In recent articles, I have written about the opportunity in the changing landscape for advisers who are prepared to capitalise on disruption. And perhaps, in my external optimism, I failed to acknowledge how difficult this landscape is for those who see it changing beyond their capability or desire to change with it.
For those advisers who will leave the industry rather than continue ongoing study, it will be a big loss of your knowledge, experience, and care for clients. We will be working over the coming years to tap into the ‘silver reservoir’ of knowledge that future advisers can and should be learning from. If you would like to be part of this interview series, please let us know by replying here.
For those advisers who are going to be doing the required study and stay in practice, the ability to tap into other revenue streams for your business may prove essential. It's worthwhile taking a look at other industries and how they make money in order to gain some ideas on how a future adviser might source revenue. Particularly coaching and personal development - which are clear aspects of financial planning.
Potential new streams of income could include:
We all know face to face client contact is expensive, and is costed into the full cost of advice. But what about the rest of the time that your client is going about their everyday lives? There is a massive need for ongoing financial education. Can you create a closed group that charges a monthly fee for video tutorials? Webinars? Creating content of value and then creating a community around that offer may well prove to be part of the business model of the future for advisers.
I am always interested in learning from people who have built massive online audiences. Take Danielle La Porte for example, who teaches people how to follow their purpose amongst other things. She sells products like life planners and journals off her blogs. Perhaps part of the future for advisers is to create products that people can buy to help them plan their finances - products that you make once and sell multiple times.
Can you charge a fee for speaking ? Share your expertise in an industry specific audience? Charge for people to attend your events? Partner with other professionals in a different space to put on events across a few different subjects. People still love face to face contact and events are one way to create community and word of mouth.
With shared workspaces now like Wework perhaps the traditional office space and overhead model needs to change for advisers. Lowering costs-to-serve that are fixed is one way to streamline your business. Other industries have tapped into this - and there is no longer a stigma attached to not having a fancy office. Finding ways to reinvent your model like this could be part of an advisers future.
While there are always challenges in making a business profitable in any environment, let alone a challenging and complex legislative one, those who start thinking about diversifying their revenue early on, will be the advisers who capitalise on the changes ahead. It's how I have thought about my business for some time now, and while it takes a lot of investment in time and effort, the results can be worth it.
Until next time,
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Every day I talk to people in our industry who are under intense pressur....