model has been and needs to continue to evolve for a variety of reasons including industry commoditization and increased competition. In order to stay competitive and set yourself apart from your competitors, adopting a higher value business model will be a vital part of your firm’s success.
The structure of your business must change in order to support your new business model. If not you will experience:
- declining revenue growth
- deteriorating client satisfaction
- increased levels of stress on your team
- erosion of market share
- loss of credibility
As you change your business model, you will need to solve complex wealth management problems and build stronger relationships with your clients, all of which will require added resources. Clients are desperately seeking advisors that they can rely on. Provide a business model that enables them to:
- Trust that their advisor will act in their best interest at all times
- Know their advisor is there when needed
- Know that fees have been minimized
- Retain control of their assets
- Provide meaningful educational opportunities
Providing this type of business model is important, but do not forget to share your business model with your clients and prospects. After all, you need to educate and demonstrate what makes you different from the rest!
Include the following items while you review and refine you business model:
- Key Partners
- Key Activities
- Value Proposition
- Customer Relationships
- Customer Segments
- Revenue Streams
- Channels for Reaching Clients
- Key Resources
- Cost Structure
Ironstone can assist you in developing an up-to-date business model that meets the needs of your clients. We specialize in identifying gaps in your existing plan and will collaborate with you to develop solutions that are parallel in achieving the results your desire.
Contact us for assistance in starting and improving your Business Model. We want to hear from you! Share your best ideas here! What challenges do you face in setting yourself apart from your competitors? We always love hearing from you!
Follow us as we explore each of Ironstone’s Fundamental 4™!
- Strategic Planning
- Business Development
- Operational Effectiveness
- The Human Element
You won’t want to miss our next in the series: Business Development-Branding