But pruning your books is nothing less than a daunting task with many aspects to consider and prepare for along the way. Beyond considering the revenue generated from each client, Syed took a look at a few different aspects of the client/advisor relationship including; whether he felt empowered as the client’s primary advisor, whether clients provided him with referrals and whether the client relied upon him for more than just a once-a-year transaction. Those clients who didn’t fit his new criteria, were passed onto one of his business partners, who was better able to service their needs, Syed explained.
For those considering tackling their books, Syed has a couple tips – define and remain committed to your new client model (which clients can transition easily?), determine what’s going to happen to your existing client base that you don’t plan to pursue (you can’t abandon them, so pass them on), and most importantly, be prepared to suffer a loss before the win, in terms of revenue
“They (advisors) really have to look at how committed they are to their new model … Revenue dropped in first year, but picked up pretty quickly after that,” said Syed. “You can grow your revenue and have fewer clients.”