Christopher Ambridge from Provisus Wealth Management explains how advisors should be differentiating themselves from the crowd
Practice management may have turned into something of a buzzword in the financial advisory business, but at its core is a systematic process that can help advisors boost their value proposition and potentially attract a new set of clients.
One of the key aspects of effective practice management is a thorough self-appraisal, explains Christopher Ambridge, CFA, President & Chief Investment Officer, Provisus Wealth Management.
“Advisors have to determine what they are good at, what they can bring to the table and where they can add value for their clients,” Ambridge says. “No one is great at everything, and those who claim to be are generally average at most things. Practice management is a pro and con analysis of how you want to run your practice.”
The next step for an advisor is to identify the areas in which they are most skilled or have the most expertise, and then focus solely on those areas. It’s a move that has the potential to give an advisor a significant leg up over the competition, Ambridge says.
“If the competition isn’t looking to weed out their deficiencies, you have an advantage,” he says.
"So, once your self-analysis is done, you can work out what areas to drop in order to have more time to concentrate on the areas where you can specialize.”
Benchmarking against those considered to be the best in the industry is another important aspect of modern practice management. Examine the way the competitors of those industry leaders have restructured and altered their business models in an attempt to compete.
“You have to look at what is happening out there, be a voracious reader and ask questions,” Ambridge says. “Being a practice of multiple advisors who all do the same thing probably doesn’t make much sense – if you specialize you bring more to the table.”
Implementing a practice management strategy benefits the most important aspect of any advisor’s business: their clients.
“Clients are with you because they found something they could relate to when they first met you, but that doesn’t mean those clients aren’t being approached and wooed by other advisors, especially the high net worth ones,” Ambridge says. “So, you have got to be constantly reassessing and focusing on clients. In this day and age, where there are so many new technologies, it is the little things that are going to help advisors distinguish themselves from the competition and stand out.”
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