Although a great deal has been written and discussed about FoFA and its impact on advice businesses in the future, Seaview Consulting says that it is a beneficial catalyst for long-term evolution that will actually improve business efficiency and customer service.
Planning practice owners can be described as falling into one of two groups:
Those addressing how best to meet the prescriptive requirements forced upon them by the legislative change and making adjustments to meet those obligations
Those that regard FoFA as an opportunity and are utilizing the changes to thoroughly review their business practices – implementing a long term strategy to build a business that is sustainable and ‘leverageable’.
The next five years are going to reward the advice 'innovators’ – those who acknowledge that the models of the past are not the solutions for the future, according to Seaview Consulting.
Businesses with growth aspirations will have three choices as to the path they tread:
More from More
More from the Same
More from Less
Traditionally 75% of the costs in an advice business are staff-related expenses, and consequently as the needs grew so did staffing levels, i.e. the More from More approach.
These resources incurred large initial costs and utilisation grew until the business hit the next ‘step’, requiring further investment – and so the cycle repeated. The business constantly collides against the glass ceiling.
Seaview Consulting says there are other options and is helping business owners to identify ’Efficiency’ driven value growth and ’Effectiveness’ driven value growth.
Efficiency (More from the Same) is an approach which looks to create more from the resources that the business has available to it.
Effectiveness (More from Less) is an approach which looks to bring innovation to the business and change the nature of some of the things it does.
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